What Is the Legal Effect of the Arbitration Award

The Article 57 of the Arbitration Law states that the award shall take effect upon the date it is made, and the Article 62 also says that the parties shall perform the award. If one party fails to do so, the other party may apply for enforcement to the people’s court based on relevant provisions of the Civil Procedure Law and the court shall perform.

Article 63  If the respondent provides evidences for the fact that the award is in any of the situations under Paragraph 2 of Article 217 of the Civil Procedure Law (Article 237 of the new Civil Procedure Law), which is reviewed and verified by the collegiate bench of the people’s court, the award shall not be executed.

Situations specified under Paragraph 2, Article 237 of the new Civil Procedure Law where the award shall not be executed:

If the respondent provides evidences for the fact that the award is in any of the following situations, which is reviewed and verified by the collegiate bench of the people’s court, the award shall not be executed:

(I) The parties didn’t provide arbitration clauses in the contract or didn’t conclude any written arbitration agreement;

(II) The matter subject to arbitration is beyond the scope of the arbitration agreement or the arbitration institution has no right for arbitration;

(III)  The constitution of the arbitral tribunal or the arbitration procedure is against the legal procedures;

(IV) The evidence on which the award is based is false;

(V) The other party concealed evidences that may impact the just verdict of the arbitration institution;

(VI) The arbitrators conducted corruption and accepting bribes, played favoritism and committed irregularities, or perverted the law during arbitration.

If the people’s court deems that it is harmful to the public interest to execute the award, the award shall not be executed.

The order shall be delivered to both parties and the arbitration institution.

If the execution of the arbitration award is disallowed by the people’s court, the relevant party may reapply for arbitration based on the written arbitration agreement reached by the two parties or file a lawsuit to the people’s court.