The most important requirement to petition for BAPMI's Adjudication for dispute settlement is a prior Adjudication Agreement between the disputing parties. Without an Adjudication Agreement, the dispute cannot be submitted to BAPMI. An Adjudication Agreement means a written agreement of the parties that the dispute between them will be resolved through BAPMI's Adjudication. An Arbitration Agreement may be set out in:
- one of the clauses of the agreement (Adjudication Clause); or
- a separate agreement entered into by the parties after the dispute arises.
Model Agreement of BAPMI's Adjudication is as follows:
This Agreement is made between:
[name and address of Financial Service Consumer (the First Party)]
[name and address of the Financial Service Provider (the Second Party)]
- That the First Party and the Second Party (hereinafter referred to as "the Parties") have a dispute between the Parties in the Capital Market Field, (hereinafter referred to as the "Dispute") as follows:
- That the Parties have pursued settlement efforts through deliberation and Mediation but fail to reach a settlement agreement.
- That the Parties have agreed to use the services provided by BAPMI's Adjudication to resolve the said dispute.
THE PARTIES AGREE AS FOLLOWS:
- The Parties agree to settle the dispute in BAPMI's Adjudication, and agree that the first party shall file a Petition for Adjudication to BAPMI.
- The Parties agree to be subject to and obey the Adjudication Award, which will be passed by the Panel through the Adjudication process.
Adjudication Rules and Procedures
The Parties agree to comply fully with the Rules and Procedures of BAPMI's Adjudication, as attached to this Agreement, and the Parties procure that any of persons acting as their representatives, agents, and attorneys is also subject to the Adjudication Agreement and these Rules and Procedures.
Approval of Disclosure
The Parties agree that all or part of information (including information on Consumers) and or confidential information that may be disclosed in the Adjudication process shall waive the obligation of the Second Party to maintain confidentiality in accordance with applicable law and or any agreements with Consumers.
- The First Party and the Second Party (including any of their representatives) may not make any claims against BAPMI, BAPMI's Management, BAPMI's Officers or Adjudicators, including but not limited to claims in respect of:
- part or all services provided by BAPMI (or provided by any of the Management, employees, or representatives);
- any Adjudication process conducted by BAPMI;
- any disputes filed by the First Party;
- any claims made by the First Party;
- any dispute settlement reached between the Parties (or any of their representatives);
- any dispute settlement conducted by the First Party and the Second Party (including or any of their representatives);
- any actions to be in conformity with the laws, regulations or administrative requirements imposed by the Capital Market Regulator or other government agencies; and/or
- any actions taken to meet requirements of laws, regulations or court order.
- The Parties acknowledge and agree that any claims against BAPMI (including any of the Adjudicator, Management, Secretary, and other BAPMI personnel) that are made in violation of the provisions of paragraph (1) will be a material and real loss to BAPMI. Therefore, the Parties entitle BAPMI to take any proceedings on these claims, and BAPMI also reserves the right to claim any of the Parties for full compensation of any legal fees incurred by BAPMI thereon.
- The Adjudication Award will be attached to this Agreement right after being pronounced by Adjudicator, and shall constitute an integral and inseparable part of this Agreement.
- The Second Party declares it is subject to and obedient to any Adjudication Award.
- The Second Party agrees that, pursuant to the Rules and Procedures of BAPMI's Adjudication, the First Party has an option to accept or reject the Adjudication Award.
- In the case of the First Party accepting the Adjudication Award, the First Party shall declare it by affixing the signature of approval on the Adjudication Award document, and thus the Adjudication Award has final and binding legal force on the Parties.
- In the case of the First Party rejecting the Adjudication Award, the Adjudication Award is thus considered to be non-existent and has no legal consequences on the Parties.
IN WITNESS WHEREOF, this Agreement is made in Jakarta, on the …… day of ………………………………………, in two (2) copies, each of which is original and verbatim copy and have the same legal force as the other.
Date and Signature:
---------- ANNEX TO AGREEMENT ----------
[to be included later]