Russian court refused recognition of CIETAC Awards

Jul 25, 2019

Russian court has refused recognition of arbitral awards issued under the arbitration rules of the China International Economic and Trade Arbitration Commission (the “CIETAC Awards”) after finding that the party against whom the CIETAC Awards were invoked was not given proper notice of the arbitration proceedings.

Zoomlion Heavy Industry Science& Technology and Hunan Zoomlion International Trade Co., Chinese companies, brought actions before the Arbitrazh Court of the City of Moscow (the “Court”) seeking recognition and enforcement of CIETAC awards issued against CJSC ARM-AVTO, a Russian entity (hereinafter referred to as the "Respondent") (cases А40-217053/2018 and А40-217058/2018).

The Respondent, in both cases, contended that it had not been notified of the arbitration proceedings. The Court examined the Respondent's argument, and found that the notices were made by means of a courier service. However, these notices were sent to a bad address, i.e. the address met neither the address specified by a contract nor the address stated on the Unified Register of Legal Entities and the Unified Register of Individual Entrepreneurs. Moreover, there were no signatures of the receiver on waybills.

Having established that fact, and recalling Art. V (1)(b) of the New York Convention, the Court has refused recognition of the CIETAC Awards in Russia (see: Ruling dated of 15 March 2019 in case А40-217053/2018; Ruling dated of 15 March 2019 in case А40-217058/2018). The rulings were appealed, but the appeals were denied.

All court decisions are available at kad.arbitr.ru — the official web site of the Russian Arbitrazh courts. (1). Case No А40-217053/2018. Zoomlion Heavy Industry Science& Technology v. CJSC ARM-AVTO; (2) case No А40-217058/2018. Hunan Zoomlion International Trade Co. v. CJSC ARM-AVTO.

(1).          Zoomlion Heavy Industry Science& Technology - http://kad.arbitr.ru/Card/a827a856-8bbf-4ad5-a664-6034b22790ed

(2).          Hunan Zoomlion International Trade Co. - http://kad.arbitr.ru/Card/2c63bd10-fca1-4033-a1fb-5ec08c9b8835

Mikhail Samoylov