Study on the Legal Consequences of Revocation of the Appellate Award in the Internal Appellate Mechanism for Arbitration

The traditional principle of finality in arbitration has certain drawbacks, and the huge risk costs it may lead to make some international commercial parties no longer use arbitration as their first choice for dispute resolution. However, the appellate mechanism for arbitration is not yet well developed, and the legal consequences of revocation of the appellate award need to be further clarified. In this article, I will analyse the academic opinions in China and abroad, and discuss the validity of the appellate award and the original award, the validity of these two kinds of awards after the appellate award is set aside, and the understanding of the principle of “non bis in idem” after being revoked, so as to draw conclusions on how to determine the validity of the arbitration award after the appellate award is set aside under different circumstances. Based on analysis above, my suggestion is that the same dispute after the revocation of the appellate award should be arbitrated by entering into a new arbitration agreement or by bringing a lawsuit.