About Centre

Bhutan ADR Centre (“Centre”) was formally established in May 2018 based on the mandate of Bhutan ADR Act 2013. Bhutan ADR Act 2013 (“Act”) was enacted by second parliament and implemented from February 25, 2013. The Act was enacted based on the mandate of the Constitution of the Kingdom of Bhutan to encourage arbitration and mediation through institution.

In Bhutan, even in absences of institutions like Centre and formal establishment of judiciary, traditionally mediation has been there as a preferred method of dispute resolution. Compare to mediation, arbitration is fairly new method of dispute resolution in Bhutan. Bhutan became a member of New York Convention on the Recognition and Enforcement of Foreign Arbitral in September 2014.

Before the establishment of Centre, then the Construction Development Board under the Ministry of Work and Human Settlement (MOWHS) administered the arbitrations related to construction disputes. Other commercial disputes were referred for litigation and decided by courts.

In accordance with the Act, Centre serves as a neutral, efficient and reliable ADR Centre. It provides arbitration and mediation services to Bhutanese parties as well as overseas parties. Centre has its own Rules for administration of arbitration and mediation. Centre adopted its first edition of Rules in 2018 and second edition in 2023. With 2023 Rules, Centre can now administer emergency arbitration as well expedited arbitration.

Under the Act, Centre is entrusted with the following twelve functions:

1. Carry out administrative and secretarial functions as may be appropriate for the dispute resolution proceeding at the request of the parties;
2. Facilitate the dispute resolution proceeding by providing required facilities for the conduct of such a proceeding at the request of the parties;
3. Appoint an arbitrator, if the Centre has been so requested, where parties fail to agree on the appointment of the arbitrator or have not designated an appointing authority or the designated appointing
4. Provide expertise in the field of alternative dispute resolutions to the stakeholders;
5. Provide training to the people who are involved in the Alternative Dispute Resolution;
6. Register the arbitration and maintain record of the arbitral award;
7. Certify an arbitrator who is trained by the Centre;
8. Accredit other qualified arbitrators;
9. Facilitate negotiated settlement as deemed appropriate;
10. Disseminate information to the public on alternative dispute resolution;
11. Perform such other functions assigned to it by this Act or any other law incidental thereto; and
12. Liaise with International Alternative Dispute Resolution bodies. authority fails to appoint;