Home  >  Cases & Judgement  >  Judgment document

[(2020) Q-96-R-G-No.1]The First Intermediate People's Court of Hainan Provinc Civil Ruling

The First Intermediate People's Court of Hainan Province
Civil Ruling
(2020) Q-96-R-G-No.1
Applicant: AVEVA East Asia Limited, having its registered address at: Grand Millennium Plaza, No.108 Queen's Road Central, Hong Kong.
Legal Representative: Evgeny Fedotov, a director of the Company.
Attorney: Guan Huirong, a lawyer of Shanghai Branch of Beijing Long An Law Firm.
Respondent: Jinhai Intelligent Manufacturing Co., Ltd., domiciled at: No. 1, Jinhai Avenue, Changtu Town, Daishan County, Zhoushan City, Zhejiang Province.
Legal Representative: Shu Fen, general manager.
Attorney: Jiang Fubao, a staff of the Company.
With respect to the Case that the Applicant AVEVA East Asia Limited (hereinafter referred to as “AVEVA”) applied for the implementation of the Arbitration Award (HKIAC/PA18087) issued by the Hong Kong International Arbitration Center of the Hong Kong Special Administrative Region on March 13, 2019, a Collegiate Bench was organized by the Court to conduct a review. The Case has been closed.
The AVEVA stated in its application that the dispute between the Applicant and the Respondent on software product license was finalized by the Hong Kong International Arbitration Center in the final award numbered HKIAC/PA18087, which has become legally effective. The person subject to enforcement refused to pay the debts of software license fees, interest, arbitration fees, and attorney fees, due to which the Court is hereby asked for enforcement. In accordance with the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws to the Calculation of Debt Interest During the Delay in Performance in the Execution Procedure (F-S [2014] No.8) and other judicial interpretations,  the Court is hereby asked for requesting the Respondent to pay the deferred interests in this respect.
The Respondent Jinhai Intelligent Manufacturing Co., Ltd. agued that: 1. The Applicant should go through formalities for notarization and special delivery of the arbitration award submitted by it in accordance with the Notice of the Supreme People's Court and the Ministry of Justice on the Validity of Hong Kong-related Notary Documents. 2. The list submitted by the Applicant in accordance with the Arrangement of the Supreme People's Court on the Mutual Enforcement of Arbitration Awards between China Mainland and Hong Kong Special Administrative Region (hereinafter referred to as the “the Arrangements”) did not indicate the location and status of the Respondent’s property. 3. The arbitration award calculated interest up to the date of the award, and did not award the interest after the date of the award. The Applicant has no right to apply for the execution of this part of interests. 4. English law governs the disputes involved, and the arbitration tribunal has calculated the interest reasonably. The Applicant shall not be entitled to request a double payment of interest in accordance with Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Laws to the Calculation of Debt Interest During the Delay in Performance in the Execution Procedure (F-S [2014] No.8).
This Court, upon investigation and review, found that on September 11, 2009, AVEVA and Zhoushan Jinhaiwan Vessel Industry Co., Ltd. (which was renamed Jinhai Heavy Industries Co., Ltd. in 2009 and Jinhai Intelligent Manufacturing Co., Ltd. in 2020) concluded the AVEVA Product License. Of this, Article 19 of the Product License “Binding Arbitration” stipulates that any dispute between the parties shall be submitted to arbitration in accordance with the UNCITRAL rules of the Hong Kong International Arbitration Center in effect, and the place of arbitration shall be Hong Kong Special Administrative Region of China. Thereafter, the Applicant applied to Hong Kong International Arbitration Center (hereinafter referred to as “HKIAC”) for arbitration as a result of a dispute that could not be resolved through friendly negotiation. HKIAC held an oral hearing at its Shanghai office on March 18, 2019, and made an arbitration award on March 31, 2019, ordering that: 1. the Respondent shall pay the annual license fee of US$316,000 to the Applicant; 2. The Respondent shall pay the accumulative interest of the above license fee 74324.93 USD (as of March 31, 2019) to the Applicant; 3. the Respondent shall pay 50,000 yuan attorney fee, arbitration fee of 85374 yuan, HKIAC’s management fee of HKD 31319.54 to the Applicant; 4. All the payments above shall be paid by the Respondent within 21 natural days after receiving the arbitration award. This Court also found that the parties did not raise any objection to the arbitration award itself.
This Court upholds that the place of arbitration involved herein is the Kong Special Administrative Region. For this purpose, this Case shall apply to the Arrangement of the Supreme People's Court on the Mutual Enforcement of Arbitration Awards between China Mainland and Hong Kong Special Administrative Region and Supplementary Arrangement of the Supreme People's Court on the Mutual Enforcement of Arbitration Awards between China Mainland and Hong Kong Special Administrative Region Subject to the Arrangements and the Supplementary Arrangements, the ruling involved herein did not go through the formalities of notarization and delivery; it is not a case of non-enforcement. Meanwhile, the List of Property of the Person Subject to Enforcement submitted by the Applicant has fully explained the property status of the Respondent. With respect to the interest of the arbitration award, it shall belong to the execution stage and does not fall within the scope of this Case.
In conclusion, with regard to the AVEVA's application for the recognition and enforcement of the arbitration award of Hong Kong Special Administrative Region, this Court hereby rules as follows in accordance with Notification of the Supreme People's Court on the Centralized Management of Related Issues in Judicial Review Cases of Arbitration:
The validity of the arbitration award numbered HKIAC/PA18087 made by HKIAC in Hong Kong is hereby recognized.
The application fee of 400 yuan shall be borne by the Respondent Jinhai Intelligent Manufacturing Co., Ltd.
After this Civil Ruling reaches, above ruling shall be executed immediately.
 
Chief Judge: Su Zhihui
Judge: Lin Zhen
Judge: Zhang Longjian
 
December 1, 2020
Court Clerk: Feng Xuebo


copyright © 2020 Hainan High People's Court

Qiong ICP 05002153