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[Gusu Evening News] Foreign Applicant Praises SICT on Live Video
Date of issue: 2021-02-07 Number of views:5853

"Thank you very much! The trial of SICT is fair and efficient!" That was the reaction of an Ukrainian business applicant who gave the thumbs up to Suzhou Judge Yang En’qian on live video. On the same day, the Suzhou International Commercial Tribunal (SICT) opened a public hearing to review two disputes over applications for the recognition and enforcement of foreign arbitral awards filed by Ukrainian companies. The tribunal ruled to recognize and enforce the foreign arbitral awards in accordance with the provisions of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Done at New York (New York Convention). This is the first ruling made by the SICT to recognize and enforce foreign arbitral awards since its establishment.

The applicants in the two cases are Sfera Met Co.,Ltd and Ad-Mar Co.,Ltd, both Ukrainian companies. The respondent was a materials company in Suzhou. In March 2017, the two applicants signed contracts with the respondent to purchase steel rolls and paid US$79,235 and US$171,250 respectively in advance, but the respondent did not deliver the goods.

Therefore, the two applicants filed arbitration applications with the International Commercial Arbitration Court of the Ukrainian Chamber of Commerce and Industry in accordance with the arbitration clauses agreed in the contracts between the two parties and the respondent, and the arbitration court made the rulings: the material company in Suzhou should refund US$79,235 and US$171,250 to the two applicants, respectively, and pay the arbitration fee. Subsequently, the two applicants applied to the Suzhou Intermediate People's Court for recognition and enforcement of the two arbitral awards made by the International Commercial Arbitration Court of the Ukrainian Chamber of Commerce and Industry in accordance with the provisions of the New York Convention.

"During the review of this case, whether the notice of the arbitration tribunal on the arbitration procedure was effectively served has become the issue of the dispute." Yang Engan, the judge in the case, told reporters, "The defense put forward by the respondent was that the serving process of applicants’ materials had certain defects. The collegial panel, after deliberation, believed that the service information was directly corresponded to the address of the respondent, and all the arbitration materials had been received with signature confirmations, so the serving is effective."

According to reports, both China and Ukraine are signatories to the New York Convention, and the case needed to be reviewed in accordance with the provisions of the Convention. Both parties agreed in the contract that Ukrainian law should apply to disputes arising from contract fulfillment. Therefore, in this case, the collegial panel reviewed the Ukrainian International Commercial Arbitration Law and the International Commercial Arbitration Rules of the Ukrainian Chamber of Commerce and Industry. Within one week of receiving the relevant Ukrainian laws and regulations submitted by the applicants, the tribunal quickly organized a hearing and made a ruling which was served to the parties in the tribunal. The applicants' attorney connected the applicants via live video on the spot and informed them of the ruling.

Arbitration is an internationally accepted method for autonomous dispute resolution. It is an important part of China's diversified dispute resolution mechanism and social governance system. It is also one of the elements of China's legalization, internationalization and facilitation of its business environment. In recent years, Suzhou has ushered in opportunities for the implementation of multiple national strategies such as the Belt and Road Initiative, the Yangtze River Economic Belt and the Regional Integration of the Yangtze River Delta. This provides a broader stage for the SICT to demonstrate its role.

Yu Shuijuan, Chief Judge of the SICT said: “One side in the above two cases are enterprises from Ukraine, a country along the Belt and Road. The handling of the cases fully reflects equal protection of the legal rights of Chinese and foreign parties, and also demonstrates our judicial attitude of adhering to the obligations of the Convention, and optimizing a marketized, legalized and internationalized business environment."

As China's first international commercial tribunal approved to be established in a local court by the Supreme People's Court, the SICT has accepted more than 200 cases and concluded nearly 60 since its establishment. The tribunal will take in the requirements of the Belt and Road construction, higher-level opening up and the development of the Suzhou Area of China (Jiangsu) Pilot Free Trade Zone into consideration, implement a boutique strategy for foreign-related commercial trials, and strive to provide inclusive, equal, convenient, efficient, intelligent and accurate judicial services for Chinese and foreign parties, timely and effective judicial relief for Chinese and foreign market players, and stronger judicial guarantees for the implementation of major national strategies and Suzhou's high-quality development as a pace setter.