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Identify Russian laws and relevant arbitration rules recognizing Russian arbitration awards

The applicant, a company in Russia, and the respondent, a company in Qingdao, apply for recognition and enforcement of foreign arbitration awards

1.Basic case

The arbitration clause in Article 8 of the contract signed between the applicant’s company in Russia and the respondent’s company in Qingdao in 2015 stipulates that disputes arising from this contract shall be heard by the International Commercial Arbitration Court of the Russian Federation Chamber of Commerce. On February 1, 2018, the sole arbitrator of the International Commercial Arbitration Court of the Russian Federation Chamber of Commerce and Industry made an award based on the applicant’s application and hearing, awarding a company in Qingdao to pay a payment to a company in Russia. The applicant, a Russian company, has submitted a request to the Qingdao Intermediate People’s Court for recognition and enforcement of the arbitration award made by the International Commercial Arbitration Court of the Russian Federation Chamber of Commerce in the case of an international goods sales contract dispute between the applicant and the respondent. The respondent argues that they have not received appropriate notice regarding the appointment of arbitrators and arbitration procedures, and according to Article 5B of the New York Convention, the arbitration award should not be recognized and enforced.

After examination, the arbitral tribunal has sent notices to the respondent three times, with the address being the registered address of the respondent, but without specifying the specific floor and room number. The phone number provided by the courier does not match the phone number provided in the contract. Regarding the phone number, the applicant’s Russian company claims that the phone number left by the courier is a phone number commonly used by both parties in the early stage of business cooperation, and the phone number left in the contract is the switchboard number of the respondent’s Qingdao company, which cannot be connected.

2. Laws to be investigated

The relevant provisions on extraterritorial service in the Arbitration Law of the Russian Federation.

3.Identified content

According to Article 3 of the International Commercial Arbitration Law of the Russian Federation, the receipt of written communication: (1) Unless otherwise agreed by the parties: A. Any written communication shall be deemed to have been received if it is delivered in person to the recipient or delivered to the recipient’s place of business, habitual residence, or mailing address, or if it is delivered to the recipient’s last known place of business, habitual residence, or mailing address by registered mail or any other means that can provide a record of attempted delivery but cannot be found after reasonable inquiry; B. The date of delivery of written communication in the above-mentioned manner shall be deemed as the date of receipt. (2) This provision does not apply to communication service in court proceedings.

4.Judgment result

According to the confirmed facts, the delivery address of the arbitral tribunal is consistent with the address agreed upon in the contract in question, which does not violate Article 10 (1) of the Arbitration Rules of the International Commercial Arbitration Court of the Russian Federation Chamber of Commerce. Regarding the inconsistency between the telephone number on the express delivery note and the telephone number agreed upon in the contract in question, firstly, Article 10 of the Arbitration Rules does not require telephone numbers, and secondly, the applicant’s Russian company has provided a reasonable explanation for the inconsistency between the telephone number on the express delivery note and the telephone number agreed upon in the contract in question. In summary, in the arbitration proceedings involved in this case, the arbitral tribunal has fulfilled appropriate notification obligations to a company in Qingdao regarding the appointment of arbitrators and the conduct of arbitration proceedings. The delivery of the arbitration award complies with the relevant provisions of the Arbitration Rules, and there is no situation under Article 5, Paragraph 1 (b) of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards in this case. According to Article 5, Paragraph 1 of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, Article 10 of the Arbitration Rules of the International Commercial Arbitration Court of the Russian Federation Chamber of Commerce (2017 Edition), and Article 290 of the former Civil Procedure Law of the People’s Republic of China, the Qingdao Intermediate People’s Court has decided to recognize the arbitration award in question.

5.Typical significance

In foreign trade, it is increasingly common to agree on arbitration as a dispute resolution method. For the recognition and enforcement of foreign arbitration awards, it is usually necessary to apply the relevant provisions of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (referred to as the New York Convention) for review. According to the requirements of the convention, receiving appropriate notice regarding the appointment of arbitrators and arbitration procedures is an important aspect of reviewing whether an arbitration award can be recognized and enforced. Regarding whether the delivery in arbitration meets the requirements, it is necessary to review the relevant provisions of the law and arbitration rules of the place of arbitration. Therefore, when handling such cases, it is usually necessary to investigate foreign laws and arbitration rules. Based on the investigation of Russian arbitration law and relevant arbitration rules, this case accurately applies relevant laws and rules, confirms the legality of the arbitration tribunal’s service procedure, and recognizes and enforces the Russian arbitration award. The trial of this case fully demonstrates the rule of law concept of Chinese courts respecting international conventions and equally protecting the legitimate rights and interests of both domestic and foreign parties.

 

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