Arbitration in Thailand
Arbitration is an alternative to going to court after Thailand signed with both Geneva and New York Convention. It is a common practice to sign an arbitration agreement or to include the arbitration clause in the basic agreement within international commercial relations. It should also be mentioned here that arbitration always is not the final solution. In many cases, arbitration is not allowed in contracts between public and private organizations. Arbitration may also not be used in case of IP, labor, family or certain criminal conflicts.
Institutes Available in Case of Dispute
It is on the parties to decide and choose one or more persons to decide and resolve the dispute. This can be a foreigner person. As long as the governing law is not Thai law, there is no need to enforce the decision in Thailand. There are two Thai institutes authorized and established to support this process. The Thai Arbitration Institute of the Alternative Dispute Resolution Office (TAIADRO) and the International Chamber of Commerce (ICC) can also be approached.
If you talk about Thailand, both Thai and International arbitral awards are enforceable. However, it is worth mentioning here that it will only be the case if the country in which the arbitral award was taken is also a member of either one or two conventions.
Right to Appeal
There is always a right to appeal to the parties. If either of the parties likes to revoke the award, this has to be done within 90 days before the court of the country where the award was granted or issued. The award will not be enforceable anywhere till the final verdict of the court. If on the other hand one of the parties would refuse to comply with the decision of the arbiter, the Thai courts will be qualified to enforce the award.
Cases Where Thai Court May Revoke Enforcement
If the contesting party can proof the said following points, the Thai court may revoke or refuse enforcement.
- The other party was incapable or incompetent.
- The arbitration agreement was not binding by the law.
- The party was not given advance notice prior to the arbitration and may not be able to defend them properly.
- The arbitrator was not authorized to decide upon the dispute. This is because of the fact that it does not fall within the scope of the arbitration agreement or clause.
- The award is not binding by law or is suspended.
- Enforcement would be opposite to the public policy of the state.
- Other provisions of the arbitration were not set prior to the agreement.
These are some of the cases where the Thai court may revoke or refuse the enforcement. If you have to deal with an arbitration dispute, you may contact us. We are a team of legal and accounting professionals. We will help you pass through the arbitration process conveniently. You may also contact us for a free consultation.