Execution of foreign arbitration judgments


In today’s world, with the advancement of communication between people, the field of activity, cooperation and participation of individuals in the field of business issues is constantly evolving and developing. Setting up domestic business contracts to meet trade needs has created a commitment and the parties will be required to enforce their contracts. Therefore, if a disagreement occurs about the implementation of the obligation, and one of the parties refuses to comply with it, the commercial action may be requested from the court. Another reference that can be made with respect to as promptly as possible, and in the appropriate area to be enforceable, Is a judgments.

With the development of trade and business contracts, internationally and across national boundaries, it is natural that trade commitments are between individuals and from different countries, in which case, if the other party, having regard to personal or international circumstances, can not to fulfill its obligation, or to perform its commercial obligation in relation to fulfillment of its obligation, it can be demanded by the party to execute the contract and claim for losses. Considering the importance of speed in fulfilling obligations International business and impossibility to deal with lawsuit related to the subject of international trade agreement obligations in the courts In each of the countries, an international arbitration tribunal which is formed by agreement between the parties to the dispute shall issue a judgment that the prevailing party person may claim execution of foreign arbitration awards in another country.

This article examines the implementation of foreign arbitration awards, demands for and enforcement of foreign arbitration awards issued by the International Law and Justice institution ,Talieh Edalat and Mehr Parsian,to the management of Dr. Mohammad Reza Mehri.

Questions related to the implementation of foreign arbitration awards

What is an institutional international business and in what cases does it come in?

What is the condition for referring the parties to the international arbitration?

What are the conditions for implementing foreign arbitration awards in Iran?

What is the scope of foreign arbitration?

What is the legal prohibition of foreign arbitration?

International Business Arbitration and its Entry Areas

International commercial arbitration as a reference, whenever a foreign national controversy conflicts with the Iranian side, makes the issuance of votes and grounds for the execution of foreign arbitration awards. International commercial arbitration, taking into account the common issues in commercial relations Which includes the sale and purchase of goods and services, transportation of goods, insurance, finance, consultancy, investment, technical cooperation, representation, commission, contracting, can be taken as soon as possible.

Referral of dispute between the parties to international arbitration

In international commercial contracts, considering that one of the elements of the contract is one of the parties to the foreign element, so, in the event of a dispute, the arbitral tribunal has the jurisdiction to hear the dispute between the parties, thus considering the reasons and the parties’ documents can be issued and verdict.

The most important condition for dealing with differences between parties in international commercial arbitration is the existence of an agreement between the parties to resolve the dispute by the reference authority, this can be in the form of a written agreement or in the form of condition in the commercial contract. In this context, also the place of arbitration, with the law governing arbitration, to the criterion of proceedings should be determined. If the parties do not choose and consent to the ruler’s authority to issue a vote, including the rule of conflict resolution, the referee shall determine the law in accordance with international rules.

Upon the end of the arbitration proceedings, the decision and the ruling are issued in accordance with the lawsuit, after which it is time to execute the arbitration award. The sentenced person can request execution of foreign arbitration judgments in a country other than the country of arbitration; therefore, the possibility of applying for foreign arbitration judgments in Iran is possible, and this can have the effect of two things:

  1. Due to the fact that the subject is prevalent in international business contracts in the field of finance, it is possible that, in order to enforce a foreign arbitration decision, a convicted person has property in Iran that can be obtained and seized his property there by virtue of a foreign arbitral judgment and the request of the sentenced person.
  2. The parties, by virtue of the arbitration agreement, choose and agree to Iran as the competent state to execute foreign judgments by the judicial authorities.

Requirements for the implementation of foreign arbitration awards in Iran

Considering that Iran has joined the New York Convention for the purpose of regulating and enforcing the implementation of foreign arbitration awards, only with the following conditions, the competent judicial authorities in Iran can enforce foreign arbitration judgments:

– The Islamic Republic of Iran will apply the Convention exclusively in respect of disputes arising out of contractual or non-contractual legal relationships that are considered commercially legal in the Islamic Republic of Iran.

