This Country Answer reflects the state of the law as of 18 July 2008. Please refer to the explanations in the chapter entitled Disclaimer and Preliminary Note.

A. The Contracting State and the New York Convention

1. Name of Contracting State (also specify jurisdiction(s), if relevant)

Islamic Republic of Iran.

2. Date of entry into force of the New York Convention

13 January 2002.

(Source: United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Official Gazette No. 16374, 1 May 2001.)

3. Has any reservation been made under Art. I(3) of the New York Convention regarding:

(a) reciprocity

Iran has declared a reciprocity reservation under Art. I(3) of the New York Convention in the following terms: 'The Government of the Islamic Republic of Iran declares that it will apply the Convention only to recognition and enforcement of awards made in the territory of another Contracting State.'

(b) commercial relationships

Iran has declared a 'commercial relationships' reservation under Art. I(3) of the New York Convention in the following terms: 'The Government of the Islamic Republic of Iran declares that it will apply the Convention only to differences arising out of legal relationships, whether contractual or not, which are considered as commercial under the laws of the Islamic Republic of Iran.' Iran has also made a so-called reservation under Art. 139 of the Constitution of the Islamic Republic of Iran regarding public and State property.

(Source: United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Official Gazette No. 16374, 1 May 2001.)

4. In addition to arbitral awards made in the territory of another State, the New York Convention (Art. I(1)) also applies to arbitral awards not considered as domestic awards in the State where recognition and enforcement are sought. Are there any awards rendered in your country that are not considered as domestic awards such that the New York Convention and the answers to this Questionnaire are applicable to them?

No.

B. National sources of law

5. What specific sources of law are applicable to recognition and enforcement of foreign awards (e.g. statutes, regulations, codes, directives, other legal instruments)?

(i) United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Official Gazette No.16374, 1 May 2001, enacting the New York Convention; (ii) International Commercial Arbitration Law, Official Gazette No. 15335, 19 Oct. 1997; Civil Procedure Law, Official Gazette No. 16070, 1 May 2000; (iii) Enforcement of Civil Awards Law, 23 Oct. 1977; (iv) Criminal Procedure Law, Official Gazette No. 15911, 10 Oct. 1999.

C. Limitation periods (time limits)

6.

(a) Is there a limitation period (time limit) applicable to the commencement of legal proceedings for recognition and enforcement of foreign awards?

(b) If yes, what is the applicable limitation period (time limit) and when does it start running?

No. There is no limitation period applicable to the recognition and enforcement of foreign awards under Iranian law.

D. National courts and court proceedings

7. What authority or court has jurisdiction over recognition and enforcement of foreign awards?

(i) If the claim is against immovable property, the court in whose jurisdiction that immovable property is located; otherwise: (ii) the court in whose jurisdiction the respondent's domicile is situated; if the respondent has no domicile in Iran, then (iii) the court in whose jurisdiction the respondent has a temporary residence; if the respondent has no such temporary residence in Iran, then (iv) the court in whose jurisdiction the respondent has immovable property; and if there is no such immovable property, then (v) the court in whose jurisdiction the applicant's domicile is situated.

(Source: Civil Procedure Law of 2000, Arts. 11 and 488.)

8. What requirements, if any, must be met for the authority or court to accept jurisdiction over recognition and enforcement of foreign awards (e.g. domicile or assets of the respondent in the jurisdiction, etc.)?

The applicant must have a legal interest in seeking enforcement of the award.

(Source: Civil Procedure Law of 2000, Art. 2.)

9. Is the first decision granting or denying recognition and enforcement obtained through ex parte or inter partes proceedings?

It is granted through ex parte proceedings, with no hearing required.

(Source: Civil Procedure Law of 2000, Art. 488.)

10.

(a) Is the first decision granting or denying recognition and enforcement subject to any form of appeal or recourse?

No. The court's decision in granting recognition and enforcement is in practice made in the form of writ of execution and as such is not subject to any form of recourse or appeal. However, if there is an error in the issuance of a writ of execution, the court that issued the writ can revoke or rectify it.

(Source: Enforcement of Civil Awards Law, Art. 11.)

However if a court opts to makes its decision (especially denying recognition and enforcement) in the form of an 'order' or a 'judgment', such order or judgment will be subject to appeal in accordance with the general rules for appeals.

(b) How many levels of appeal or recourse are available against this decision?

The law is not clear; however, under the general principles of procedural law, a party may appeal to the court of revision (appeal court) of the relevant province and the decision of this court is subject to an appeal to the Supreme Court.

(Source: Civil Procedure Law of 2000.)

