• Technical knowledge /expertise
• Flexibility
• Speedy
• Informal proceeding

They shall act as neutral and independent, not as a party’s representative.

“Arbitration agreement” means an agreement in writing between the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not;

An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement;

An arbitration agreement is in writing if it is:

• Contained in a document signed by the parties;
• An exchange of letters, telex, telegrams, emails or other means of communication which provide a record of the agreement; or
• An exchange of statements of claims and defenses in which the existence of an agreement is alleged by one party and not denied by the other;

The reference in a contract to any document containing an arbitration clause constitutes an arbitration agreement in writing, provided that the reference is such as to make that clause part of the contract.

“Negotiated settlement” means a process, whether referred to by the expression ‘conciliation’, ‘mediation’ or an expression of similar import, whereby parties request negotiator to assist the parties to settle dispute arising out of or relating to a contractual or other legal relationship, amicably.

“Domestic arbitration” shall mean an arbitration to which all parties are:

• Citizens of the Kingdom of Bhutan; or
• Body corporate, a company, business entity or an association which is incorporated in, or whose central management and control is exercised in Bhutan.

Exclusion from domestic arbitration

The matters which shall not be subject to domestic arbitration shall include:

• Disputes relating to rights and liabilities which give rise to or arise out of criminal offences;
• Matrimonial disputes relating to divorce, judicial separation, restitution of conjugal rights, child custody;
• Guardianship;
• Insolvency and winding up;
• Testamentary;
• Subject of inheritance;
• Subject of taxation; or
• Such other matters which are against public policy, morality or any other existing provisions of the law for the time being in force in Bhutan.

“International commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered commercial and where at least one of the parties is:

• A citizen of the country other than Bhutan;
• A body corporate, a company, business entity or an association which is incorporated in the country other than Bhutan or whose central management and control is exercised in any country other than Bhutan; or
• The Government of a foreign country.

Subject matter of international commercial arbitration

In the international commercial arbitration, only those disputes arising from relationships of commercial nature, whether contractual or not, shall be arbitrated. Provided that no arbitration shall be permitted on matter of insolvency and winding up, subject of taxation and other matters which are against public policy, morality or any other existing provisions of the law in force in Bhutan.

Domestic negotiated settlement

For the purpose of domestic negotiated settlement, the parties may resort to negotiated settlement in accordance with the laws in force in Bhutan.

International negotiated settlement

For the purpose of international negotiated settlement, only those disputes arising from relationships of commercial nature, whether contractual or not, shall be negotiated. Provided that no negotiated settlement shall be permitted on matter of insolvency and winding up, subject of taxation or other matters which are against public policy, morality or any other existing provisions of the law in force in Bhutan.