Loss of right to object in dispute resolution by arbitration

Losing the right to object is a completely possible situation in dispute resolution by arbitration, but in reality, many subjects do not care about this. Therefore, in the article below, Viet An Law Firm will provide information about the loss of right to object in dispute resolution by arbitration.

Legal basis

• Vietnam Law on Commercial Arbitration 2010;
• Resolution No. 01/2014/NQ-HDTP of the Council of Judges of the Supreme People’s Court on Instructions for implementing a number of provisions of the Law on Commercial Arbitration.

Loss of right to object in dispute resolution by arbitration

The right to object is an extremely important right of the parties in the settlement of disputes by arbitration. The fact that one or the parties lose the right to object to a certain issue can completely affect the final outcome of the dispute.

Loss of the right to object to dispute settlement by arbitration is specified in Article 13 of the Law on Commercial Arbitration of Vietnam 2010 and in Article 6 of Resolution No. 01/2014/NQ-HDTP of the Council of Judges of the Court. Supreme People’s Court on Guidelines for the implementation of a number of provisions of the Law on Commercial Arbitration.

Accordingly, in the event that a disputing party discovers a violation of the provisions of the Law on Commercial Arbitration or of the arbitration agreement between the parties, however, it still continues to conduct arbitration activities. and does not object to any violation within the time limit specified in the law, it will be deemed to have lost the right to object at the arbitration.

From the above provisions, it can be seen that not every case where one of the parties loses the right to object, but there are certain conditions that have been set forth by law. This issue of losing the right to object to arbitration has just occurred. Specifically, those conditions include:

• One of the disputing parties finds a breach in the arbitration agreement between the parties.
• The disputing party shall continue to conduct arbitration proceedings.
• The party detecting the violation did not object to the violation or the objection to the violation occurred after the time limit prescribed by law. This means, the right to object of one or the parties is only exercised for a certain period of time, after this time limit, there will be no right to object.

In addition, based on Clause 2, Article 6 of Resolution No. 01/2014/NQ-HDTP of the Council of Judges of the Supreme People’s Court on guiding the implementation of a number of provisions of the Law on Commercial Arbitration, the subject has The right to consider the request of one of the disputing parties about the detection of a violation of the provisions of the Commercial Arbitration Law or a violation of the arbitration agreement is the Court.

That is, the Court will proceed to consider the request of one or more disputing parties for a finding of violation and to determine whether this request is accurate or inaccurate, the Court will have to examine documents, evidence, evidence, and the rules of arbitration.

At the same time, the Court is also the subject to consider whether one or more disputing parties have lost their right to object, or whether the disputing parties have not lost their right to object. Once one or more disputing parties are determined by the Court to have lost the right to object, that party will no longer have the right to complain or request cancellation of the arbitral award on the issues that have lost the right to object.

Some notes on the issue of loss of right to object in dispute resolution by arbitration

• The violated regulations may be specified in the Commercial Arbitration Law or in the arbitration agreement between the parties. Just detecting a violation of the provisions of these documents will be considered a discovery of a violation.
• The exercise of the right to object by one or more parties must take place against the Arbitration Council or Arbitration Center (in case the disputing parties choose to resolve the dispute at the Arbitration Center). That is, when a violation is detected, the party that discovered the violation needs to exercise its right to object to the Arbitral Tribunal and Arbitration Center.
• The parties’ right to object can only be exercised within a certain period of time from the date of discovery of the violation. This period is usually determined as follows:
• According to the time limit specified in the Commercial Arbitration Law;
• If in a situation where the Commercial Arbitration Law does not have regulations on an objection deadline, this deadline will be determined based on the agreement of the parties or according to the arbitration procedural rules.
• In cases where the Commercial Arbitration Law does not have any regulations, the parties do not have any agreement and the arbitration procedural rules do not have regulations on the issue of time limits for objections, the parties must comply. Your right to object before the Arbitral Tribunal issues its decision.
• Once the party has lost the right to protest, the losing party will not have the right to appeal against the decisions of the Arbitral Tribunal or request the Arbitral Tribunal to cancel the arbitration award for the violations that it has lost the right to object.
• The latest time for one or the disputing parties to exercise their right of objection is immediately before the arbitral tribunal issues its final award. That is, once an award has been rendered by the arbitral tribunal, one of the parties shall be deemed to have lost their right to object.

Some notes for businesses when participating in dispute resolution by arbitration

• Although there are conditions set and certain conditions must be met in accordance with the law to be considered a loss of the right to object, it is not impossible that one or Parties participating in arbitration may lose their right to object to a certain issue.
• Losing the right to object can have certain consequences, the most serious of which can affect the final outcome of the dispute. For example, the party that has lost the right to object will no longer be able to appeal against the decisions of the Arbitration Council on the issue that has lost the right to object even if the decision on this issue shows signs of violation.
• Therefore, in order not to lose their right to object, businesses participating in dispute resolution by arbitration must be extremely attentive to the circumstances in which they may lose their right to object.

However, to determine if your business is in a situation where it is possible to lose the right to object is a complicated job, requiring high expertise. Therefore, businesses should look to reputable and experienced experts in this matter such as a team of lawyers and consultants of Viet An Law to receive the best support.

If you need advice on resolving disputes by arbitration, please contact Viet An Law Firm for our best support!