Arbitration is a widely recognized method for resolving disputes outside of traditional court systems. To ensure the smooth functioning of arbitration proceedings, clear rules and guidelines are essential. Article 2 of the NCAC Arbitration Rules at hand provides valuable insights into the scope and application of these arbitration rules. In this article, we will delve into the details of Article 2 and explore each section to gain a comprehensive understanding of its implications.

Section 2.1 of Article 2 sets the foundation by establishing the general rule for the application of the arbitration rules. It states that the rules will come into play if the parties mutually agree to refer their disputes to arbitration administered by NCAC or to arbitration under the Rules of NCAC. This requirement ensures that both parties consent to accept NCAC and its rules as the framework for arbitration.

However, Section 2.1(b) introduces exceptions to the general rule. It explains that the parties may choose to administer their arbitration under different rules if they have agreed upon such an arrangement. The Appointment and Proceedings Committee holds the authority to accept this alternative approach. Additionally, if the parties have designated NCAC as the appointing authority or have requested specific administrative services without subjecting the arbitration to the provisions contained in the Rules, the general rule will not apply.

Section 2.1(c) clarifies the implications of Section 2.1(b). When the exceptions mentioned earlier apply, the parties are considered to have agreed to all necessary measures that NCAC may undertake to ensure compatibility between the agreed-upon rules and the structure of NCAC. This provision aims to facilitate a harmonious integration of different arbitration frameworks.

Section 2.2 highlights the effective date of the Rules. The Rules shall come into effect on the date set forth under Article 74.2, which is from 28 June 2021 onwards. Unless the parties agree otherwise, the Rules will apply to any arbitration falling within the scope of Section 2.1(a) if the General Secretariat receives the Notice of Arbitration on or after the specified date.

Addressing the potential conflict between the Rules and the governing law of the arbitration, Section 2.3 establishes a hierarchy. If any provision of the Rules contradicts a mandatory provision of the Law on Commercial Arbitration of Cambodia (applicable when the arbitration is seated in Cambodia) or any other governing law (applicable when the arbitration is seated outside Cambodia), the mandatory provision of the governing law prevails. This provision ensures consistency and compliance with the relevant legal framework.

Section 2.4 emphasizes the parties’ flexibility within the arbitration process. It states that if both parties agree, they may derogate from specific provisions of the Rules as long as such derogation is permitted within the framework of the Rules. This provision allows parties to tailor the arbitration process to suit their unique circumstances and preferences better.

Article 2 of the NCAC Arbitration Rules plays a crucial role in defining the scope and application of NCAC arbitration rules. By understanding each section, we gain insight into the conditions under which these rules apply, exceptions to their application, effective dates, resolution of conflicts with governing laws, and the possibility of mutual derogation. Familiarity with Article 2 is essential for parties engaged in NCAC arbitration proceedings, enabling them to navigate the arbitration process effectively and ensuring a clear understanding of the rules governing their dispute resolution.