When entering into a contract with an arbitration agreement, the parties usually do not pay attention to the selection of the Court with jurisdiction over arbitral proceedings. While the parties are still able to agree on an additional agreement when the dispute occurs, reaching such mutual agreement at this point may become more difficult. Nonetheless, the selection of a Court with jurisdiction over arbitral proceedings can help the parties better control the dispute solution by arbitration. Same as placing confidence in an appointed Arbitration Center, the parties may place their trust in a designated Court by pre-selecting that Court.

This short article informs businesses about the legal provisions on the Court’s jurisdiction with respect to the arbitral proceedings at an Arbitration Center and gives some useful instructions for contracting parties on the agreement of selecting a Court with jurisdiction over arbitral proceedings.

Jurisdiction of the Court with respect to the arbitral proceedings

In general, the Court has a certain role in arbitral proceedings. Particularly for resolving disputes by institutional arbitration, the Court has the authority to:

1. 1. Settle a complaint about the arbitral tribunal’s decision regarding the validity or the feasibility of the arbitration agreement or regarding the arbitral tribunal’s jurisdiction;
   2. Resolve a request to the Court for evidence collecting;
   3. Resolve a request to the Court for urgent interim measures application;
   4. Resolve a request to the Court for witness summon;
   5. Resolve a request to the Court for an arbitral award cancellation.

Right to select a competent Court

For all of the foregoing, the law on commercial arbitration allows the parties to agree on the selection of a competent Court. The parties may agree to select a competent Court before or after the dispute occurs. The agreement to select a Court with respect to arbitral proceedings shall abide by the principle that only one Court has jurisdiction over one arbitral issue or all arbitral issues.

In the case that the parties do not select the competent Court

If the parties do not exercise the option mentioned above, under the provisions of the law on commercial arbitration, different provincial Courts will have jurisdiction to handle different matters related to the arbitral proceedings. The regulation states as follows:

1. 1. For the settlement of a complaint about the arbitral tribunal’s decision on the validity or the feasibility of the arbitration agreement or about the arbitral tribunal’s jurisdiction; the competent Court shall be the Court where the arbitral tribunal issues the decision. The place where the arbitral tribunal issues the decision is the place stated in the arbitral tribunal’s decision.
   2. For the settlement of an evidence collecting request to the Court, the competent Court is the Court where the evidence is going to be collected.
   3. For the settlement of a request to the Court to apply urgent interim measures, the competent Court is the Court where the urgent interim measures are going to be applied;
   4. With respect to a request to the Court to summon witnesses, the competent Court is the Court located in the witness’s residence.
   5. For the resolution of requests related to arbitral awards cancellation, the competent Court is the Court where the arbitral tribunal has issued the arbitral award. The location at which the arbitral tribunal has issued an arbitral award is the place stated in the arbitral award.

Agree to select or not agree to select the competent courts?

To select or not to select the competent Courts with respect to arbitral proceedings in general and the arbitral proceedings by institutional arbitration in particular is the right and depends on the consideration of the contracting parties.

If the contracting parties deem that the legal provisions on the Court’s jurisdiction for all of the foregoing matters are appropriate, no agreement on this is necessary.

But if the parties want a single Court with jurisdiction over all of the foregoing matters, an agreement on this is necessary. Similarly, the parties must enter into an agreement, if they want to appoint a Court different from the law with jurisdiction over one, some or all of the foregoing matters.

Instructions for the agreement on the selection of a competent court

HTA Commercial Arbitration Center proposes the content of the agreement to select a competent Court in the arbitration agreement as follows:

• To select a single competent Court:

“The Court with jurisdiction over arbitral proceedings is the People’s Court of the province / city …”

• To select one or several Courts with jurisdiction over one or several matters related to arbitral proceedings:

“The Court with jurisdiction over … (for example, the settlement of a complaint about the arbitral tribunal’s decision on the validity or the feasibility of the arbitration agreement or about the arbitral tribunal’s jurisdiction) is the People’s Court of province / city …;

The Court with jurisdiction over … (for example, the decision to apply urgent interim measures as requested) is the People’s Court of the province / city …;

The Court with jurisdiction over other matters related to the arbitral proceedings is the Court in accordance with the law. ”