The Republic of Cyprus is a Contracting party to New York Convention.
Since December 1980 the Republic of Cyprus, has been a contracting party to the New York Convention, on the recognition, registration and enforcement of foreign arbitral awards. (“the New York Convention”)
The only reservations, made by the Republic of Cyprus, for the application of the New York Convention are:
(i) That Cyprus will apply the Convention on the basis of reciprocity, to the recognition and enforcement of awards made, only in the territory of another contracting state; and
(ii) That Cyprus will apply the Convention only to differences arising out of legal relationships, whether contractual, or not, which are considered as commercial, under its national law.
Requirements for registration and enforcement:
The applicant shall file an application to register and enforce his arbitral award, supported by an affidavit, attaching as EXHIBITS, the documents expressly stated in Article IV, of the Convention.
Article IV is set up to facilitate enforcement by requiring a minimum of conditions to be fulfilled, by the party, seeking enforcement of a convention award. That party, shall supply the duly authenticated original award, or a duly certified copy thereof, and the original arbitration agreement, or a duly certified copy thereof.
An authentication of a document, is the formality by which, the signature thereon, is attested to be genuine.
The certification of a copy, is the formality by which, a copy is attested to be the true copy of the original.
The second paragraph of Article IV, provides that a party seeking enforcement, has to produce a translation of the arbitral award, and the arbitration agreement, if they are not made on the official language of the Country, where enforcement of the award is sought.
Translation of arbitral awards, and arbitration agreements for the purposes of Article IV of the Convention, shall be made by the official governmental body of the Republic of Cyprus, which is the Press and Information Office (P.I.O).
PRO-ENFORCEMENT BIAS OF CYPRUS COURTS
The Conventions’ seven enumerated defenses, are applied narrowly by the Cyprus courts, and the burden of proof, remains very much with the party opposing enforcement.
In general, Cypriot courts have resisted allowing defenses beyond those specified in Article V, although arguments based on procedural considerations, have met with some success.
CAN INTERIM RELIEF BE GRANTED IN THE CONTEXT OF AN ENFORCEMENT APPLICATION?
Cyprus courts have jurisdiction to grant interim relief, in the context of an application for registration and enforcement of a foreign arbitral award, pursuant to the provisions of the New York Convention.
Such Interim relief includes inter alia:
a) Freezing orders, blocking assets held by the judgment debtor;
b) Chambra injunctions, blocking assets beneficially owned by judgment debtor, but held into the name of third parties;
c) Discovery or Norwich Pharmakal orders, ordering third parties (Banks, Service providers etc) to disclose information and documents in order to assist the Claimant, to prove and plead his case, to trace assets, to identify other wrongdoers etc;
d) Gagging orders, blocking a third party (i.e. Bank, Service provider) not to alert the defendant, about the commencement of the legal proceedings by the Claimant;
e) Appointment of an interim receiver to assist in the preservation of the assets blocked by an injunction; and
f) Appointment of a receiver by way of equitable execution, in order to assist in the execution of the judgment, against the assets, which are beneficially owned by the judgment debtor.
For further information on this topic please contact Mr. Soteris Pittas at SOTERIS PITTAS & CO LLC, by telephone (+357 25 028460) or by fax (+357 25 028461) or by e-mail (email@example.com).
The statements contained in this publication are not legal opinions and readers should not act on the basis of such statements without first consulting a lawyer.