On the morning of March 26th, the First International Commercial Court of the Supreme People's Court conducted inquiry into three cases [case numbers are (2019) ZuiGaoFaMinTe No.1, 2 and 3, respectively] of applications for the confirmation of the validity of an arbitration agreement between the applicants Luck Treat Limited (domiciled in the British Virgin Islands), BEIJING HK CTS GRAND METROPARK HOTELS MANAGEMENT CO LTD, SHENZHEN METROPARK HOTEL CO LTD  and Newpower Enterprises Inc. (domiciled in the British Virgin Islands) and the respondent Zhong Yuan Cheng Commercial Investment Holdings Co., Ltd. This is the first time that the China International Commercial Court has formally inquired of the parties. It is also the first time that the China International Commercial Court has conducted inquiries into cases of arbitration-related judicial review in accordance with Article 11 of the Provisions of the Supreme People's Court on Several Issues concerning Deciding Cases of Arbitration-Related Judicial Review. After Zhong Yuan Cheng Commercial Investment Holdings Co., Ltd. applied for arbitration at Shenzhen Court of International Arbitration, and prior to the first hearing before the Tribunal, the other parties applied to the people's courts to confirm that there was no arbitration clause between the parties. Since the above three cases were related cases, the collegial panel, after seeking opinions from the parties, decided to inquire into them at the same time.

The collegial panel of the abovementioned cases consisted of five judges of the China International Commercial Court, namely Judge Zhang Yongjian, Judge Gao Xiaoli, Judge Xi Xiangyang, Judge Ding Guangyu and Judge Shen Hongyu. Judge Zhang Yongjian, the Person in Charge of the First International Commercial Court, acted as the presiding judge, and together with his colleague on the collegiate panel Judge Xi Xiangyang, inquired of the lawyers of the parties. Tiantong Law Firm acting for the applicant and Beijing Horizon Law Firm (Shenzhen) acting for the respondent expressed their opinions on the formation of the main contract, the separability of the arbitration clause, the formation of arbitration clause and other issues, with a focus on the contention over whether there was an arbitration agreement between the parties. At the beginning of the inquiry, all parties expressly agreed to choose the law of the People's Republic of China to be the applicable law governing the validity of the arbitration clause in the contracts. The two judges on the collegial panel also listened carefully and paid close attention to the lawyers’ arguments citing international law, foreign laws and case precedents as well as the reference materials in English that they submitted. At the end of the inquiry, all parties expressed their willingness to negotiate on the dispute resolution mechanism.

It is an innovative measure for the China International Commercial Court of the Supreme People’s Court to directly review significant international commercial cases regarding the validity of an arbitration agreement, which reduces any possible delay due to the tiered reporting mechanism, greatly improves the efficiency to resolve international commercial disputes, enhances the transparency of judicial review and is well-positioned to respond to the needs of business and arbitration communities. 

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最高人民法院第一国际商事法庭就三起申请确认仲裁协议效力案件进行正式询问

*The original text is Chinese and has been translated into English for reference only. If there is any inconsistency or ambiguity between the Chinese version and the English version, the Chinese version shall prevail.