Arbitration clause in the contract for public procurement

The High Court of Cassation and Justice has ruled that, in accordance with the mandatory provisions of art. 286 of GEO no. 34/2006, disputes arising from public procurement contracts are the exclusive competence of the administrative courts, so it is illegal to act an arbitration clause in a public acquisition contract. The High Court also held that lack of action within the exception to the arbitration procedure of setting up the tribunal, including the relative validity of the arbitration agreement, does not prevent in any way the court vested with the action for annulment of the arbitration to notice the parties about the issue of whether such an agreement is valid for public contracts. Accordingly, the High Court admitted the appeal, amended judgment under appeal in a sense that the action for annulment of the arbitral tribunal was quashed and sent the case to the administrative court for settlement. (Decision no. 3483 of 29 June 2010 in appeal with the Administrative and Fiscal Department of The High Court of Cassation and Justice covering the action for annulment of an arbitration award)

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Dan Alexandru NEGRU

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