Initiation of lawsuits is a very first step in commercial arbitration. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! Our company has a commercial dispute with another company in Vietnam. We intend to bring the dispute to a commercial arbitration center. I want to ask what are regulations on Petitions and enclosed documents in commercial arbitration in Vietnam? What are regulations on Time of commencing arbitral proceedings? What are Regulations on Arbitration charge? Thanks for answering my questions!”
Legal grounds
2010 Vietnam Law on Commercial Arbitration
Regulations on Petitions and enclosed documents
– When a dispute is settled at an arbitration center, the plaintiff shall file a petition with the arbitration center. When a dispute is settled by ad hoc arbitration, the plaintiff shall make a petition and send it to the defendant.
– A petition contains:
+ Date of its making;
+ Names and addresses of the parties; names and addresses of witnesses, if any;
+ Summary of the circumstances of the dispute:
+ Grounds and evidence for initiating the lawsuit, if any:
+ Specific requirements of the plaintiff and the value of the dispute:
+ Name and address of the person whom the plaintiff selects as arbitrator or requests to be designated as arbitrator.
– Enclosed with the petition shall be the arbitration agreement and the originals or copies of relevant documents.
Time of commencing arbitral proceedings
– When a dispute is settled by an arbitration center, unless otherwise agreed by the parties, the time of commencing arbitral proceedings is the time the arbitration center receives the plaintiff’s petition.
– When a dispute is settled by ad hoc arbitration, unless otherwise agreed by the parties, the time of commencing arbitral proceedings is the time the defendant receives the plaintiff’s petition.
Regulations on notification of petitions
Unless otherwise agreed by the parties or provided by the rules of proceedings of an arbitration center, within 10 days after receiving the plaintiff’s petition, enclosed documents and arbitration charge receipt, the arbitration center shall send to the defendant copies of the petition and documents specified in Clause – Article 30 of this Law.
Statute of limitations for initiating a lawsuit for dispute settlement by arbitration
Unless otherwise provided by discrete laws, the statute of limitations according to arbitral procedures is 2 years from the time of infringement of lawful rights and interests.
Regulations on Arbitration charge
– Arbitration charge is a revenue from the provision of services for dispute settlement by arbitration. The arbitration charge covers:
+ Remuneration and travel and other expenses for arbitrators:
+ Charge for expert consultation and other assistance at the request of the arbitration council: +Administrative charge;
+ Charge for designation of the arbitration centers ad hoc arbitrators at the request of the disputing parties:
+ Charge for use of other services provided by the arbitration center.
– The arbitration charge shall be set by the arbitration center. When a dispute is settled by ad hoc arbitration, the arbitration charge shall be set by the arbitration council.
– The losing party shall bear the arbitration charge, unless otherwise agreed by the parties or provided by the rules of arbitral proceedings or allocated by the arbitration council.
Self-defense statements and the sending thereof
– A self-defense statement contains:
+ Date of making;
+ Name and address of the defendant;
+ Grounds and evidence, if any. for self-defense;
+ Name and address of the person whom the defendant selects as arbitrator or requests for designation as arbitrator.
– For a dispute to be settled at an arbitration center, unless otherwise agreed by the parties or provided by the arbitration center’s rules of proceedings, within 30 days after receiving a petition and enclosed documents, the defendant shall send to the arbitration center a self-defense statement. At the request of one party or all parties, this time limit may be extended by the arbitration center based on the particular circumstances of the case.
– For a dispute to be settled by ad hoc arbitration, unless otherwise agreed by the parties, within 30 days after receiving the plaintiff’s petition and enclosed documents, the defendant shall send to the plaintiff and arbitrator the self-defense statement and name and address of the person whom the defendant selects as arbitrator.
– When the defendant assumes that the dispute falls beyond the jurisdiction of arbitration, or there is no arbitration agreement, or the arbitration agreement is invalid or unrealizable, the defendant shall clearly indicate such in the self-defense statement.
– If the defendant fails to submit the self-defense statement under Clauses 2 and 3 of this Article, the dispute settlement will still proceed.
Regulations on Defendants’ counter-claims
– The defendant may counter-claim the plaintiff on matters related to their dispute.
– The defendant’s counter-claim shall be sent to the arbitration center. When a dispute is settled by ad hoc arbitration, such counter-claim shall be sent to the arbitration council and plaintiff. The counter-claim shall be submitted simultaneously with a self-defense statement.
– Within 30 days after receiving a counter claim, the plaintiff shall send the self-defense statement to the arbitration center. When a dispute is settled by ad hoc arbitration, the plaintiff shall send the self-defense statement to the arbitration council and defendant.
– The arbitration council that settles the plaintiff’s petition shall settle a counter-claim according to the order and procedures for settling plaintiffs’ petitions under this Law.
Withdrawal of petitions or counter-claims; modification and supplementation of petitions, counter-claims or self-defense statements
– Before the arbitration council makes an arbitral award, the parties may withdraw their petition or counter-claim.
– In the course of arbitral proceedings, the parties may modify and supplement their petition, counter-claim or self-defense statement. The arbitration council has the right to reject such modification and supplementation if seeing that it may be abused to obstruct or delay the making of an arbitral award or falls beyond the scope of the arbitration agreement applicable to the dispute.
Negotiation in arbitral proceedings
From the lime of commencing arbitral proceedings, the parties may themselves negotiate and agree to terminate the dispute settlement.
When the parties agree to terminate the dispute settlement, they may request chairman of the arbitration center to issue a decision suspending the dispute settlement.
Composition of an arbitration council
An arbitration council may be composed of one or more arbitrators as agreed by the parties.
When the parties fail to reach agreement on the number of arbitrators, an arbitration council shall be composed of three arbitrators.
Formation of an arbitration council at an arbitration center
Within 30 days after receiving a petition and request for selecting an arbitrator sent by the arbitration center, the defendant shall select an arbitrator and notify such to the arbitration center or request the arbitration center’s chairman to designate an arbitrator; otherwise, within 7 days after the expiration of the time limit specified in this Clause, the arbitration center’s chairman shall designate an arbitrator for the defendant;
For a dispute involving many defendants, within 30 days after receiving a petition sent by the arbitration center, the defendants shall agree to select an arbitrator or to request designation of an arbitrator. If the defendants cannot select an arbitrator, within 7 days after the expiration of the time limit specified in this Clause, the arbitration center’s chairman shall designate an arbitrator for the defendants;
Within 15 days after being selected by the parties or designated by the arbitration center’s chairman, the arbitrators shall elect another arbitrator as the chairman of the arbitration council. Past this time limit, if this election cannot take place, within 7 days the arbitration center’s chairman shall designate the chairman of the arbitration council:
When the parties agree that their dispute shall be settled by a sole arbitrator but fail to select such arbitrator within 30 days after the defendant receives a petition, the arbitration center’s chairman shall, at the request of one party or all parties and within 15 days after receiving such request, designate a sole arbitrator.
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Frequently asked questions
If the examination council issues a decision canceling the arbitral award, the parties may reach new agreement to bring their dispute to arbitration or any of them may initiate a lawsuit at court.
In all cases, the time for dispute settlement at arbitration and for carrying out procedures to cancel an arbitral award at court will not be included in the statute of limitations for initiating aquestions.
In case the disputing parties have reached an arbitration agreement but one party initiates a lawsuit at a court, the court shall refuse to accept the case, unless the arbitration agreement is invalid or unrealizable.
Conclusion: So the above is Initiation of lawsuits in commercial arbitration in Vietnam . Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
