The Implementation of The Pacta Sunt Servanda Principle to Annul The Arbitration Award By Court

Abstract

Settlement of disputes through arbitration is based on a written agreement that has been agreed upon by the parties. The agreement is valid and binding based on Article 1338 of the Civil Code, which contains the pacta sunt servanda principle and excludes third parties from interfering in the settlement. However, regarding the arbitration award, it may be filed for annulment to the court. With the submission to the district court, there is third-party intervention in settling disputes. This research used a normative juridical approach with descriptive-analytical research specifications. The sources and types of data used were secondary data collected through the literature, which was then analyzed descriptively-qualitatively. The research results showed that in the annulment of the arbitration award, the pacta sunt servanda principle was still upheld with the limitation of the court's authority only to declare the annulment and was not authorized to take action to adjudicate itself. Thus, the pacta sunt servanda principle remained valid because the arbitration institution still carried out the settlement following the agreed agreement.