– The Islamic Republic of Iran only recognizes and enforces the Convention by virtue of its interrelationship, acts and rulings which have been issued in the territory of one of the member States of the Convention.

– If the issue of dispute in international commercial arbitration relates to property and government resources, it should be approved by the Council of Ministers and Parliament in accordance with Article 139 of the Constitution.

The method of executing foreign arbitration judgments

After proper consideration of the International arbitration award and subsequent submission of bills and defense to the parties, Referee according to the rules governing arbitration, and also the international commercial practice, which is one of the most important sources in the assignment to be addressed, will issue a vote.

If the venue is to hear the dispute between the parties in the arbitration is a place other than Iran, However, if the main law and the law of merit is the enforcement of Iran’s judgments, Or, it is the place of dispute settlement in Iran, but the main law governing arbitration is foreign law,

The judgment issued by the referee will have an external element and, as a result, will be the arbitration judgment. After the issuance of foreign arbitral awards, since the proceedings have been terminated, it is time to execute foreign arbitration judgments, and the sentenced person can apply for the enforcement of foreign arbitration judgments.

In order to enforce foreign arbitral awards in Iran, there are circumstances in which resources are used as guidance for the enforcement of foreign arbitration awards which includes civil enforcement law as well as the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, set up in New York. As a country party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, if one of the parties to the dispute requests to identify and execute foreign arbitration awards in Iran, It should ask the court and the competent authorities in Iran. Identification is the first step in the implementation of foreign arbitration awards, and therefore, according to the New York Convention law, a petitioner requesting a competent court in Iran asks for identification.

The identification of an action is that the court will review the provisions of international arbitration awards, and if there is no legal prohibition to enforce foreign arbitral awards, the order to execute foreign arbitration judgments is issued in the form of internal injunctions.

Therefore, the applicant for the recognition and enforcement of foreign arbitration awards must consider the following provisions:

– The original version of certified copy or the original image of the verdict.

-Obtaining a document based on the existence of an international arbitration agreement between the parties to the dispute, which can be a conditional contract or a separate arbitration agreement.

– Any government committed to arbitration, according to the Iranian Court of Justice, Whose verdict is documented as an applicable ruling, it will identify and enforce them.

The costs of proceedings for the enforcement of foreign arbitration judgments shall be in accordance with the costs of the enforcement of domestic injunctions.

– The competent authority to execute foreign arbitration awards in Iran is the district court of the place of residence or live of the convicted person, and if the place of residence is not known in Iran, the Tehran City Court will be determined.

Prohibitions to enforce foreign arbitration

In the event that one of the following occurs during the execution of foreign arbitral awards, the competent authority may, in accordance with the request of the Condemnable person, prohibit the execution of foreign arbitration awards in Iran:

– In the event of non-eligibility of the parties to the arbitration agreement or disapproval of the arbitration agreement by the competent law, Handled by competent law.

– A valid notice to the party against whom the cited judgment regarding the appointment of the referee has not been adjudicated, or has not been able to make any other statement.

– The ruling on the subject is a dispute in which the condition for referral to arbitration is not foreseen.

– The protocol necessary for the arbitration and investigation are not mutually agreed upon or in accordance with the law.

– The foreign arbitral award is not obligatory, or the law of the country has been violated or suspended.

In other cases, the competent court in Iran may refrain from identifying and executing foreign arbitration judgments:

The issue of disagreement cannot be resolved through arbitration in accordance with the law of the country of Iran.

– Identifying or executing foreign arbitration awards are contrary to the public order of Iran.

Expert lawyer in domestic arbitration and international commercial arbitration

International Law and Justice Institute,Talieh Edalat and Mehr Parsian,to the management of Dr. Mohammad Reza Mehri. Sergeant-at-law with prominent and expert lawyers, on issues related to international arbitration and legal action on the implementation of foreign arbitration awards, acting to advise and accept the advocacy of your loved ones on matters of concern.

Author: Seyyed Mohsen Mirghasemi

Master of Private Law

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