Significant amendments to the Arbitration Act introduce new rules aimed at increasing transparency and protecting the parties involved. Key changes include the creation of a public register of arbitration institutions and arbitrators, new grounds for declaring awards null and void, and clearly defined time limits for their annulment. These changes will affect all current and future arbitration proceedings.
On August 1, 2025, issue 63 of the State Gazette published important amendments to the International Commercial Arbitration Act, introducing long-awaited rules and procedures.
Change in the Title of the Act
First, the title of the law was changed to better reflect its actual scope – Arbitration Act. The new title is more appropriate since even before the amendment, the law did not govern only international commercial arbitration.
Arbitration Register
The amendments introduce a requirement for all permanent arbitration institutions based in Bulgaria to be entered into a newly established Register of Arbitrations maintained by the Ministry of Justice.
Arbitration institutions are now required to record every arbitration proceeding initiated before them. This rule also applies to ad hoc arbitrations formed to resolve a specific dispute. Previously, the law did not mandate the registration of such arbitrations, leaving room for abuse.
The register is partially public – it will disclose data on arbitration institutions and the names and professions of their arbitrators. Other information and documents will be accessible only to persons explicitly listed in the law, such as the Minister of Justice and the courts.
The Council of Ministers and the Minister of Justice must ensure the technical implementation of the register within four months from the publication of the law, i.e., by December 1, 2025.
Expanded Grounds for Nullity of Arbitration Awards
The amendments also broaden the grounds for declaring arbitration awards null and void. Any award rendered by an arbitrator or arbitration institution not entered into the register is considered null and void, meaning it has no legal effect on the parties. Awards on disputes that are not arbitrable are also void.
In addition, an award may be annulled if it is based on falsified evidence, perjury, a false expert opinion, or criminal acts committed by a party, its representative, a member of the arbitral tribunal, or an arbitration staff member in connection with the case.
Time Limits for Nullity and Annulment
The previous version of the law did not provide a specific time limit for requesting a declaration of nullity of an arbitration award. It was assumed that the three-month period applicable to annulment requests should apply. Since nullity concerns the inability of certain facts to create legal consequences, missing the deadline effectively validated awards affected by serious defects.
To address this, the legislature explicitly provided that nullity of arbitration awards can be established at any time, which ensures greater legal certainty and better protection against defective decisions.
The deadline for filing an annulment request remains three months from the date the award becomes final.
It is important to note that final awards previously considered void cannot benefit from this amendment if the old time limit has already expired. Awards for which the time limit has not yet expired may still be challenged under the old rules and grounds.
Effect of the Amendments
Pending proceedings as of the effective date of the amendments will continue under the new provisions. However, registration of arbitrations and arbitrators in the new register must be completed before issuing an award. This means that proceedings will likely be suspended until the technical infrastructure for registration is in place.
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