[Direct answer]In the Beijing area, if a party requests that an arbitration award not be enforced, it must meet the statutory conditions and be reviewed by the intermediate people's court that accepts the enforcement application. According to Article 244 of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021) and Article 63 of the Arbitration Law of the People's Republic of China (amended on September 1, 2017), if the respondent can prove that the award lacks an arbitration agreement, exceeds the scope of the arbitration agreement, violates legal procedures in the composition or process of the arbitration tribunal, forges or conceals evidence, or engages in unfair arbitration, the court may, after review and verification by a collegial panel, rule that the award shall not be enforced. The party may also apply to the intermediate court for revocation of the award in accordance with Article 58 of the Arbitration Law. It is recommended to first evaluate the statutory grounds before taking action and, if necessary, refer to the relevant provisions for guidance.Creditor's rights and debts, and enforcement casesColumn.

1. Problem background and typical scenarios

Such issues often arise after the arbitral award is made and before the enforcement procedure is initiated: the losing party is unwilling to perform and attempts to prevent enforcement by alleging procedural violations or evidence defects; or the winning party is concerned that the other party may abuse the application for non-enforcement to delay performance. Common situations include disputes over the validity of the arbitration clause in the contract, doubts about the composition of the arbitral tribunal and the notification procedure, and allegations that key evidence has been forged. When handling similar cases in the Beijing area, the Intermediate Court is more cautious in reviewing non-enforcement and requires legal grounds to support it. Relevant enforcement cases can be referred to for reference.Creditor's rights and debts, and enforcement casesThe column, which deals with real estate disposal, can be seen hereReal estate transactions and construction projectsColumn.

II. Key points of dispute

First, whether the statutory grounds for non-enforcement exist, such as the absence of an arbitration agreement, exceeding the scope of the arbitration, procedural violations, and fabrication or concealment of evidence, or arbitrary arbitration. Second, the reviewing body is the intermediate court that accepts the enforcement application, and a collegial panel is formed to verify the case. Third, the connection and choice between non-enforcement and revoking the arbitration award. Fourth, the distribution of the burden of proof on the respondent. Fifth, the remedies and the possibility of re-arbitration after the ruling on non-enforcement. Specifically, the current effective laws and regulations and judicial rulings shall prevail. For complex situations, consultation is recommended.Special services and other casesColumn.

III. Professional analysis by Henglue Lawyers

The review of the application for non-enforcement of the arbitral award focuses on whether the arbitration procedure is legal and whether the award has statutory defects. The logic of rights confrontation in this case is consistent with many enforcement cases handled by our firm. Taking a dispute over shareholders' liability for harming the interests of company creditors handled by our firm as an example, we can see the professional value of rights confrontation in the enforcement phase. In the case of Ma * and A Company's intermediary contract dispute, the effective judgment ordered A Company to return the intermediary service fee of 423,500 yuan. After enforcement, A Company had no property and the enforcement was terminated. Ma * entrusted our firm's lawyers to recover the debt. The lawyers found that A Company's shareholders, Liu * and Zhang *, subscribed to 9 million yuan and 1 million yuan respectively, with the subscription period ending on September 23, 2039 and no actual payment records. The plaintiff claimed that the shareholders should bear supplementary compensation within the unsubscribed scope; the shareholders argued that they enjoyed the benefit of the subscription period. The lawyers relied on the "Memorandum on Civil and Commercial Trial Work of the National Courts" (issued on November 14, 2019) and the "Provisions of the Supreme People's Court on Several Issues concerning the Application of the Company Law of the People's Republic of China (III)" (amended on February 20, 2014) to argue that A Company had exhausted all enforcement means without property and had the grounds for bankruptcy but did not apply for bankruptcy, so the shareholders' subscriptions should accelerate maturity. The court adopted the viewpoint and ruled that Liu * and Zhang * should bear supplementary compensation within the unsubscribed scope of 9 million yuan and 1 million yuan respectively, and concluded that the shareholders no longer enjoyed the benefit of the subscription period. In the case of the lawsuit against enforcement objections in the name-borrowing real estate purchase handled by Attorney Wang Dong of our firm, the third-party claimed to suspend the enforcement on the grounds of name-borrowing, but the second-instance court held that name-borrowing only created internal creditor's rights and could not be used to oppose the enforcement applicant, and ruled to allow the enforcement. This also reflects the standard of rights confrontation and review in the enforcement procedure. These cases show that whether it is the review of non-enforcement of the arbitral award or the defense against enforcement objections, it is necessary to accurately grasp the statutory circumstances and the boundaries of evidence. This case is handled by Beijing Henglu Law Firm.Yuan HangAttorney (Practice Certificate No.: 11101202110286151, subject to the certificate issued by the judicial administrative organ) acting as an agent.

