International Commercial Arbitration at Cambodia
Sure! Here's a detailed overview of International Commercial Arbitration in Cambodia:
🇰🇠International Commercial Arbitration in Cambodia
1. Legal Framework
Cambodia’s arbitration law is primarily governed by the Law on Commercial Arbitration, 2006.
The law is influenced by the UNCITRAL Model Law on International Commercial Arbitration (1985), providing modern and internationally aligned arbitration rules.
Cambodia is also a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), having acceded to it in 2004.
Arbitration is recognized as a valid dispute resolution method both for domestic and international commercial disputes.
2. Key Features
Arbitration Agreement: Parties must have a valid arbitration agreement, which should be in writing.
Seat of Arbitration: Parties can select Cambodia as the seat, but arbitration can take place anywhere as agreed.
Party Autonomy: The law strongly supports party autonomy in deciding arbitration procedures, including the number of arbitrators, language, rules, and place.
Arbitrability: Commercial disputes are arbitrable, but some disputes related to public policy or criminal matters may not be.
3. Arbitral Institutions
Cambodia currently does not have a strong tradition of institutional arbitration like some other countries, but there are developments:
Cambodian Arbitration Center (CAC): Established to promote and administer arbitration in Cambodia. It provides arbitration and mediation services.
Parties often resort to ad hoc arbitration or use foreign institutions such as ICC (International Chamber of Commerce) or SIAC (Singapore International Arbitration Centre) for international disputes involving Cambodian parties.
4. Court Involvement
Cambodian courts generally respect arbitration agreements and the arbitration process.
Courts can intervene in arbitration mainly to support arbitration procedures, such as appointment of arbitrators if parties fail to agree.
Courts have limited powers to annul arbitration awards, primarily on procedural grounds or violations of public policy.
Enforcement of arbitral awards is streamlined, particularly for awards from New York Convention signatory countries.
5. Recognition and Enforcement
Cambodia enforces foreign arbitral awards in line with the New York Convention.
Domestic arbitral awards are also enforceable through Cambodian courts.
Grounds for refusal to enforce are limited and similar to those under the New York Convention, including issues of due process or public policy.
6. Practical Considerations
Arbitration is increasingly favored in Cambodia due to a developing business environment and the need for reliable dispute resolution.
Given the still-evolving local arbitration infrastructure, international parties often prefer institutional arbitration under recognized bodies.
Language: Khmer is the official language, but parties may agree on arbitration in English or other languages.
Summary Table
| Aspect | Cambodia |
|---|---|
| Governing Law | Law on Commercial Arbitration, 2006 |
| Model Law Basis | Based on UNCITRAL Model Law |
| International Conventions | New York Convention (since 2004) |
| Arbitration Institutions | Cambodian Arbitration Center (CAC), ICC, SIAC usage common |
| Court Support | Courts supportive but limited interference |
| Enforcement of Awards | Enforced under New York Convention standards |
| Common Practice | Mix of ad hoc and institutional arbitration |
RELATED Blog
0 comments