Inherent powers of arbitrators in international arbitration

The first condition for the arbitration proceedings to take place is the existence of an arbitration agreement between the parties to the dispute. The arbitrators are vested with the jurisdiction of conducting the proceedings and taking decisions by the arbitration agreement. Arbitration laws, arbitration rules of institutional arbitration centres, and international agreements may also contain provisions which regulate arbitrators' jurisdiction. While it may be possible to explicitly grant some powers to the arbitrators, which can be defined as explicit powers of arbitrators, it can also be implicitly deduced from the aforementioned regulations or from the characteristics of the arbitration that the arbitrators have discretionary, implied and inherent powers. The requirement for having a fair trial and the resolution of the dispute in all its aspects makes it possible for the arbitrators to use their inherent powers. In certain instances, the arbitrators may recourse to their inherent powers in order to solve the issues in a specific case. This may be done where the parties or the rules neither explicitly nor implicitly authorize the arbitrators. Inherent powers of arbitrators are based on their judicial characteristic as an institution for resolving the dispute between the parties. Arbitrators are naturally considered to possess those inherent powers. Arbitrators can make decisions on the procedural matters required in the proceedings, as well as on matters related to the merits of the dispute. The decisions taken by arbitrators within the framework of inherent powers, which are the subject of this Thesis, must be in compliance with the conditions and limitations of this power. The will of the parties or the rules of law applied to the merits and procedures and the limitations imposed on the arbitrators will determine the exercise of natural powers. With that regard, as a rule, the use of inherent powers in international arbitration must be in compliance with the general principles, parties' will, lex arbitri, institutional arbitration rules, and ethical rules. Certain exceptions may apply. The discussion of what kind of decisions can be taken in these cases where there is no prohibition on the arbitral tribunal continues in current judicial decisions and legal academia. Likewise, the discussion on whether it is possible for arbitrators to take decisions in case there is no explicit powers granted by relevant legal sources is still ongoing. Various researchers, writers, and lawyers argue different opinions on that discussion. This thesis seeks the answer to the question on which issues and within which limitations arbitrators can take decisions based on their inherent powers in international arbitration. While doing so, practices and decisions in international commercial arbitration as well as international investment arbitration, mostly the ICSID arbitration, are taken into account. Legal academia as well as courts' and tribunals' decisions produced extensive results for this Thesis. The legal resources that enable the emergence of inherent powers, the conditions that enable the use of inherent powers, and the issues of substantive law and procedural law, which inherent powers the arbitrators can or cannot use are examined. Regarding the existence of a valid and enforceable arbitral award, how and for what reasons the arbitrators' use of inherent power will be examined by the courts in these cases has also been evaluated.