After signing both the New York and Geneva Convention, arbitration in Thailand has become one of the alternatives for going to the court. Signing an arbitration agreement or taking up arbitration clause are most commonly used in building international commercial relations. The arbitration agreement is a legal technique used to resolve disputes and conflicts between both the parties, however, it stricly prohibited in contracts between private and governmental organizations, and may not be used to settle disputes involving certain criminal, family, labour or IP interventions.
Parties can opt for one or more persons or firms who will help them settle disputes. This may be a foreigner as long as in cases where the Thai law is not applied and there's no need to enforce the decision in Thailand.
There are two Thai institues namely – the Thai Arbitration Institute of the Alternative Dispute Resolution Office and the Thai Commercial Arbitration Institute of the Board of Trade that have been established to settle the disputes between the conflicting parties. Another alternative to support this process is the International Chamber of Commerce.
Generally, both Thai and foreign arbitral awards are recognized and are enforceable in Thailand. The enforceability of the arbitral awards depends upon the necessity of the country in which the award was taken to be a member of any one of the two conventions.
In the event that one of the parties opts to revoke the arbitral award, it should be requested within 90 days before a local court of the country where the award was issued. The award will not be enforceable anywhere if the decision is pending or on hold. If on the other hand one of the parties would refuse to accept the decision of the arbiter, the Thai courts will be qualified to enforce the award.
The Thai courts may refuse the recognition or the enforcement of the award if the contesting party proves that :