CANCELLATION OF THE ARBITRATION AWARD UNDER VIETNAMESE LAW
Within 30 days of receiving the arbitral award, if one party has sufficient grounds to prove that there are bases for annulling the arbitral award, they have the right to submit a request for the annulment of the arbitral award.
I. Legal Basis
An arbitral award, under Vietnamese law, is a significant means of resolving commercial disputes. However, if procedural violations or infringements of the parties’ rights occur, the award may be annulled. The annulment of arbitral awards in Vietnam is governed in detail by the Law on Commercial Arbitration 2010 and Resolution No. 01/2014/NQ-HDTP. These documents specify the circumstances and conditions under which the court may annul an arbitral award.
Under the Law on Commercial Arbitration 2010, several reasons may lead to the annulment of an arbitral award. One such reason is the absence of a valid arbitration agreement, meaning that the agreement does not meet the necessary conditions in terms of form and content. Furthermore, the award may be annulled if the arbitrator lacks jurisdiction or violates legal regulations, especially in cases of bias or unfair handling of the case. Violations of fundamental principles of procedural law, such as improper notification to relevant parties, also constitute grounds for annulment. If an award contravenes fundamental principles of Vietnamese law, such as protecting the basic rights of citizens, the court may consider annulling it.
Resolution No. 01/2014/NQ-HDTP provides detailed guidance on applying the provisions of the Law on Commercial Arbitration 2010. The resolution emphasizes that annulment of an arbitral award is not a review of the dispute’s substance but rather an assessment of the legality of the process and award. Importantly, the court does not interfere with the content of the award unless it severely violates fundamental legal principles.
Regarding the procedure for requesting annulment, parties must file a petition within 30 days of receiving the arbitral award. The court will review the petition within 60 days and may request additional evidence if necessary. If the court determines that the award violates legal provisions, it will issue a decision to annul the award.
Overall, the annulment of arbitral awards in Vietnam is conducted to ensure legality and protect the rights of the disputing parties. These strict legal provisions aim to promote transparency and stability in commercial dispute resolution in Vietnam.
II. Grounds for Annulment of Arbitral Awards
Arbitral awards are the result of resolving disputes through commercial arbitration. However, under certain circumstances, they may be annulled by the court for violating specific provisions of Vietnamese law. The primary legal basis for annulment is outlined in the Law on Commercial Arbitration 2010, which ensures transparency and fairness in the arbitration process.
Firstly, an arbitral award can be annulled if there is no valid arbitration agreement or if the agreement is deemed invalid. The arbitration agreement serves as the legal foundation for the parties’ consent to resolve disputes through arbitration. If this agreement is absent or fails to meet validity requirements, the award issued based on it is considered void.
Another ground for annulment is when the composition of the arbitral tribunal or the arbitration process does not comply with the agreement between the parties or violates the provisions of the Law on Commercial Arbitration 2010. Arbitration proceedings must be conducted strictly in accordance with the law; otherwise, the award may be annulled.
Additionally, if the dispute falls outside the jurisdiction of the arbitral tribunal, any award relating to matters beyond its jurisdiction may be annulled. In such cases, issues outside the tribunal’s scope will be reviewed and excluded.
Using fraudulent evidence during the dispute or arbitrators accepting bribes from one of the parties are also grounds for annulment. These actions severely undermine the fairness and objectivity of the arbitration process.
Lastly, an arbitral award may be annulled if its content violates the fundamental principles of Vietnamese law. This ensures that arbitral awards do not conflict with the legal system or core values protected by the law.
III. Jurisdiction for Annulment of Arbitral Awards
Under Vietnamese law, the provincial-level People’s Court is the sole authority responsible for reviewing and deciding on the annulment of arbitral awards. The court’s jurisdiction is determined by the location where the arbitral tribunal conducted dispute resolution procedures or issued the award. If the tribunal operates abroad, jurisdiction falls to the court where the respondent resides or is headquartered in Vietnam. If the respondent also resides or is headquartered abroad, jurisdiction lies with the court where the petitioner resides or is headquartered. These regulations ensure legal clarity and protect the rights of parties involved in arbitration-related disputes.
IV. Fees for Requesting Annulment of Arbitral Awards
According to Resolution No. 326/2016/UBTVQH14, the fee for requesting the court to review an arbitral tribunal’s award is VND 500,000. When filing a petition for annulment at the provincial-level People’s Court, the requesting party must pay the prescribed fee. This fee covers the cost for the court to process and review the case. The specific fee is determined based on the regulations on court fees and depends on the nature and scope of the annulment request.
Additionally, for complex and prolonged cases, the requesting party may incur additional costs, such as attorney fees or expenses for evidence collection. These fee provisions aim to ensure fairness, transparency, and prevent the misuse of annulment requests.
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