Title | THE COMMERCIAL ARBITRATION LAW OF THE KINGDOM OF CAMBODIA |
Type | Law |
Issuing Agency | National AssemblyNational Assembly |
Issuing Date | 07/03/2006 |
Unoffical Translation
NATION RELIGION KING
THE COMMERCIAL ARBITRATION LAW OF THE KINGDOM OF CAMBODIA
Adopted by
The NATIONAL ASSEMBLY
Phnom Penh, March 6th, 2006
The purpose of this law is to facilitate the impartial and prompt resolution of commercial disputes in accordance with the wishes of the parties, to safeguard the legal rights and interests of the parties, and to promote the sound development of the economy.
This Law shall not affect any other law of the Kingdom of Cambodia by virtue of which certain dispute may be submitted to arbitration or other dispute resolution procedures, or by virtue of which certain disputes may not be submitted to arbitration.
For purposes of this Law:
Unless otherwise agreed by the parties:
A party who knows that any provision of this Law from which parties may derogate, or any requirement under the arbitration agreement, has not been complied with, and yet proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, if a time limit is provided therefore, within such period of time, shall be deemed to have waived his right to object.
In matters governed by this Law, no Court shall intervene except where so provided in this Law.
The functions referred to in Articles 19(3), 19(4), and 19(5); 21(3); 22; and 24(3) of this law shall be performed by the Court (Commercial, or Appeal, or Supreme) or National Arbitration Center.
Arbitration agreement includes an arbitration clause in a contract or a separate submission agreement.
The arbitration agreement shall be in writing. An agreement is in writing if it is contained in a document signed by the parties or in an exchange of letters, or other means of electronic telecommunication which provide a record of the agreement, or in an exchange of statements of claim and defense in which the existence of an agreed is alleged by one party and not denied by another. The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement, provided that the contract is in writing and the reference is such as to make the clause part of the contract.
A Court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.
Where an action referred to in paragraph (1) of this Article has been brought, arbitral proceedings may nevertheless be commenced or continued and the court shall refer the issue to the arbitration, while it is pending before the arbitration.
It is not incompatible with an arbitration agreement for a party to request, before or during arbitral proceedings from a Court an interim measure of protection and for a Court to grant such measure.
NATIONAL CENTER OF COMMERCIAL ARBITRATION
An independent National Arbitration Center (“NAC”) shall be established under the auspices of Ministry of Commerce. The objectives of the National Arbitration Center are:
This objective includes setting standards for the qualification of arbitrators,
The Khmer natural person or foreigner who is arbitrator shall register with the National Arbitration Center. The National Arbitration Center shall have an obligation to determine the arbitrators’ qualification and shall make the public announcement of arbitrators’ list yearly. The list is not absolute; the parties are free to choose the arbitrator outside that list.
The natural person and legal entity to be permitted as a member of the National Arbitration Center are:
The application to be a member of the National Arbitration Center shall be determined by the Executive Board of the National Arbitration Center that comprises not more than seven (7) members. The term of each member is three (3) years and may re-elect for one more term.
The Chamber of Commerce may establish an Arbitration Center in Phnom Penh. The Association that comprises of businessman, industrialist, merchant and services provider may establish its own arbitral institution for disputes arising among its members; and between its members and third party.
The National Arbitration Center shall be governed by:
The General Assembly shall have inter alia functions and duties:
The General Assembly shall be attended by the members who are natural persons and a representative of each legal entity.
The Composition of Executive Board that manages the National Arbitration Center shall be elected among its members by the General Assembly. The Chairman of Executive Board shall be the Chairman of the National Arbitration Center.
The organization and functioning of National Arbitration Center shall be determined by implementing Sub-Decree.
The parties are free to determine the number of arbitrators. The number of arbitrators shall be odd number.
Failing such determination, the number of arbitrators shall be three (3).
The appointment of arbitrator shall determine as follows:
arbitrator within thirty days of receipt of a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of a party, by the Court (Commercial, or Appeal, or Supreme) or National Arbitration Center as specified in Article 6 of this Law;
When a person is approached in connection with his possible appointment as an arbitrator, he shall disclose any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties, unless they have already been informed of them by him.
An arbitrator may be challenged only if circumstances exists that give rise to justifiable doubts as to his impartiality or independence, or if he does not possess qualifications agreed to by the parties. A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.
To challenge the arbitrator, the parties shall comply with the following procedures:
for the challenge to the arbitral tribunal and the other party or parties. Unless the challenged arbitrator withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.
If an arbitrator becomes De Jure or De Facto unable to perform his functions, or for other reasons fails to act without undue delay, his mandate terminates if he withdraws from his office or if the parties agree on the termination. Otherwise, if a controversy remains concerning any of these grounds, any party may request the Court (Commercial, or Appeal, or Supreme) or National Arbitration Center as specified in Article 6 of this Law to decide on the termination of the mandate, which decision shall be subject to no appeal.
If, under this Article or Article 21(2), an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, this does not imply acceptance of the validity of any ground referred to in this Article or Article 20(2).
Where the mandate of an arbitrator terminates under Article 21 or 22 of this law, a substitute arbitrator shall be appointed according to Article 19 of this law.
The jurisdiction of Arbitral Tribunal shall determine as follows:
notice of that ruling, the Court specified in Article 6 to decide the matter, which decision shall be subject to no appeal; while such a request is pending, the arbitral tribunal may continue the arbitral proceedings and make an award.
