Originally from World Arbitration Reporter - Second Edition

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I.  BASIC INFORMATION 

A. History and Background of the Institution 

The history of the arbitration court attached to the Hungarian Chamber of Commerce and Industry (the “HCCI”) goes back to the period following the World War II. During this period fundamental social and economic changes were brought about. From1948, many aspects of the economy began to be nationalized (industry, trade, foreign trade, building industry, financial sector, transport). Private economic activity was restricted to small-scale domestic trade and industry had little importance. The economy was directed centrally by state organisations. Businesses and individuals did not have autonomy they had to fulfill detailed targets fixed by central agencies to tight deadlines. A strict system of central planning came into existence. 

In such circumstances, the Government of the Hungarian People’s Republic ordered, using its power under Section 1 of Act XVI of 1946, further prolonged by Section 1 of Act XXIV of 1948, the setting up of a new Hungarian Chamber of Commerce to replace the former chambers of commerce and industry in order to manage foreign economic relations and to provide for the operation of a permanent institutional and ad hoc arbitration court. Accordingly, the predecessor of today’s arbitration court attached to the HCCI (the “Arbitration Court”), attached to the newly established Hungarian Chamber of Commerce, started its operation in 1949 as an independent body which took over the activity of the arbitration tribunal of the Stock Exchange, which ceased to exist on 31 May 1949. Until the Rules of the Arbitration Court were elaborated, the rules of the former arbitration tribunal of the Stock Exchange were applied, and practically, even the arbitrators themselves were transferred, though without any legal succession. The Hungarian Chamber of Commerce was obliged by law to oversee the operation of the arbitration court attached to it.