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Supersonic Imagine SA (France) v. Beijing Huaxing Yuanda Technic Corporation Ltd. (2015)

From: 清华大学法学院《中国商事仲裁法律汇编》         Updated: 2015-10-23   

Civil Ruling of Beijing Fourth Intermediate People’s Court

(2015)Sizhongmin(shang)tezi No.00195, 23 October 2015


Petitioner: Supersonic Imagine SA (“Supersonic”)

Represented by Tom Egelund, Chief Executive Officer 

Counsel: Shan Meng, Qin Wen from Beijing RUNMING Law Firm


Respondent: Beijing Huaxing Yuanda Technic Corporation Ltd (“Huaxing”) Represented by Xiong Wenjie


This case was filed on Jun 8th 2015 by the Petitioner against the Respondent for recognition and enforcement of an arbitral award rendered by the International Chamber of Commerce (“ICC”). The tribunal was constituted by three judges. Upon service by publication, the Respondent did not attend the hearing without reasonable grounds.


According to Supersonic, it filed a request for arbitration in ICC on Sept 3rd 2013, with case No. 19694/EMT. The arbitral tribunal rendered the final award on Oct 30th 2014, according to which Huaxing shall pay the following items to Supersonic: a) the outstanding invoice amount, €474,228, with legal interests dating from Apr 8th 2013, compound interests dating from Apr 21st 2014, and interest rate increasing 5% per two months since the making of the award; b) loss of profits, €666,400, with legal interests dating from Sept  3rd 2013, and interest rate increasing 5% per two months since the making of the award; c) $150,000 as compensation for reasonable expenses resulting from the arbitration proceeding; d) all the arbitration fees, $270,000. Due to the failure of Huaxing to comply with the award, Supersonic now applies to recognize and enforce the 19694/EMT award in this court, pursuant to Article 283 of the Civil Procedure Law of the PRC. 


Huaxing does not attend the hearing,nor does it make any written submissions to the court.


The court confirms the following findings. The 19694/EMT award was rendered by ICC on Oct 30th 2014, and it has become binding as well as been legally served on both parties. The award includes the following decisions of the tribunal. A. The tribunal had jurisdiction over the claim filed by Supersonic. B. The underlying contract was effectively terminated by Supersonic on Apr 8th 2013. C. Huaxing should pay Supersonic the outstanding invoice amount, €474,228, with legal interests dating from Apr 8th 2013, compound interests dating from Apr 21st 2014, and interest rate increasing 5% per two months since the making of the award. D. Huaxing should compensate Supersonic the loss of profits €666,400, with legal interests dating from Sept  3rd 2013, and interest rate increasing 5% per two months since the making of the award. E. Huaxing should pay Supersonic $150,000 as compensation for reasonable

expenses resulting from the arbitration proceeding. F. Huaxing should bear all the arbitration fees, namely $270,000. G. The award could be provisionally enforced. H. The tribunal rejected all other claims and reliefs submitted by Supersonic.


The court also confirms that, since China and France are both contracting states of the New York Convection, and what the award deals with is a commercial contractual dispute under the PRC law, therefore the New York Convention should govern the recognition and enforcement of the award. After applying Article V. 1 of the convention to the present case, the court finds that there is no ground set forth in Article V.1 existing that would hinder the recognition and enforcement of the award, nor does the award violate the legal order or public policy of China. Consequently, the award meets the conditions of being recognized and enforced in China.


Based on the above findings and reasoning, and pursuant to Article V of the New York Convention, Article 283 of the Civil Procedure Law of the PRC, and Articles 547, para 1 and 548 of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the PRC , the court rules that the recognition should be granted. Huaxing shall perform the payment obligations in accordance with the 19694/EMT in 30 days since this ruling has been served. If Huaxing fails to fulfill its liability, Supersonic could apply for compulsory execution of Huaxing’s assets.


The litigation fee ¥500, shall be borne by Huaxing, and should be paid to the court in 7 days.


This ruling is final.



Presiding Judge: Wang Xiang

Judge: Wang Xiaohu

Judge: Ma Zhihui

October 23rd 2015

Judge Assistant: Cui Xibin

Court Clerk: Li Jiaxin


Related Links:
超音速影像有限公司(法国)(Super Sonic Imagine SA)与北京华星远大国际技术有限公司申请承认和执行外国仲裁裁决民事裁定书



 

*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.