Contracts with Indian parties are governed by the Indian Contract Act 1872 unless another law is chosen. Because Bhutanese judgments cannot be executed directly in India, and Bhutan is not known to be a party to the New York Convention, an arbitration clause with an Indian seat, or a seat in a Convention country, is usually the safest way to make the contract enforceable.
- Document route
- Bhutanese certification, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
- Time difference
- IST is 30 minutes behind Bhutan all year
- Core law
- Indian Contract Act 1872
- Foreign awards
- Part II, Arbitration Act 1996
Commercial Contracts from Bhutan: how it works
We draft and review supply, distribution, construction and engineering contracts, and agreements for hydropower and infrastructure work. We focus on payment terms and security, quality and inspection, delays and liquidated damages, transit and customs at the border, and how disputes will be decided.
When a dispute arises, we review the contract and correspondence, send notices, and advise whether to negotiate, mediate, arbitrate or sue in India. We also make sure the contract is properly stamped in India before it is relied on.
What clients in Bhutan should know
- Seat arbitration in India or a New York Convention country to keep the award enforceable.
- Set out who bears the risk of goods during transit across the border.
- Ask for bank guarantees for advances paid to Indian contractors.
Step by step from Bhutan
Video consultation
A call at a time that suits Bhutan, after we have read your documents.
Documents signed in Bhutan
Bhutanese certification, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Bhutan where needed.
The full guide
This page covers what changes when you are in Bhutan. For the law, the documents and the step-by-step procedure, read our main page on Commercial Contracts, or see all services for clients in Bhutan and the Doing Business in India practice area.
Questions from clients in Bhutan
Why not choose Bhutanese courts?
A Bhutanese judgment cannot be executed directly in India, so you may have to sue again.
Can you review the Indian contractor's standard form?
Yes, we mark up the risky clauses and explain them.
Do contracts need to be stamped in India?
If they will be relied on in India, yes; unstamped contracts can be impounded.