Evidentiary Standards and Service Formalities in PRC Set Aside Proceedings
PRC arbitral set aside actions require proving strict procedural notice defects or outcome-determinative evidence fabrication under rigid statutory standards.
Article 70
Meaning
A specific statutory provision in the PRC Arbitration Law governs the court-ordered setting aside of arbitration awards involving foreign elements. Under Article 70, the intermediate people’s court of the place where the arbitration commission is located has the power to annul an award if certain procedural defects are proven. The provision applies specifically to foreign-related disputes, which are subject to different judicial oversight than purely domestic cases.
It creates a formal legal bridge between institutional arbitration rules and state judicial power. Foreign investors rely on this section to challenge awards that suffered from serious procedural unfairness.
Judicial Authority
Intermediate people’s courts hold the exclusive jurisdiction to hear applications under this provision. A party seeking to annul an award must apply to the court where the arbitration institution is based. If the court finds that Article 70 is applicable, it will conduct a formal hearing to evaluate the claims.
The judicial authority is strictly limited to procedural reviews and does not extend to the substantive merits of the dispute. This prevents courts from re-trying the commercial case.
Legal Ground
The grounds for setting aside an award under this article are aligned with the PRC Civil Procedure Law. They include the absence of a valid arbitration agreement, the lack of proper notice of the arbitration proceedings, and the inability of a party to present its case. Additionally, if the formation of the tribunal or the arbitral procedure did not comply with the rules, the award can be annulled.
These grounds are procedural rather than substantive. They ensure that basic standards of fairness are maintained during the dispute resolution process.
Evidentiary Proof
The applicant must provide strong evidence to support the challenge. Simple allegations of bias or unfairness are insufficient. The applicant must submit transcripts, notices, and procedural correspondence from the arbitration to prove that a specific rule was violated.
This evidence must demonstrate a clear deviation from the agreed procedure or the statutory requirements.