| dc.description.abstract | The annulment of an arbitration award may be filed if there is a
discrepancy, an excess beyond the claims, improper procedures, or falsified
documents. Although arbitration awards are final and binding, in practice,
annulment remains possible when the arbitration process is deemed inconsistent
with the principles of fairness and professionalism. In this case, the annulment was
sought due to alleged conflicts of interest and unprofessional conduct by the
arbitrator in examining the dispute between PT HK Realtindo and the consumers.
The East Jakarta District Court, whose decision was later upheld by the Supreme
Court in Decision No. 665/B/Pdt.Sus-Arbt/2024, determined that the BANI
arbitration award failed to meet the principles of impartiality and integrity.
Business disputes, also known as commercial disputes, are generally resolved
through litigation or non-litigation means, with arbitration being the preferred
choice due to its efficiency and finality. The problems formulated in this thesis are
as follows: 1. What are the provisions and requirements for the annulment of an
arbitration award by the District Court? 2. What are the legal consequences of the
annulment of the BANI arbitration award by the District Court based on Decision
No. 665/B/Pdt.Sus-Arbt/2024? 3. What are the judges’ legal considerations in
deciding the annulment of the BANI arbitration award based on Decision No.
665/B/Pdt.Sus-Arbt/2024?
This research employs a normative juridical method using statutory and
case approaches. The data sources consist of secondary data, including primary
and secondary legal materials. Data were collected through literature studies and
analyzed using descriptive techniques.
Article 70 of the Arbitration Law stipulates that an arbitration award may
be annulled if there is evidence of falsified documents, concealed documents, or
deceit. The application for annulment must be filed within 30 days after the award
is registered with the District Court, with the right to appeal to the Supreme Court.
The Supreme Court upheld the East Jakarta District Court’s decision to annul the
BANI arbitration award in the dispute involving PT HK Realtindo, emphasizing the
importance of arbitrator integrity. Furthermore, in Decision No. 665/B/Pdt.Sus-
Arbt/2024, the Supreme Court formally accepted the appeal, rejected the objection
concerning the East Jakarta District Court’s jurisdiction, and affirmed the
annulment of the BANI arbitration award due to alleged conflicts of interest and
unprofessional conduct by the arbitrator. | en_US |