The validity of arbitration awards in resolving commercial disputes

Arbitration awards play a key role in resolving commercial disputes in Vietnam. Especially when commercial dispute resolution by arbitration is becoming a popular choice thanks to its flexibility and efficiency. When parties elect arbitration, they agree to abide by the final award. In this article, Long Phan will analyze in detail the legal aspects related to the validity of commercial arbitration awards.

Definition of arbitration awards

The arbitration awards is the final decision of the Arbitration Council on the dispute. This is stipulated in Clause 10, Article 3 of the Law on Commercial Arbitration 2010. The arbitration awards resolves the entire content of the dispute, ending the arbitration proceedings.

The arbitration awards represents the decision of the Arbitration Council on the disputed issues between the parties. The content of the award includes the introduction, content of the dispute, arguments and decision of the Arbitration Council.

Principles of arbitration awards

Article 60 of the Law on Commercial Arbitration 2010 stipulates the principles of making arbitration awards. Accordingly, the Arbitration Council applies the principle of majority voting to make an award. This process ensures democracy and objectivity in resolving trade disputes.

In case the voting does not reach a majority, the Chairman of the Arbitration Council has the right to decide. The arbitration awards is then made according to the opinion of the Chairman. This regulation helps avoid deadlock in the decision-making process and ensures the effectiveness of arbitration procedures.

This principle demonstrates the important role of the Chairman of the Arbitration Council. The Chairman not only runs the proceedings but is also responsible for making the final decision in case a consensus cannot be reached. This requires the Chairman of the Arbitration Council to have extensive experience, expertise and the ability to make fair judgments.

Regulations on the validity of arbitral awards

Subjects of application of arbitral awards

The arbitration awards is binding on the disputing parties. The parties directly involved in the dispute are obliged to implement the judgment. Applicable subjects include plaintiffs, defendants and parties with related rights and obligations identified in the judgment.

Arbitral awards are also valid against civil enforcement agencies. This agency is responsible for organizing the enforcement of arbitral awards according to the provisions of law on enforcement of civil judgments. In case of necessity, the enforcement agency can apply enforcement measures.

Competent state agencies must also respect and recognize the validity of the arbitration awards. The court may not re-accept a dispute that has been resolved by arbitration, except in cases where the award is annulled. This demonstrates the finality of the arbitration awards.

The time when the arbitration awards takes effect

According to Article 61 of the Law on Commercial Arbitration 2010, the arbitration awards takes effect from the date of issuance. This point is clearly stated in the conclusion of the judgment. From this point on, the judgment is legally valid and enforceable for the parties.

The validity of an arbitral award does not depend on whether the parties agree or not. Even if a party is not satisfied with the award, they are still obligated to enforce it. However, the parties have the right to request the Court to consider annulling the arbitration awards within the legal time limit.

Article 61 of the Law on Commercial Arbitration 2010 stipulates that the arbitration awards is final. This means the ruling takes effect immediately and cannot be appealed. The parties must execute the judgment immediately after receiving it, unless the judgment is annulled according to the provisions of law.

Consulting services for dispute resolution by arbitration

Long Phan provides arbitration dispute resolution consulting services including assistance in drafting and reviewing arbitration agreements. Experts with extensive experience in commercial arbitration will assist clients in developing appropriate arbitration clauses. The arbitration agreement needs to ensure legality, clarity and enforceability.

Reviewing the arbitration agreement helps detect and correct inappropriate points. Experts will check the validity of the agreement according to legal regulations. Issues such as the scope of the dispute, the place of arbitration, and applicable law need to be carefully considered.

With a team of experienced and dedicated experts, Long Phan provides consulting services and supports customers throughout the arbitration process.

Our Services include:

• Consulting on appropriate dispute resolution strategies. This includes preparing documents, gathering evidence and building legal arguments;
• Attend arbitration sessions with clients. Our experts present arguments, confront opposing sides and protect the rights of our clients. In addition, we also support customers in negotiating with the other party if necessary;
• Support for enforcement of awards: in case of necessity, experts will advise on procedures for requesting the Court to recognize and enforce arbitration awards. We also assist clients in protecting their rights if the judgment is requested to be annulled.

The arbitration awards has final legal effect and is binding on the parties participating in the commercial arbitration proceedings. Understanding the regulations on the validity and enforcement of arbitration awards helps businesses protect their rights when resolving disputes. Long Phan, with a team of experienced experts, is ready to support you throughout the entire dispute resolution process at arbitration. Please contact us via Hotline 0906.735.386 for in-depth advice and to protect your rights in all commercial disputes.