Each arbitration center has its own procedural rules governing the resolution of disputes. When a dispute is submitted to a particular arbitration center, the procedural rules of that center typically apply. The process of resolving disputes at an arbitration center involves several steps. TNTP will outline some of the basic steps for resolving disputes at an arbitration center in accordance with the provisions of the 2010 Law on Commercial Arbitration.
1. Submission of lawsuit filing and fees
The first step in the dispute resolution process is to file the lawsuit filing at the arbitration center, including the request for arbitration, the arbitration agreement, relevant evidence, and accompanying documents. The request for arbitration must include all necessary information as stipulated in Clause 2, Article 30 of the 2010 Law on Commercial Arbitration: the date of the claim; information about the claimant, the respondent, and any third parties with related interests or obligations; a summary of the dispute; legal grounds and evidence; the claimant’s demands; the value of the dispute; the appointed arbitrator, etc. Upon submitting the lawsuit filing, the claimant must pay all fees as required by the arbitration center.
Suppose the parties do not agree otherwise or the arbitration center does not have different regulations, within 10 days of receipt of the lawsuit filing and proof of arbitration fee payment, the arbitration center must send the respondent a copy of the lawsuit filing.
2. Submission of the statement of defence and counterclaim, fees (if any)
The respondent has the right to self-defense and file a counterclaim against the claimant regarding matters related to the dispute. If there is no other agreement between the parties or no other regulations by the arbitration center, within 30 days of receiving the lawsuit filing, the respondent must submit a statement of defence to the arbitration center. In the event of a counterclaim, the respondent must submit the counterclaim and the statement of defence simultaneously, along with the required fees according to the arbitration center’s regulations.
Within 30 days of receiving the counterclaim, the claimant must submit a statement of defence to the arbitration center.
3. Establishment of the arbitration tribunal
Once the request for arbitration is accepted, an arbitral tribunal will be formed. The tribunal may consist of one or more arbitrators, depending on the agreement between the parties and the arbitration center’s rules.
Within 30 days from the date of receiving the request for arbitration and the request to appoint an arbitrator from the arbitration center, the respondent must select their arbitrator and notify the center, or request that the chairman of the center designate an arbitrator. If the respondent fails to make a selection or request within this period, the chairman of the center will designate an arbitrator for the respondent within 7 days after the deadline.
If there are multiple respondents, they must agree on selecting an arbitrator or the appointment of an arbitrator within 30 days of receiving the request for arbitration. If no agreement is reached, the chairman of the arbitration center will designate an arbitrator for the respondents within 7 days of the deadline.
Within 15 days from the date the arbitrators are selected or designated, the arbitrators will elect a chairman of the arbitrator council. If they fail to do so within this period, the chairman of the arbitration center will designate the chairman of the arbitrator council within 7 days after the deadline.
If the parties agree that the dispute will be resolved by a sole arbitrator but fail to appoint one within 30 days from the date the respondent received the request for arbitration, the chairman of the arbitration center will designate a sole arbitrator within 15 days of receiving a request from one or more parties.
4. Mediation
At the request of the parties, the arbitral tribunal will conduct mediation to help the parties settle. If the parties agree on a resolution, the tribunal will draft a record of successful conciliation, signed by the parties and certified by the arbitrators. The tribunal will then issue a decision recognizing this agreement, which is final and has the same validity as an arbitral award. If mediation is not requested or unsuccessful, the arbitral tribunal will proceed with the arbitration hearing.
5. Conducting the hearing
Unless otherwise agreed by the parties or regulated by the arbitration center, the tribunal will decide the time and venue for holding arbitral hearings and will issue a summons to the parties at least 30 days before the hearing date.
The arbitration hearing is usually held in private unless the parties agree otherwise. The parties may attend in person or authorize a representative to attend on their behalf. They may also invite witnesses or legal representatives to protect their rights and interests. At the request of the parties, the arbitral tribunal may resolve the case based on documents, without the parties’ attendance.
The procedure for the hearing follows the rules of the arbitration center, but it must ensure that both parties have the opportunity to present their arguments, debate, and submit evidence to support their case.
If the claimant is duly summoned but fails to appear or leaves the hearing without a valid reason or the arbitral tribunal’s approval, they will be deemed to have withdrawn the request for arbitration. In this case, the tribunal will continue to resolve the dispute if the respondent requests it or has filed a counterclaim.
Similarly, if the respondent fails to attend the hearing without a valid reason or leaves without the arbitral tribunal’s consent, the arbitral tribunal will proceed with the dispute resolution based on the available documents and evidence.
6. Issuing the arbitration award
After the dispute resolution process concludes, the arbitral tribunal will issue an award. The arbitration award is decided by a majority vote. If no majority can be reached, the chairman of the arbitration council’s decision will be considered the final award.
The arbitral award may be issued at the hearing or no later than 30 days after the final hearing and will be sent to the parties immediately after issuance. This award is final and takes effect from the date of issuance. The award may only be annulled by a court under the circumstances outlined in Article 68 of the 2010 Law on Commercial Arbitration. If the obligated party does not voluntarily enforce the arbitral award, the entitled party may request that the competent enforcement agency execute the award.
The above article, “Dispute Resolution Process at the Arbitration Center” is provided by TNTP for our readers.
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