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Section 18
Substantive law to be adopted by the arbitrator
  (1) Except as otherwise provided in the contract, the substantive law to be adopted by the arbitrator shall be the law of Nepal.
(2) The arbitrator can settle the dispute in accordance with the principle of justice and conscience (ex aqua et wono) or natural justice (amiable compositor) only when the parties have given their clear authority.
(3) Regardless of what is written elsewhere in this section, the arbitrator shall settle the dispute according to the terms of the relevant contract and while settling the dispute shall also pay attention to the business practices (usages) applicable to the related transactions.