International Commercial Arbitration at Thailand
Here’s a detailed overview of International Commercial Arbitration in Thailand:
1. Legal Framework
Thailand’s arbitration is governed primarily by the Thailand Arbitration Act, B.E. 2545 (2002), which is based on the UNCITRAL Model Law on International Commercial Arbitration.
The Act applies to both domestic and international arbitration but includes some distinctions for international cases.
Thailand is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating enforcement of arbitral awards.
Thai courts generally respect arbitration agreements and arbitral awards but maintain some judicial oversight, especially on public policy grounds.
2. Arbitration Institutions in Thailand
Thai Arbitration Institute (TAI): Established under the Thai Chamber of Commerce, it is the primary institutional arbitration center in Thailand.
Thailand Arbitration Center (THAC): An independent institution providing arbitration and mediation services with international standards.
Parties may also select other international institutions like ICC, SIAC, or LCIA for arbitrations seated in Thailand.
3. Key Features
Party Autonomy: Parties can freely choose arbitrators, seat, procedural rules, and language.
Neutrality: Arbitration is favored as a neutral dispute resolution forum especially for cross-border transactions.
Confidentiality: Arbitration proceedings are private, though the Act does not explicitly mandate confidentiality.
Enforcement: Thai courts generally enforce both domestic and foreign arbitral awards in line with the New York Convention.
Court Intervention: Courts have limited powers to assist arbitration (e.g., appoint arbitrators, grant interim measures), but may review awards for procedural fairness and public policy compliance.
4. Arbitral Procedure
Arbitration begins with a request filed according to the arbitration agreement or institutional rules.
The tribunal typically consists of one or three arbitrators.
Hearings and evidence are conducted as per parties’ agreement or institutional rules.
Awards must be in writing and signed by the arbitrators.
5. Recognition and Enforcement
Thailand enforces foreign arbitral awards in accordance with the New York Convention.
Enforcement may be refused on narrow grounds such as invalid arbitration agreement, due process violations, or if enforcement would contravene Thai public policy.
Thai courts respect finality of awards, though challenges based on procedural irregularities or jurisdictional issues are possible.
6. Practical Considerations
Thailand is a popular seat for arbitration in Southeast Asia due to a pro-arbitration legal framework.
Both TAI and THAC provide modern institutional arbitration services.
Legal counsel with experience in Thai arbitration is advisable, especially for cross-border disputes involving Thailand.
Summary
Thailand offers a robust and internationally aligned arbitration framework. Its arbitration laws, institutions, and courts support efficient and enforceable dispute resolution for international commercial contracts involving Thai parties or transactions seated in Thailand.
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