A light at the end of the tunnel when arbitral award enforcement is denied

By Chloe Lin, Martin Hu & Partners
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An arbitral award is but a worthless scrap of paper if a party cannot realize their rights and interests and demand performance on the strength of the award. To ensure judicial impartiality and avoid harm to the rights and interests of parties, a party may apply to the competent court for enforcement when the other party refuses to do so. The people’s court is required to enforce the award and initiate the enforcement process.

林陈瑶 Chloe Lin 胡光律师事务所 律师 Attorney Martin Hu & Partners
林陈瑶
Chloe Lin
胡光律师事务所
律师
Attorney
Martin Hu & Partners

Dire straits

When a court denies the enforcement of an arbitral award, it rules to halt the enforcement of an arbitral award upon application by a party or ex officio, provided that it satisfies the statutory requirements. This is essentially a form of judicial supervision of arbitration to ensure impartiality.

However, this supervision is unidirectional. The courts supervise arbitration, but the parties cannot supervise the court’s ruling on enforcement. As such, how can the party to arbitration seek a remedy when enforcement is denied due to a court exhibiting such behaviour as practicing favouritism, committing irregularities or perverting the law in rendering its judgment or ruling?

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林陈瑶 Chloe Lin

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