Cases where the Court annuls commercial arbitration awards

The court annulled the commercial arbitration award in certain cases to ensure fairness and protect the legal rights of the parties. This can happen when there is a serious violation of due process, or if the judgment is contrary to basic principles of law. The article below will provide specific information about cases where the Court annuls an arbitration award.

Things to know about the validity of commercial arbitration awards

Pursuant to Clauses 2 and 5, Article 61 of the Law on Commercial Arbitration 2010, regarding the validity of commercial arbitration awards, there are the following:

• Even if an Arbitrator does not sign the arbitration award, the Chairman of the Arbitration Council must record this in the arbitration award and clearly state the reason. In this case, the arbitration award remains valid.
• The effective date of an arbitration award is from the date of issuance, therefore the arbitration award is final.

Grounds for canceling commercial arbitration awards

Pursuant to Clause 2, Article 68 of the Law on Commercial Arbitration 2010, the grounds for canceling a commercial arbitration award are:

• There is no arbitration agreement or the arbitration agreement is invalid;
• The composition of the Arbitration Council and arbitration procedures are inconsistent with the agreement of the parties or contrary to the provisions of this Law;
• The dispute is not under the jurisdiction of the Arbitration Council; In case the arbitration award contains content that does not fall within the jurisdiction of the Arbitration Council, that content shall be annulled;
• The evidence provided by the parties on which the Arbitral Council based its decision was fake; The arbitrator receives money, property or other material benefits from a disputing party, affecting the objectivity and fairness of the arbitration award;
• The arbitration award is contrary to the basic principles of Vietnamese law.

Is the court automatically allowed to cancel an arbitration award when there are grounds for cancellation? Who has the right to request cancellation of a commercial arbitration award?

The court cannot automatically cancel an arbitration award when there is a basis for cancellation, based on Clause 1, Article 69 of the Law on Commercial Arbitration 2010. The court will cancel on condition that there is a request from either party.

The right to request cancellation of a commercial arbitration award belongs to the plaintiff or defendant in the arbitration case, based on Clause 1, Article 68 of the Law on Commercial Arbitration 2010.

Form to request cancellation of an arbitration award

A request to annul an arbitration award is prepared by the party requesting the Court to annul the arbitration award. Currently, in the legal documents on arbitration, there is no available form for a request to cancel an arbitration award. You can refer to the form requesting the cancellation of the arbitration award here:

>> View and download the request form to cancel the arbitration award here.

Consulting services on issues related to Court annulment of commercial arbitration awards

Requesting to cancel a commercial arbitration award is a common behavior when there is an arbitration award, no matter how carefully the parties have agreed or how transparent the dispute resolution process at arbitration is, it only limits the risk of a partial judgment being annulled. Understanding that, Long Phan is always ready to support you with the following comprehensive service package:

• Consulting and analyzing grounds for annulment of arbitration awards in each specific case.
• Provide application forms and draft applications to request cancellation of arbitration awards.
• Directions for preparing documents, orders and procedures to request the Court to cancel the arbitration award.
• Participate in the meeting at the Court on the day of considering the cancellation request.
• Representing you to work with the opposing party, supporting settlement and negotiation.
• Proposing solutions to minimize damage when an arbitration award is at risk of being canceled.

During the process of participating in litigation in commercial arbitration, if you have any questions related to commercial mediation or arbitration proceedings; or need advice or support with other legal procedures, please contact Hotline: 0906735386. Long Phan will support you quickly and enthusiastically.