This Provisions established the system of applications for verification of arbitration cases under judicial review.
The system innovatively transforms the original reporting system applied in arbitration involving foreign elements into a more standardized judicial review system with Chinese characteristics that covers domestic arbitration. The main contents are as follows:
First, specifying the scope of arbitration cases under judicial review, which includes the following cases: cases in which an application is filed for confirming the validity of an arbitration agreement; cases in which an application is filed for revoking an arbitral award rendered by an arbitration institution in the Mainland China; cases in which an application is filed for enforcing an arbitral award rendered by an arbitration institution in the Mainland China; cases in which an application is filed for recognizing and enforcing an arbitral award rendered in the Hong Kong SAR, the Macao SAR, and the Taiwan Region; cases in which an application is filed for recognizing and enforcing a foreign arbitral award; and other arbitration cases under judicial review (Article 1).
Second, narrowing the differences between “domestic cases” and “cases involving foreign elements” under judicial review and balancing the level of applications for verification of “domestic cases” and “cases involving foreign elements”. The inclusion of the review of domestic arbitration cases into the scope of application for verification has narrowed the differences between “domestic cases” and “cases involving foreign elements” under judicial review and is conducive to unifying the adjudicating standard of judicial review of domestic cases. However, the number of domestic cases is dozens of times than that of cases involving foreign elements. For the purpose of balancing the normative goal of judicial review and practical affordability, it is stipulated that cases involving foreign elements shall continue to be reported at the original reporting level, and negative decisions shall be reported to the SPC for review. Domestic cases, in principle, shall be reported to the higher people’s courts for approval; however, cases where the parties’ domiciles are across provincial administrative regions, or where domestic arbitral awards are sought not to be enforced or sought to be revoked on grounds of violating public interests, are required to be reported to the SPC for approval (Article 2, 3).
Third, further standardizing the procedure of applications for verification. For example, for a case where a lower level people’s court files an application with the higher-level people’s court for verification, the lower level people’s court at the lower level shall concurrently submit a written report and case docket files. Where, upon receipt of an application for verification from the lower level people’s court , the higher level people’s court finds that the relevant case facts are unclear, the higher level people’s court may inquire the parties or send the application back to the lower level people’s court for supplementary finding of facts and then the lower level people’s court may submit an application again. (Article 4 and Article 5).
The Relevant Provisions on Applications for Verification of Arbitration Cases unifies judicial review qualities, standards and practices for domestic arbitration and arbitration involving foreign elements, effectively bridging existing differences. It is of great significance in preventing the undue interference in domestic arbitration by local courts, improving the environment for judicial review of domestic arbitration and enhancing the transparency, uniformity and standardization of judicial review.