Dispute Settlement Procedures By Commercial Arbitration

When disagreements arise between parties involved in a business deal, it is crucial to have efficient and effective dispute resolution mechanisms in place. One such mechanism gaining prominence in the corporate world is commercial arbitration. In this article, we will explore the concept of commercial arbitration and its significance as a dispute settlement procedure. For more detail, please contact Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline: (+84) 903.419.479

1. What is commercial arbitration? Conditions for dispute settlement by arbitration 

• Commercial arbitration is a method of dispute settlement agreed by the parties and conducted in accordance with the provisions of the Law on Commercial Arbitration 2010 .
• Conditions for dispute settlement by arbitration:
  • Disputes shall be resolved by arbitration if the parties have an arbitration agreement. The arbitration agreement may be made before or after a dispute occurs.
  • Where a party to the arbitration agreement being an individual dies or loses act capacity, the arbitration agreement will still be valid for that person heir or legal representative, except for cases where the parties to the arbitration agreement are individuals. otherwise agreed by the parties.
  • Where one party to the arbitration agreement being an organization must terminate its operation, go bankrupt, dissolve, consolidate, merge, divide, separate or transform the form of organization, the arbitration agreement will still be valid. valid for the organization receiving the rights and obligations of that organization, unless otherwise agreed by the parties.

​Dispute Settlement Procedures By Commercial Arbitration

2. Disputes to be settled by Commercial Arbitration

The arbitrator jurisdiction to settle disputes is as follows:

• Disputes between the parties arising from commercial activities.
• Disputes arising between parties in which at least one party has commercial activities.
• Other disputes between the parties as prescribed by law shall be resolved by arbitration.

3. Dispute settlement procedures by commercial arbitration

The settlement of disputes by commercial arbitration is carried out according to the following order of procedures:

3.1. Submit the petition and accompanying documents

• In case of dispute settlement at the Arbitration Center, the plaintiff must make a petition and send it to the Arbitration Center. Where a dispute is settled by ad hoc arbitration, the plaintiff must make a petition and send it to the respondent.
• The petition includes the following contents:
  • Date, month and year of making the lawsuit petition;
  • Names and addresses of the parties; name and address of the witness, if any;
  • Summary of content of the dispute;
  • Grounds and evidences for initiating the lawsuit, if any;
  • The specific requirements of the plaintiff and the value of the dispute;
  • Name and address of the person selected by the plaintiff to be an arbitrator or requested to appoint an arbitrator.
• Notice of petition: if the parties do not otherwise agree or the arbitration center  procedural rules do not provide otherwise, then:

Within 10 days from the date of receipt of the lawsuit petition, accompanying documents and the payment of the arbitration fee advance, the arbitration center must send to the respondent a copy of the plaintiff petition and other supporting documents. data as prescribed in Clause 3, Article 30 of the Law on Commercial Arbitration 2010 .

• The statute of limitations for initiating a lawsuit for dispute settlement by arbitration: unless otherwise provided for by specialized law, the statute of limitations for initiating a lawsuit according to arbitration procedures is 2 years from the time when legitimate rights and interests are infringed. .

(According to Article 30, Article 32 and Article 33 of the Law on Commercial Arbitration 2010 )

3.2. Defendant filed a defense

• For a dispute to be settled at an arbitration center, if the parties do not otherwise agree or the arbitration center procedural rules do not provide otherwise, within 30 days from the date of receipt If the petition and accompanying documents are obtained, then: The respondent must submit to the Arbitration Center a copy of the self-defence. At the request of a party or parties, this time limit may be extended by the Arbitration Center based on the specific circumstances of the case.
• The content of the self-defense copy includes:
  • Date, month and year to make the self-defense copy;
  • Name and address of the defendant;
  • The basis and evidence of self-defense, if any;
  • Name and address of the person chosen by the respondent to be an arbitrator or requested to appoint an arbitrator.
• For a dispute to be settled by ad hoc arbitration, unless otherwise agreed by the parties, within 30 days from the date of receipt of the plaintiff petition and accompanying documents: The Respondent must send to the Plaintiff and the Arbitrator a copy of the defense, the name and address of the person he or she has chosen to act as the Arbitrator.

(According to Clause 1, Clause 2 and Clause 3, Article 35 of the Law on Commercial Arbitration 2010 )

3.3. Establishment of the Arbitration Council 

• The composition of the Arbitration Council may include one or more Arbitrators as agreed by the parties.
• If the parties do not agree on the number of arbitrators, the arbitration council shall consist of three arbitrators.

(According to Article 39 of the Law on Commercial Arbitration 2010 )

3.4. Open a dispute resolution session

• Dispute settlement meetings shall be conducted in public, unless otherwise agreed by the parties.
• The parties may directly or authorize a representative to attend the meeting to resolve the dispute; have the right to invite witnesses and defend their legitimate rights and interests.
• In case of agreement of the parties, the Arbitral Tribunal may allow other persons to attend the dispute settlement meeting.
• The order and procedures for conducting a dispute settlement meeting shall be prescribed by the arbitration center rules of arbitration; for ad hoc arbitration as agreed by the parties.

(According to Article 55 of the Law on Commercial Arbitration 2010 )

3.5. Reconciliation

• At the request of the parties, the arbitral tribunal shall conduct conciliation so that the parties can reach an agreement on the settlement of the dispute. 
• When the parties reach an agreement on the settlement of the dispute, the arbitration council shall make a record of successful conciliation signed by the parties and certified by the arbitrators.
• The arbitral tribunal shall issue a decision to recognize the agreement of the parties. This decision is final and has the same validity as an arbitral award.

(According to Article 58 of the Law on Commercial Arbitration 2010 )

3.6. The arbitral tribunal makes a decision

• The arbitral tribunal shall issue an arbitral award by voting on the principle of majority.
• In case the vote fails to reach a majority, the arbitral award shall be made according to the opinion of the Chairman of the Arbitral Council.

(According to Article 60 of the Law on Commercial Arbitration 2010 )

Thus, in the field of commerce, if an enterprise has an agreement on arbitration when settling a dispute, that settlement shall be carried out in accordance with the legal order and procedures on dispute settlement by commercial arbitration. commercial.

Dispute Settlement Procedures By Commercial Arbitration

Commercial arbitration has emerged as a preferred method of dispute resolution in the business world due to its efficiency, confidentiality, expertise, flexibility, and finality. By incorporating arbitration clauses into contracts and embracing the advantages of this process, businesses can navigate disputes more effectively, protect their interests, and maintain productive commercial relationships. Please contact immediately Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for legal advice and support.

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