STATEMENT OF DEFENSE OF THE RESPONDENT IN ARBITRATION PROCEEDINGS AT MCAC

In commercial arbitration proceedings, the Statement of Defense is one of the key documents presenting the respondent’s position, arguments, and legal grounds in response to the claimant’s claims. This is not only a procedural right but also an important basis for the Arbitral Tribunal to fully consider the parties’ opinions before rendering an award.

1. Basic contents of the Statement of Defense

Clause 1, Article 35 of the 2010 Law on Commercial Arbitration provides that the respondent’s Statement of Defense shall include the following basic contents:

• Date of the Statement of Defense;
• Name and address of the respondent;
• Grounds and evidence for the defense;
• Name and address of the arbitrator selected or request for the appointment of an arbitrator.

Pursuant to Clause 1, Article 9 of the MCAC Rules of Procedure, the Statement of Defense submitted to the Centre shall contain:

• Date of the Statement of Defense;
• Name and address of the respondent;
• Grounds for the defense;
• Name of the arbitrator selected by the respondent or request for the Centre to appoint an arbitrator;
• Signature of the lawful representative;
• Objection to the arbitral jurisdiction (if any).

Notably, where the respondent believes that:

• The arbitration agreement does not exist;
• The arbitration agreement is invalid; or
• The arbitration agreement is incapable of being performed,

the respondent must clearly state such objection in the Statement of Defense. Otherwise, the respondent may lose the right to object later in accordance with the law and the MCAC Rules of Procedure.

2. Time limit for submitting the Statement of Defense

Pursuant to Clause 2, Article 35 of the 2010 Law on Commercial Arbitration:

“For disputes resolved at an arbitration centre, unless otherwise agreed by the parties or otherwise provided by the arbitration centre’s rules of procedure, within 30 days from the date of receipt of the statement of claim and accompanying documents, the respondent shall submit its statement of defense to the arbitration centre. At the request of one or more parties, this time limit may be extended by the arbitration centre based on the specific circumstances of the case.”

Clause 1, Article 9 of the MCAC Rules of Procedure further provides:

“Unless otherwise agreed by the parties, within 30 days from the day following the date of receipt of the Notice, Statement of Claim, Arbitration Agreement and other relevant documents, the respondent shall submit the Statement of Defense to the Centre.”

In addition, the respondent may:

• Submit supporting documents and evidence;
• Appoint an arbitrator;
• Raise counterclaims against the claimant.

Where an extension is necessary, the respondent may request the Centre or the Arbitral Tribunal to consider an extension based on the nature and complexity of the dispute.

3. Legal consequences if the respondent fails to submit the Statement of Defense

In practice, some respondents believe that failure to respond or participate in the proceedings may affect the dispute resolution process. However, under the mechanism of commercial arbitration, failure to submit a Statement of Defense does not invalidate the arbitration agreement nor suspend the arbitral proceedings.

The Arbitral Tribunal may still:

• Continue resolving the dispute;
• Examine the evidence and documents available in the case file;
• Conduct hearings in accordance with the rules;
• Render an arbitral award where sufficient grounds exist.

According to Clause 4, Article 9 of the MCAC Rules of Procedure, arbitral proceedings shall continue even if the respondent fails to submit a Statement of Defense.

Therefore, active participation in the proceedings and timely submission of a complete Statement of Defense are essential to ensure the respondent’s right to present arguments and defend its interests in arbitration proceedings.

The article above has analyzed in detail is "Statement of defense of the respondent in arbitration proceedings at mcac". For more detailed information or legal assistance, please contact the MCAC Secretariat:

• Hotline: 0935 925 068 - 0236 3656799
• Email: contact@mcac.vn
• Read more: Benefits and risks of using artificial intelligence in Arbitration