QUESTION: We have agreed in a new contract for arbitration in the event of any disputes. But how is an arbitrator appointed? Is there any restriction or criteria for the appointment? If the two parties fail to mention the applicable law in the arbitration clause, how is the governing procedure in arbitration determined?
MI, Doha

ANSWER: Article 193 of the Code of Civil and Commercial Procedure provide that arbitrators shall be appointed based on the arbitration agreement or an independent document.
An arbitrator may not be a minor, bankrupt, legally incapacitated person or a person deprived of his civil rights due to a criminal offence unless he has been rehabilitated. The arbitral tribunal must be composed of an odd number of arbitrators; otherwise the arbitration shall be null and void.
Article 198 stipulates that if it is agreed to hold the arbitration in Qatar, the laws of the State of Qatar shall be applicable to all elements of the dispute, unless otherwise agreed by the parties.
The parties have right to choose the law or the rules applicable to the procedure.
However, if the parties failed to opt, Qatari law shall apply when the arbitration is to be held in Qatar.

Court decides on expenses
Q: One of our cases before the civil court has been rejected. The judgment states that the plaintiff must bear the costs. If plaintiffs are several, how are the costs shared? What is Article 131 of the procedural law?
DF, Doha

A: According to Article 131, the court shall decide, on its own motion, the expenses which shall be borne by the losing party.
Attorney fees shall form part of such expenses.
If the losing parties are several, the court may divide the expenses between them on an equal basis or on a pro rata basis of the interest of each of them in the lawsuit according to the assessment of the court, and they shall not be jointly liable for payment of the expenses, unless they are jointly liable for the original obligation.

Landlord’s responsibility
Q: Is it required to register all lease contracts? If so, whose duty is it to register the lease? Our landlord wants us to pay the registration fee. As per the contract, the landlord should do maintenance. If the landlord refuses to do so, what are the rights of the tenant? In the contract, there is no automatic renewal. In such a case what will happen if parties continue to stay on the premises?
HG, Doha

A: As per law, all lease contracts must be registered by the landlord at the Registration Office at the Municipality.
Leases in Qatar are governed by law No 4 of 2008 (its amendments) and Articles 582-669 of Law No 22 of 2004, of the Civil Laws of Qatar.
In order for the landlord to be able to bring a claim in respect of the lease contract before the Rental Dispute Settlement Committee the lease must be registered.
The landlord has to pay an annual fee of 1% of the annual rent for such registration. There will be a penalty imposed on landlords who fail to register lease agreements.
Regarding automatic renewal of the lease, if the tenant continues to occupy a property after expiry of the lease agreement without objection by the landlord, the lease agreement will be deemed to automatically renew on the same terms and conditions for the same period.
When there are obligations on the landlord and if he fails, the tenant may seek permission from the Rental Dispute Settlement Committee to carry out such maintenance and for the costs to be deducted from the rent payable.

Grounds for detention
Q: My colleague had some issues with the management and they terminated him from service. The management later filed a case against him too. He is not arrested but is under “preventive detention”. As per law, on what grounds can a resident be detained by authorities? None of the allegations made by the management has been established. All are baseless allegations.
WV, Doha
A: As per Article 110 of criminal procedure law, following the interrogation of the suspect, if sufficient evidence found attributing the crime or the chances of leaving the country and the incident is a felony or a misdemeanour punishable by imprisonment for a period exceeding six months, the public prosecution may issue an order for preventive detention of the suspect.
In some cases, the public prosecution may, instead of the preventive detention and in other misdemeanours punishable by imprisonment, issue an order prohibiting the suspect from leaving residence or the country; or putting the suspect under the surveillance of the police; or demand the suspect appear before the police headquarters at specific times; or prohibiting the suspect from attending certain places or prohibiting the suspect from practicing specified activities.
In all cases, the suspect may be imprisoned as a precautionary measure if he has no permanent and known place of residence in Qatar and the crime was a misdemeanour punishable by imprisonment.

- Please send your questions by e-mail to: leges@qatar.net.qa (Mobile:55813105)

LEGAL SYSTEM IN QATAR
According to Article 835, where a final judgment declares a company bankrupt, without prejudice to any more severe penalty prescribed in the Penal Code or in any other law, members of the board of directors, managers or directors or those responsible for liquidation, shall be punished with imprisonment for a term of no less than one year and no more than five years if they committed any of the following acts:
(1) conceals, destroys or alters his books, papers, and other records;
(2) conceals or disposes of property with intent to defraud creditors;
(3) knowingly contributes to or increases his insolvency by making false representations, whether in his books, balance sheet or by way of oral admission, or by failing to deliver up books or explanations;
(4) obtained a scheme of composition in a fraudulent manner; or
(5) disclosing untrue information on the subscribed or paid up capital, or distributing fictitious dividends or by fraudulently appropriated remunerations in excess of the amount provided for by the law or by the company’s memorandum of incorporation or articles of association.
If a final judgment declares any merchant bankrupt, such merchant shall be deemed bankrupt by negligence and shall be punished with imprisonment for a term of no less than six months and not exceeding three years if he committed any of the following acts:
(1) spends huge amounts on his personal or his household expenses;
(2) failed to maintain the adequate commercial books which are sufficient to declare financial position;
(3) fails to provide the data demanded by the bankruptcy adjudicator or receiver, or intentionally gives false information;
(4) if, after cessation of payments, pays or grants a special advantage to any of the creditors for the detriment of the remaining creditors or in order to obtain acceptance of the composition;
(5) disposes goods at a value less than its normal price, with the intention of delaying cessation of his payment or declaration of bankruptcy or dissolution of the composition, or in order to achieve such purpose, has restored to illegal maneuvers to obtain money; or
(6) spent excessive amounts in speculation in such matters as are not warranted by his commercial activities.
As per Article 838, where a criminal case is instituted for fraudulent or negligent bankruptcy against a bankrupt, or a member of the board of directors, director or liquidator of a bankrupt company, or where such person condemned by a judgment in accordance with the provisions of the above mentioned; the civil or commercial claims shall remain independent from the criminal case, and the proceedings related to the bankruptcy shall remain as organised by the law and shall not be referred to the criminal court, which shall nor shall the court be entitled to deal therewith, unless the law provides otherwise.
Any person who steals or hides property belonging to the bankruptcy shall be punished with imprisonment for a period of not less than six months and not exceeding three years, even if such person is a spouse of the bankrupt or from his ascendants or descendants.
The court shall, in its own initiative, decide to return the property even if a judgment of acquittal has been issued on the crime, and the court shall, at the request of the concerned parties award compensation if appropriate.