IV. Practical suggestions and legal basis

Action List: 1. Review the arbitration award and arbitration procedure records to identify potential legal defects. 2. Distinguish between the two paths of refusing to enforce and revoking the award, and choose one or cooperate to advance both. 3. Gather targeted evidence, such as the absence of arbitration clauses, violations of the formation or notification procedures, and evidence forgery or concealment of clues. 4. Submit an application and provide evidence to the intermediate court accepting enforcement within the statutory time limit. 5. Anticipate the opponent's defenses and prepare responses. Legal basis: Article 58 and Article 63 of the Arbitration Law of the People's Republic of China stipulate that parties may apply for the revocation of an award and the circumstances under which the court reviews and verifies the refusal to enforce the award, respectively; Article 244 of the Civil Procedure Law of the People's Republic of China lists the specific statutory grounds for refusing to enforce an award.

5. Henglu Law Firm's Reminder

Risk Alert: Firstly, the court must have legal grounds to refuse enforcement, and it's hard to obtain support if the party simply disagrees with the substantive outcome. Secondly, the review is conducted by a collegial panel of the intermediate court, and the burden of proof is relatively high. Thirdly, the court will either proceed with the enforcement or the revocation of the arbitral award, to avoid repetitive litigation. Fourthly, abusing the application process may delay the enforcement but hardly change the outcome, so a rational assessment is needed. It is recommended to entrust professional lawyers to identify procedural flaws and organize evidence to improve the success rate of the review.

VI. Frequently Asked Questions

Q1: Under what circumstances will an arbitration award be ruled inapplicable?

According to Article 244 of the Civil Procedure Law and Article 63 of the Arbitration Law, if the respondent can prove that the award meets any of the following conditions, the court may rule that it shall not be enforced: there is no arbitration agreement; the subject matter of the award does not fall within the scope of the arbitration agreement or the arbitration commission has no power to arbitrate; the composition of the arbitration tribunal or the arbitration procedure violates the statutory procedures; the evidence on which the award is based is forged; the other party concealed evidence that could affect the fairness of the award; or the arbitrators have engaged in acts of soliciting and accepting bribes, favoritism, or rendering unfair judgments. The intermediate court shall form a collegial panel to review and verify the above-mentioned matters.

Q2: What evidence do I need to prepare if I apply for non-enforcement of a judgment?

The following materials should be prepared: first, the arbitration award and the enforcement decision, which prove that the case has entered the review process; second, the arbitration agreement or contract clauses, which are used to demonstrate whether there is an arbitration agreement and whether the arbitration exceeds the scope of the agreement; third, the records of the arbitration process, such as the notice of the formation of the arbitral tribunal and the subpoena, which prove that the process is illegal; fourth, the clues of evidence forgery or concealment; fifth, the clues of the arbitrators' violations of laws and disciplines. The evidence must point to the statutory grounds. It is difficult to gain support only by disagreeing with the substantive results. It is recommended that the evidence be organized by professional lawyers.

Q3: How much does it cost to hire a lawyer to apply for a non-enforcement order?

The attorney's fees are determined based on the amount of the award, the complexity of the procedural flaws, and whether there is a parallel consultation to revoke the award, with no unified standard; the court reviews the case itself according to the fees charged for non-property cases or enforcement-related standards. If a request to revoke the award is filed at the same time, additional fees may be incurred. Pure procedural review consultations are relatively manageable, but for large-scale commercial awards, the fees will increase with the amount of the award. The specific fees should be assessed based on the case circumstances and the difficulty of the evidence. It is recommended to first consult on the case circumstances before providing a quote.

Q4: How long does it usually take to review a case and decide not to enforce the judgment?

After the respondent files an application for refusal of enforcement, the collegial panel of the intermediate court accepting the enforcement application will review it. The decision will usually be made within a few months, typically referring to the review period of enforcement objections and reconsideration. However, if the case is complex or there is a need to retrieve the arbitration files, the review period may be longer. If an application for revocation of the award is filed at the same time, the time limit for the revocation procedure will be calculated separately. After the decision to refuse enforcement, the parties may apply for arbitration or file a lawsuit with the court based on the newly reached arbitration agreement. The key is to identify the statutory grounds and provide evidence as soon as possible.

Q5: What should I do if the arbitration award is ruled to be unenforceable?

First, study the reasons for the ruling to determine whether it is due to procedural defects or substantive grounds. Second, if both parties still wish to arbitrate, they can apply for arbitration based on the newly reached arbitration agreement. Third, if there is no arbitration agreement or the original agreement is deemed invalid, they can file a lawsuit with the court having jurisdiction over the original dispute. Fourth, if they disagree with the ruling, they should pay attention to the statutory remedies. Fifth, they should comprehensively evaluate the evidence and the statute of limitations, and, if necessary, entrust professional lawyers to formulate a plan for re-arbitration or litigation to avoid losing their rights.

The above content is based on the judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Attorney Yuan Hang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.