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What are the requirements for the cancellation and enforcement of the arbitration verdict?
(03/24/2008)

Either dispute party may, upon presenting evidence to prove one of the following circumstances, apply to the intermediate people¡¯s court which governs the region where the arbitration committee is located for canceling the given verdict:

(1) There exists no arbitration agreement by and between both parties for the actual dispute;

(2) the matter for arbitration does not fall into the range of the said arbitration agreement or the arbitration committee has no power to arbitrate it;

(3) the composition of the arbitration tribunal or the arbitration proceedings is against the legal requirements;

(4) any evidence upon which the verdict is made is false;

(5) the other party to the actual dispute has concealed evidence that may sufficiently affect the impartiality of verdict, or

(6) the arbitrator for the actual dispute seeks bribes, accepts bribes, commits wrongdoings to serve his/her friends or relatives, and/or perverts the law to deliver the verdict in arbitration.

Any application for canceling the verdict by either party of the actual dispute shall be made within 6 months upon the receipt of the actual verdict, to the competent people¡¯s court that shall, within 2 months upon the acceptance of such an application, rule for or overrule such an application.

The verdict of arbitration is, once made, legally binding and shall be enforced by both parties of the actual dispute unless it is cancelled upon a ruling by the competent people¡¯s court through legal proceedings. In case either party does not enforce it, the other party may, subject to the applied requirements of the Civil Procedure Law of the People¡¯s Republic of China, apply for enforcement to the competent people¡¯s court that shall accept the application to enforce it.

If either party involved in the actual dispute applies for enforcing the verdict and the other party of the actual dispute applies for canceling the verdict, the competent people¡¯s court shall rule to suspend the enforcement, or to terminate the enforcement in case it rules to cancel the verdict, or to resume the enforcement in case it overrules the application for canceling the verdict.