Thailand
Cambodia: New commercial arbitration rules enter into force
The National Commercial Arbitration Centre of the Kingdom of Cambodia (NCAC), an independent not-for-profit organisation, will implement its new rules and fee structures today.
The organisation has seen and administered 27 proceedings worth approximately $80 million since its founding. The new rules aim to make the NCAC a more viable solution for businesses to settle issues out of court.
NCAC President Bun Youdy told Khmer Times that real estate and construction sector proceedings were brought to the centre the most, followed by banking, finance and international trade issues.
“With the adoption of the ‘New Rules’, NCAC has achieved a significant milestone to improve effectiveness of commercial dispute resolution through arbitration in accordance with international standard[s]. This will certainly contribute to the betterment of [the] business environment in the Kingdom of Cambodia,” Youdy said.
“The NCAC first issued its arbitration rules in 2014. There [are] a lot of developments in the international scene with respect to commercial arbitration. With the aim of staying up to date with such developments and [better serving] its users, NCAC embarked on a process to amend its first arbitration rules,” he added.
The new rules make it easier for the centre to provide swift awards to parties in dispute. NCAC has also instituted a timeline that will ensure that the parties in dispute can anticipate a solid timeline for an award being issued.
Parties may request an “expedited procedure” if the sum in dispute does not exceed $3 million in cases that are of “exceptional urgency”. The procedure would see an award being made within 270 days from when a tribunal is constituted.
The rules also allow for documents-only proceedings, omitting the need for oral hearings, witnesses or depositions, which will expedite the process even further.
Parties may also apply for interim measures from an emergency arbitrator whose decision on the dispute will be made within 15 days of being appointed.
“Since [this] is the first time that we introduce the expedited procedure, we want to make it reasonable and implementable. [The] NCAC may consider to further shorten [the] timeframe later when everyone involved [NCAC, arbitrator and counsels] have more experience in dealing with this procedure,” added Youdy.
Under the reforms, users will also be able to use video conferencing or teleconferencing means during proceedings under the guidelines.
Earlier this year, the NCAC launched its first virtual hearing using Zoom, with approximately 30 participants, including a three-member tribunal. It allowed the parties and their legal counsels from Hungary, China and Japan to hear evidence despite the pandemic.
The virtual hearing allowed the parties to cut expenses related to the hearings such as travel and accommodation.
Source: https://www.khmertimeskh.com/50882539/new-commercial-arbitration-rules-enter-into-force/