Arbitration in Bhutan: A Primer

Abstract

This guidebook was collaboratively written by the first class of students to enter into the Jigme Singye Wangchuck School of Law (JSW Law), Bhutan’s first and only law school. It was originally conceived as a classroom assignment in a course on Alternative Dispute Resolution (ADR). In that class, students explore Bhutan’s centuries-old traditions of village dispute resolution (including nangkha nangdrik and other strategies developed by elders to restore harmony between neighbors). Students also study Bhutan’s more contemporary efforts to create modern, efficient, and accessible alternatives to the formal justice system that bring its ancient traditions forward into the twenty-first century.

This guidebook describes the process of arbitration. It describes how business persons both inside and outside of Bhutan can take advantage of the services provided by the Alternative Dispute Resolution Centre (ADRC)—Bhutan’s officially designated arbitration centre. The publication is intended as a resource that the ADRC and other agencies can distribute to potential disputants who might benefit from arbitration, including those who are contractually bound to use arbitration in case of a dispute.

Arbitration combines the new with the old; efficiency with substantive rigor; and a focus on business with a concern for healthy and constructive relationships. The existence of a strong arbitration system is considered essential for the conduct of big business transactions in the 21st century, but can also be a significant asset for small and medium-sized enterprises. Arbitration resonates with Bhutan’s traditions of resolving disputes sustainably, discretely, and in such a way that the goodwill between neighbours and business associates is kept alive. But it is also important to recognize what Arbitration as a process cannot accomplish, and where other dispute resolution strategies—including direct negotiation, nangkha nangdrik, or the formal court system—might better serve the interests of disputing parties.

Keywords: Arbitration, Bhutan, ADR