Procedures for cancellation of an arbitral award

In the current forms of commercial dispute resolution, commercial arbitration with its advantages is the optimal measure to solve commercial-related issues. To know how to cancel a commercial arbitration award, we will provide the following analysis:

THE ENFORCEMENT OF FOREIGN ARBITRAL AWARDS IN THE NETHERLANDS - Caland  lawyers

An arbitral award shall be canceled in any of the following cases

A party to an arbitration proceeding may apply to a competent court to cancel the arbitral award on the grounds provided for in Article 68.2 of the Commercial Arbitration Law. It means that the arbitral award is canceled in one of the following cases:

  • There is no arbitration agreement or the arbitration agreement is invalid;
  • The arbitration council’s composition or procedures of arbitral proceedings is/are incompliant with the parties’ agreement or this Law;
  • The dispute falls beyond the arbitration council’s jurisdiction: when an arbitral award contains the details falling beyond the arbitration council’s jurisdiction, such details shall be canceled;
  • The evidence provided by the parties on which the arbitration council bases to issue the award is counterfeit: an arbitrator receives money, assets or other material benefits from one disputing party, thus affecting the objectivity and impartiality of the award;
  • The award contravenes the fundamental principles of Vietnamese law.

Requests for cancellation of an arbitral award include

A written request for cancellation of an arbitral award must contain:

  • Dale of making;
  • Name and address of the requester;
  • Request and grounds for cancellation of the award.

A written request must be enclosed with the following papers:

  • Original or certified copy of the arbitral award;
  • Original or certified copy of the arbitration agreement.
  • Enclosed papers in a foreign language shall be translated into Vietnamese and such translations shall be legally certified.

Time limit for requesting cancellation of the arbitral award is 30 days from receiving the arbitral award. If a party has sufficient grounds for evidencing that the arbitration council has issued the award falling into any of the cases specified in Clause 2, Article 68 of this Law. it may file a request with the competent court for cancellation of such award. Such a request must be enclosed with documents and evidence proving that such request is grounded and lawful. When a request is lodged beyond the set time limit due to force majeure circumstances, the period in which such circumstances exist will not be included in the time limit for requesting cancellation of an arbitral award.

Procedures, deadlines and issuance of a decision to annul an arbitral award

  • After accepting the application for cancellation of the arbitral award, the competent court shall immediately notify the arbitration center or the arbitrators of the ad hoc arbitration council, the disputing parties and the procuracy of the same level.
  • Within 7 working days after accepting a written request, the court president shall designate an examination council which is composed of three judges, including one to act as the chair as assigned by the court president.
  • Within 30 days after being designated, the examination council shall hold a meeting to examine the written request for cancellation of an arbitral award. 
  • The court shall, within 7 working days before opening the meeting, transfer the dossier to the procuracy of the same level for study before attending this meeting. Upon the expiration of this lime limit, the procuracy shall return the dossier to the court for opening a meeting to examine the written request.
  • After examining the written request and enclosed documents and hearing opinions of the summoned persons, if any. and after the procurator presents the procuracy’s opinions, the council shall discuss and make a decision by majority vote.
  • Within 05 working days after issuing a decision, the court shall send it to the parties, the arbitration center or ad hoc arbitrator and the procuracy of the same level.

If the examination council issues a decision canceling the arbitral award, the parties may reach a new agreement to bring their dispute to arbitration or any of them may initiate a lawsuit at court. If the examination council does not cancel the arbitral award, such award shall be enforced. In all cases, the time for dispute settlement at arbitration and for carrying out procedures to cancel an arbitral award at court will not be included in the statute of limitations for initiating a lawsuit. The court’s decision is final and effective for enforcement.

Above are some of our company’s analyses on this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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