Enforcement in Cyprus of an Arbitration Award rendered in another country.

It is essential that once an award is made, the successful party is able to enforce it in the country in which the losing party has assets. To apply for enforcement, an enforceable document (a court judgment or a deed) is needed. There are special rules for having a judgment given in another country declared enforceable. The Convention on the Recognition and Enforcement of Foreign Arbitral Awards was passed in New York on the 10th June 1958 and signed by Cyprus on the 29th December 1980 (the "Convention"). The Convention was incorporated in the Convention on the Recognition and Enforcement of Foreign Abritral Awards Law of 1979 (Law 84/1979). The Convention applies to the recognition and enforcement of awards made in the territory of a State other than the State where the recognition and enforcement of such awards are sought, and arising out of differences between persons, whether physical or legal.

Pursuant to the Convention, each contracting state shall recognise arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the articles of the Convention. There shall not be imposed substantially more onerous conditions or higher fees and charges on the recognition or enforcement of arbitral awards to which the Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards.

For the enforcement and execution of foreign judgments in Cyprus, Law 121(1)/2000 was passed for the Recognition, Enforcement and Execution of Foreign Judgments. The Minister of Justice and Public Order has been assigned as the competent authority, and covers any decision of a foreign Court that is a decision of a Court or arbitral body or body of another state that the Republic is connected with an Agreement for the subject of mutual recognition and enforcement of court and arbίtral decisions, and which the said decision is enforced in the state in which was published and it includes also any enforceable intermediate or interim judgement or order.

The procedure which is followed pursuant to this Law for the registration, recognition and enforcement of judgement of a foreign court is as follows:

The procedure is initiated by an application by summons accompanied by affidavit in accordance with the Civil Procedure Rules, with the necessary adjustments in which application the applicant may be the Minister of Justice and Public Order or the person in favour of whom the judgement of foreign court was given and respondent the person against whom recognition, enforcement and execution is sought. (Section 5. (1) (a)).

Only when the judgement was issued in default of appearance the procedure begins with ex parte application accompanied by Affidavit.

The hearing date of the application is fixed on a time not exceeding 4 weeks from the date of the filing of the application. (Section 5. (1) (b)).

Copy of the application is served after its filing without any delay to the respondent. (Section 5. (1) (c)).

The respondent if so wishes may submit a written Objection supported by Affidavit 2 days before the date of the hearing of the application. (Section 5. (1) (d)).

The reasons on which the respondent may ground his objection are limited to the matter of jurisdiction of the court or to the proven satisfaction of the judgment and the existence of the conditions set out in the convention in relation to its applicability. (Section 5. (1) (e))

 The Court shall not grant extension of time for the filing of the written objection unless it is convinced that special reasons exist for a reasonable extension time. (Section 5. (1) (f)).

After the hearing the Court shall deliver its judgement as soon as possible (Section 5. (1) (h)).