CYPRUS: ENFORCEMENT OF ARBITRATION AWARDS
In a recent judgment, a Cypriot 1st Instance Court, decided in the context of interlocutory proceedings for the issue of interim relief, that arbitration awards, may be enforced in Cyprus, either through the mechanism of the New York Convention, or at Common law by an action based on the arbitral award.
The use of the mechanism of the New York Convention, is not mandatory, and provides merely an alternative, and simpler procedure for the enforcement of an award in form of an order, or judgment commenced by Summons rather by Writ.
At common law, an arbitration award can be enforced by bringing an action on it, and this applies to local arbitral awards, and to foreign arbitral awards.
If an action is brought to enforce a final award, the Court will presume that the award is complete, and it will enforce same accordingly.
In reaching the above decision, the Cypriot Court relied on inter alia references of leading English textbooks on arbitration like Russel on Arbitration, and Arbitration Law by Robert Merkin.
Article VII of the New York Convention states, as follows:
“The provision of the present Convention shall not affect the validity of multilateral or bilateral agreements concerning the recognition and enforcement or arbitral awards entered into by the Contracting States nor deprive any interested party of any right he may have to avail himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such award is sought to be relied upon” (emphasis added).
The above provision of the New York Convention expressly permits the use of any other mechanism of enforcement of arbitral award, provided by the National law.
For further information on this topic please contact
Mr. Soteris Pittas( spittas@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
