Filing Judicial Reviews for Domestic PRC Arbitral Awards
Setting aside domestic PRC arbitral awards requires filing an Article 58 petition at the seat Intermediate Court within six months of receipt.
Set-Aside Procedure
Meaning
Legal remedy allows a party to apply to a court to annul an arbitral award. In Chinese civil procedure, the set-aside procedure is the primary mechanism to challenge the legal validity of a domestic or foreign-related award within the territory. This action must be initiated at the intermediate people court of the place where the arbitral award was made.
Statutory Foundation
Grounds for annulment are strictly limited by law to protect the finality of arbitration. Under Article fifty-eight of the PRC Arbitration Law, the set-aside procedure can only succeed if the applicant proves that there was no arbitration agreement, the tribunal exceeded its authority, or the procedural rules were violated. In addition, the court can annul an award if it discovers that the evidence was falsified or that the arbitrators accepted bribes.
This narrow scope prevents losing parties from using the courts to re-litigate the entire substance of their commercial dispute.
Procedural Execution
Strict time constraints govern the filing of the application. The party seeking to set aside the award must submit the petition within six months from the date they received the written award. This deadline is non-extendable, and failure to submit the petition within this window bars the party from ever challenging the award through this specific judicial pathway.
Judicial Outcome
A successful application completely invalidates the award. If the court rules in favor of the applicant, the original decision ceases to have legal effect, allowing the parties to either agree on a new arbitration or submit their dispute to the courts.