CYPRUS: Anti-Suit Injunction issued by Arbitral Tribunal in an LCIA arbitration case conducted in London, prohibiting the commencement and/or continuation of legal proceedings before Cyprus Courts.
A Claimant of an LCIA Arbitration case, conducted in London, applied and obtained before a Cyprus Court, interim relief in aid and in support of his LCIA Arbitral case, pursuant to the Law 101/87, adopting in Cyprus the Uncitral Model Law, on International Commercial Arbitration (“the Law”).
The Claimant filed its application for interim relief, before Cyprus Courts, some days after the constitution of the LCIA Arbitral Tribunal.
The Respondents to the LCIA Arbitral case, applied before the LCIA Arbitral Tribunal for an anti-suit injunction, prohibiting or ordering the Claimant, to discontinue or terminate the above Cyprus Court proceedings.
The LCIA Arbitral Tribunal, after an inter-parties hearing, issued the requested anti-suit injunction, against the Claimant.
The Respondents presented as evidence before the Cyprus Court, the issue and existence of the arbitrator’s anti-suit injunction, alleging that Cyprus Court, should dismiss the application for interim relief, as well as to cancel the ex parte injunctions obtained, by the Claimant.
The Cyprus Court decided that such an anti-suit injunction issued by arbitrators is not binding on Cyprus Courts, in the exercise of their jurisdiction to grant interim relief pursuant to the Law.
The Cyprus Courts did not decide, whether the issue or existence of such an anti-suit injunction, might have an impact on its discretion to grant or not such interim relief, because the ex parte injunctions were cancelled on procedural ground.
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