Public Policy And Good Morals: Setting Aside Arbitral Awards In Thailand

Introduction

The grounds on which a Thai court may set aside an arbitral award are set out in section 40 of the Arbitration Act B.E. 2545 (2002) ("Arbitration Act"). Although the Arbitration Act is silent on whether a foreign arbitral award (i.e. an award issued outside Thailand) can be set aside by a Thai court, the Thai Supreme Court has recently made clear in several of its decisions that the Arbitration Act is based on the UNCITRAL Model Law. Thus, the power of the Thai courts to set aside arbitral awards is limited to awards issued in Thailand.

While there are multiple grounds on which arbitral awards may be set aside, the ground that enforcement of the award would be contrary to public policy or good morals is most often relied on by the parties seeking to set aside an award, and yet remains less defined than other grounds.