JURISDICTION OF COMMERCIAL ARBITRATION

In the course of business operations, conflicts and disputes among parties involved are inevitable. To resolve these disputes fairly and effectively, commercial arbitration is a commonly chosen option. So, what is the jurisdiction of commercial arbitration defined as?

Commercial arbitration only has authority to resolve disputes when there is an arbitration agreement between the parties

This is one of the fundamental principles when resolving disputes through commercial arbitration. When parties intend to bring a dispute to arbitration, they must have an arbitration agreement.

This agreement can be established either through an arbitration clause in the contract or in a separate agreement. The arbitration agreement can be made before or after the dispute arises.

Additionally, the arbitrator will only resolve the entire or partial dispute as agreed upon by the parties. Furthermore, the arbitration agreement must not fall under circumstances where it is void or incapable of being performed.

Disputes fall under the jurisdiction of commercial arbitration

Not all types of disputes can be brought for resolution to commercial arbitration. Based on current legal provisions, disputes falling within the jurisdiction of commercial arbitration include:

Disputes fall under the jurisdiction of commercial arbitration if they occur between the parties arising from commercial activities:

Commercial activities encompass profit-oriented endeavors, including the buying and selling of goods, provision of services, investments, trade promotion, and other profit-driven activities. When parties engage in such activities and disputes arise between them, these disputes can be resolved through arbitration.

A dispute falls under the jurisdiction of commercial arbitration if at least one party in the disputed relationship engages in commercial activities:

When one party engages in the aforementioned commercial activities and provides those services to the other party, and disputes arise between them, these disputes can be resolved through arbitration.

Other disputes will fall under the jurisdiction of arbitration if permitted to be resolved by arbitration.

Determination on the jurisdiction of the Arbitrator and the Court in resolving disputes

Generally, arbitration will have jurisdiction to resolve disputes if there is an arbitration agreement and the dispute falls within the scope of the jurisdiction of arbitration. However, in some cases, even though there is an arbitration agreement, the dispute may still fall under the jurisdiction of the court:

– If there is a court decision to annul the Arbitration award, invalidate the decision of the Arbitration Council regarding the recognition of the parties’ agreement;

– If there is a court decision to suspend the dispute resolution of the Arbitration Council, Arbitration Center;

– If the dispute falls under other cases as stipulated by law.

If one party to the dispute requests the court to resolve the dispute within the jurisdiction of the Arbitration, the Court will examine and determine whether the dispute falls within the above-mentioned cases. If there is no agreement or the agreement does not specify commercial Arbitration, the Court will consider jurisdiction and resolve the dispute. If there is an agreement and the agreement does not fall within the mentioned cases, the Court will return the complaint and accompanying documents and evidence.

If the parties have both agreed to resolve disputes through arbitration and through court proceedings:

– If the plaintiff requests arbitration to resolve the dispute before requesting court proceedings or requests Arbitration while the Court has not yet taken jurisdiction over the case: upon receiving the Court complaint, the Court must return the complaint. If the Court has already taken jurisdiction over the case, it will issue a decision to suspend the proceedings, return the complaint, and accompanying documents.

– If the plaintiff requests Court proceedings to resolve the dispute: Upon receiving the Court complaint, the Court must determine whether either party has requested Arbitration. If the court determines that Arbitration has been requested, it will return the complaint to the plaintiff. If the defendant or plaintiff has not requested arbitration, the Court will proceed with the general procedure. If the Court has already taken jurisdiction over the case and discovers that Arbitration was requested before the court took jurisdiction, the Court will issue a decision to suspend the proceedings, return the complaint, and accompanying documents.

>> FORM OF COMMERCIAL ARBITRATION PETITION https://linconlaw.vn/form-of-commercial-arbitration-petition/

>> NOTES IN SALE AND PURCHASE APARTMENT UNDER CONSTRUCTION https://linconlaw.vn/notes-in-sale-and-purchase-apartment-under-construction/