Unless otherwise agreed by the parties, the arbitral panel may, at the request of a party, order any party to take such interim measure of protection as the arbitral panel may consider necessary in respect of the subject matter of the dispute. The arbitral panel may require any party to provide appropriate security in connection with such measure.
CONDUCT OF ARBITRAL PROCEEDINGS
The parties shall be with equality and each party shall be given a full opportunity to present his case, including representation by any party of his choice.
The parties are free to agree or disagree on the procedure to be followed by the arbitral tribunal in conducting the proceedings.
Failing such agreement, the arbitral tribunal may, subject to the provisions of this Law, conduct the arbitration in such manner as it considers appropriate. The power conferred upon the arbitral tribunal includes the power to determine the admissibility, relevance, materiality and weight of any evidence.
The parties are free to agree on the place of arbitration. Failing such agreement, the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the agreement of the parties.
Notwithstanding the provisions of paragraph (1) of this Article, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts, or the parties, or to conduct inspection to equipment, property or other documents.
Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.
The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such agreement, the arbitral tribunal shall determine the language or languages to be used in the proceedings.
The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into the language or languages agreed upon by the parties or determined by the arbitral tribunal.
Within the period of time agreed by the parties of determined by the arbitral panel, the claimant shall state the facts supporting his claim, the points at issue and the relief of remedy sought, and the respondent shall state his defense in respect of these particulars, unless the parties have otherwise agreed as to the required elements of such statements. The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.
Unless otherwise agreed by the parties, either party may amend or supplement his claim or defense during the course of the arbitral proceedings, unless the arbitral panel considers it inappropriate to allow such amendment, having regard to the delay in making it.
Subject to any contrary agreement by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials. However, unless the parties have agreed that no hearings shall be held, the arbitral tribunal shall hold such hearings at an appropriate stage of the proceedings, if so requested by a party.
The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of materials, goods, other property or documents.
All statements, documents or other information supplied to the arbitral tribunal by one party shall be communicated to the other party. Also, any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties.
Unless otherwise agreed by the parties, if, without showing sufficient cause,
Unless otherwise agreed by the parties, the arbitral tribunal,
Unless otherwise agreed by the parties, if a party so requests, or if the arbitral tribunal considers
it necessary, the expert shall, after delivery of his written or oral report, participate in a hearing, at which the parties have the opportunity to put questions to him and to present expert witnesses to testify on the points at issue.
The arbitral tribunal, or a party with the approval of the arbitral tribunal, may request from a competent Court (Commercial, or Appeal, or Supreme) assistance in taking evidence. The Court (Commercial, or Appeal, or Supreme) may execute the request within its competence and according to its rules on taking evidence.
MAKING OF AWARD AND TERMINATION OF PROCEEDINGS
The Arbitral Tribunal shall apply applicable rules during the arbitration proceedings:
In arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal may be made by a majority of all its members.
Upon request by both parties, prior to commencement of formal arbitration proceedings, the arbitral tribunal may confer with the parties for the purpose of exploring whether the possibility exists of a voluntary settlement of the parties' dispute:
The arbitral tribunal form and content of award shall contain as follows:
The arbitral Proceedings are terminated by the final award, an agreed settlement, or by an order of the arbitral tribunal in accordance with Paragraph (2) of this Article.
The arbitral tribunal shall issue an order for the termination of the arbitral Proceedings when:
The mandate of the arbitral tribunal terminates with the termination of the arbitral proceedings, subject to the provisions of Articles 41 and 42(4) of this Law.
The correction and interpretation of award shall determine as follows:
(1) and (3) of this Article.
RECOURSE, RECOGNITION, AND ENFORCEMENT OF ARBITRAL AWARD
RECOURSE INSTITUTION, RECOGNITION, AND ENFORCEMENT OF ARBITRAL AWARD
The jurisdiction over recourse, recognition, and enforcement of arbitral award shall rest with the Appellate Court of the Kingdom of Cambodia.
The Supreme Court of Cambodia shall be the final jurisdiction to try counter claim of the party who is not satisfying with the decision of the Appellate Court within fifteen (15) days.
RECOURSE AGAINST ARBITRAL AWARDS
follows:
The party may file an application for setting aside as exclusive recourse against arbitral award as
RECOGNITION AND ENFORCEMENT OF AWARDS
An arbitral award, irrespective of the country in which it was made, shall be recognized as binding and, upon application in writing to the competent court, shall be enforced subject to the provisions of this Article and Article 44 of this Law.
The party relying on and award or applying for its enforcement shall supply the duty authenticated original award or a duly certified copy thereof, and the original arbitration agreement referred to in Article 7 of this Law or a duly certified copy thereof. If the award or agreement is not made in Khmer, the party shall supply a duly certified translation thereof into Khmer.
Recognition or enforcement of an arbitral award, irrespective of the country in which it was made, may be refused only:
If an application for setting aside or suspension of an award has been to a court referred to in paragraph (1)(e) of this Article, the court where recognition or enforcement is sought may, if it consider it proper, adjourn its decision and may also, on the application of the party claiming recognition of the award, order the party to provide appropriate security.
Any provisions in commercial arbitration sector that are contrary to this Law shall be abrogated.
This Law is enacted by the National Assembly of the Kingdom of Cambodia on the 6th of March 2006
at its 4th Session of the 3rd Legislature.
Signed and Sealed at Phnom Penh March 7th, 2006 First Vice President
Samdech HENG SAMRIN
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