International commercial arbitration

“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:

1. A citizen of the country other than Bhutan;
2. 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
3. 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.