Order 14 Division 8 of the National Court Rules 1983 is a compact code of twelve rules.
Rules 61 and 62
This Division relates to proceedings after an order is made under Section 13 of the Arbitration Act 1951.
“Arbitrator” includes referee; “award” includes report.
The Division operates after an order is made under the Arbitration Act. It does not govern a private arbitration conducted under a contractual arbitration clause, which is regulated by that Act and by the agreement.
Nor is it the same as mediation under the ADR Rules 2022, although those Rules define arbitration as one of the forms of ADR: a process which is similar to a court process in which the parties to a dispute appoint a neutral third-party dispute resolution practitioner (the arbitrator) to whom the parties present their evidence and arguments and the arbitrator makes a decision for them which is binding and can be enforced as a court order. Order 2 of the ADR Rules applies to mediation only.
Rules 63 to 65
Rule 63 — the arbitrator shall give to the parties not less than seven days’ notice of the time and place of hearing and may, on the application of a party, extend the time for hearing.
Rule 64 — if a party does not appear at the hearing after notice has been given to him the arbitrator may proceed in the absence of that party.
Rule 65 — the arbitrator may take the examination on oath of any witness.
Rule 63 lets the arbitrator extend the hearing time on a party’s application — no order of the Court is needed. Rule 65 gives the power to take evidence on oath, which is what makes the process a substitute for trial rather than a negotiation.
Rule 64 is the counterpart: a party who stays away after notice does not stop the arbitration.
Rules 66 to 68
Rule 66 — the Court may make orders for the payment into Court of a deposit for the remuneration of the arbitrator.
Rule 67 — the arbitrator shall make his award within such time as the Court may order.
Rule 68 — within seven days after making his award the arbitrator shall —
(a) send it to the Registrar in a sealed envelope together with a copy of the award for each party;
(b) send to the Registrar a statement showing the time occupied and the amount expended by him in connection with the hearing of the matter so referred; and
(c) notify the parties that he has sent the award to the Registrar.
The award goes to the Registrar sealed. The parties are told it has been sent, but not what it says.
It is opened only after the arbitrator’s remuneration has been dealt with — which is what secures payment for the arbitrator without requiring them to sue for it.
Rules 69 and 70
Rule 69(1) — the Registrar shall immediately bring the statement before the Court.
Rule 69(2) — where the Court has determined the remuneration to be paid to the arbitrator the Registrar shall notify the parties of the amount determined.
Rule 70 — on payment by any party of the remuneration determined by the Court in excess of the sum deposited under Rule 66, the envelope containing the award shall be opened by the Registrar.
Rule 70 says any party. So a party anxious to see the award need not wait for the other to contribute; the balance can be recovered afterwards under an order for costs.
Making the Rule 66 deposit at the outset avoids the delay entirely.
Rules 71 and 72
The Registrar shall serve on the parties by post a copy of the award.
If a party be dissatisfied with the award he may, within 28 days after service of the copy of the award referred to in Rule 71, apply to the Court for an order that the award be set aside or referred back.
Two remedies, one period. Set aside — the award is undone. Referred back — it returns to the arbitrator for reconsideration.
The 28 days runs from service of the copy of the award by the Registrar under Rule 71, not from the making of the award or from the notification under Rule 68(c). Record the date the copy arrives.
Apply by notice of motion in the proceedings, supported by an affidavit, citing Order 14 Rule 72 as the jurisdiction and exhibiting the award and the Registrar’s covering communication.
Where no application is made within the 28 days, the award stands. See time limits generally and note that Order 1 Rule 15 extends time fixed by the Rules, which this is.
Order 14 and beyond
Its Divisions cover, among other things, security for costs (Division 4), receivers, the sale of property, interpleader and the Sheriff. Arbitration sits in Division 8 as one of the Court’s tools for disposing of a dispute other than by trial.
Note also Order 8 Rule 20(u): a party may plead that the proceedings are related to an arbitration held in Papua New Guinea.
An arbitrator makes a decision for the parties. A mediator does not: mediation is a process by which the parties reach their own agreement or make a decision based on the principle of self-determination.
Since 1 September 2022 mediation is the default step in most National Court proceedings — see court-ordered mediation.
Sources
- National Court Rules 1983 — O 1 r 15; O 8 r 20; O 14 Divs 4, 8, rr 61–72
- Alternative Dispute Resolution Rules 2022 — O 1 r 3; O 2 r 1
The Arbitration Act 1951, including section 13, is not available on PacLII.
Before relying on anything here, read the current text of the National Court Rules 1983 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.