Commercial Contract Dispute Resolution in Thailand – THE THAI ARBITRATION INSTITUTE – Part 1: Procedure & Timing

The Thai Arbitration Institute (TAI) — currently under the auspices of the Thai government’s judiciary — is the most commonly chosen institutional arbitration service provider by commercial parties to administer their contractual dispute arbitrations seated in Thailand. Unless the parties agree to deviate from the TAI Rules — and somewhat controversially — “with the consent of the Director of the Alternative Dispute Resolution Office,” the TAI Rules will apply to any arbitration proceeding under its administration. In Part 1 of this article we summarize the procedure and timing of a TAI arbitration.

Procedure

1. The first step is for the claimant to file a “statement of claim” against the “respondent” together with a payment of preliminary advance on costs to the TAI.
2. The TAI then sends the statement of claim to the respondent.
3. The respondent may file a statement of defense (and a counterclaim, if any) within fifteen days of receipt of the statement of claim.
4. The TAI sends the statement of defense (and counterclaim, if any) to the claimant.
5. The claimant may file a defense to the counterclaim within fifteen days of receipt.
6. The TAI encourages the parties to settle amicably and offers a meeting to discuss settlement. Failing that, the parties agree on the place of arbitration, language, and choice of law, if not already decided.
7. The parties nominate their arbitrator(s). Standard TAI Rules require a tribunal of one or three arbitrators:
   • Sole arbitrator: If the parties can’t agree, each nominates three names to the TAI. If none match, the TAI adds three more and sends all nine to the parties to rank by preference. The TAI appoints the most-preferred mutual candidate.
   • Three arbitrators: Each party nominates one; those two choose a third, who chairs the tribunal.
   • Note: if the number of arbitrators isn’t specified, the Act defaults to a sole arbitrator.
8. The TAI coordinates a meeting to formally appoint the arbitrator(s), settle the issues to be decided, determine procedural/evidentiary matters, and schedule proceedings.
9. The parties submit supporting documents per the schedule — usually within one to three months of the scheduling meeting.
10. A formal hearing of evidence follows, if needed — usually within four to six months of the scheduling meeting.
11. The TAI Rules require the tribunal to issue the award within 180 days of the last arbitrator’s appointment. In practice, the TAI often presents a minutes-of-meeting template waiving this deadline — not required, and parties shouldn’t agree to it unless they actually wish to.
12. Once completed, the TAI sends a copy of the award to each party.
13. If a party fails to comply, the other may petition a competent Thai court to enforce the award within three years of it becoming enforceable. Alternatively, if the arbitration didn’t comply with the Act, either party may request the court vacate the award within three months.

Timing

It generally takes nine to twenty-four months from filing the statement of claim to issuance of the final award. Complicated cases, or a dilatory respondent, can extend this further.

Enforcement of an award within Thailand, if needed, can take anywhere from a few months to several years. Notably, Thailand is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), meaning any international arbitration award administered by the TAI in Thailand is enforceable in any of the more than 150 countries that have also signed the Convention.