11. What is the earliest stage in legal proceedings for enforcement of foreign arbitral awards at which a party can obtain execution against assets (i.e. party actually obtains possession of assets as opposed to simply freezing assets)?

After the expiry of 10 days from the date on which the respondent has been officially notified of the writ of execution.

(Source: Enforcement of Civil Awards Law, Arts. 34 and 41.)

E. Evidence required

12.

(a) What evidence must be supplied for recognition and enforcement of foreign awards (e.g. arbitral award, contract containing arbitration clause, affidavits, witness statements, etc.)?

(i) The duly authenticated original award or a duly certified copy thereof; (ii) the original arbitration agreement or a duly certified copy thereof.

(Source: United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Art. 4.)

(b) Is it necessary to provide the entire document or only certain parts (e.g. entire contract or only arbitration clause)?

It is not clear due to lack of precedent. The main applicable regulation is Art. IV of the New York Convention, which has been adopted into Iranian domestic law.

(c) Are originals or duly certified copies required?

The applicant can file either original or duly certified copies of the documents.

(Source: Civil Procedure Law, Art. 57.)

(d) How many originals or duly certified copies are required?

Generally, two copies are sufficient but if there is more than one respondent, the applicant must file an additional copy for each additional respondent.

(Source: Civil Procedure Law, Art. 60.)

(e) Does the authority or court keep the originals that are filed?

Yes.

13.

(a) Is it necessary to provide a translation of the documents supplied?

Yes.

(b) If yes, into what language?

Persian (Farsi), the official language of the country.

(c) Is it necessary for the translations to be certified and, if yes, by whom (official or sworn translator, diplomatic or consular agent (of which country?) or some other person)?

Yes, it is necessary to provide a Persian translation of each document, certified by an official translator or by a diplomatic or consular agent of Iran.

(Source: Civil Procedure Law, Art. 58.)

(d) Is it necessary to provide a full translation of the documents or only a translation of certain parts (e.g. entire award or only part setting forth the decisions; entire contract or only arbitration clause)?

It is not clear, as there are no express statutory provisions and no precedents. Usually, the entire document must be translated.

F. Stay of enforcement

14.

(a) Can the authority or court stay legal proceedings for recognition and enforcement pending the outcome of an application to set aside or suspend the foreign award before the competent authority referred to in Art. V(1)(e) of the New York Convention?

Yes.

(Source: United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Art. 6.)

(b) On what other grounds, if any, can the authority or court stay legal proceedings for recognition and enforcement (e.g. forum non conveniens)?

None.

(c) Is the granting of a stay of legal proceedings for recognition and enforcement conditional on the provision of security?

The court can, at its discretion and also if the applicant so requests, grant a stay of legal proceedings for recognition and enforcement conditional on the provision of appropriate security.

(Source: United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Art. 6.)

G. Confidentiality

15.

(a) Do the documents filed in legal proceedings for recognition and enforcement form part of the public record? If yes, can any steps be taken to preserve the confidentiality of such documents?

If the case involves an issue of national security or confidential government information, then the court may decide that the documents filed be preserved as confidential. In practice, however, the documents filed in all legal proceedings are confidential.

(Source: Criminal Procedure Law, Art. 188.)

(b) If there are hearings on recognition and enforcement, are such hearings confidential? If not, can steps be taken to maintain the confidentiality of the legal proceedings?

As a general rule, all hearings are public unless the parties request otherwise. There is usually no hearing for the recognition and enforcement of foreign arbitral awards, however, unless the court needs some explanation from the parties.

(Source: Civil Procedure Law, Art. 488; Constitution of Iran, Art. 165.)

(c) Are judgments on recognition and enforcement published? If yes, can steps be taken to remove the names of the parties or avoid publication of confidential information (such as business or State secrets)?

There are no statutory provisions requiring or preventing the publication of judgments or court decisions, including those on the enforcement of foreign awards. In the event of publication, the practice is to omit names and other particulars of the parties.

H. Other issues

16. When, if ever, can a party obtain recognition and enforcement of interim or partial foreign awards?

There are no specific regulations on the recognition and enforcement of interim or partial foreign awards. However, insofar as the arbitral decision can be qualified as 'an award', it is subject to the general rules of enforcement.

17. When, if ever, can a party obtain recognition and enforcement of non-monetary relief in foreign arbitral awards (e.g. order requiring a party to deliver up share certificates or other property)?

The law is considered to be the same for the enforcement of non-monetary as for monetary foreign awards.

18. When, if ever, can a party obtain recognition and enforcement of only part of the relief granted in foreign awards?

It is considered that it is open to an applicant to formulate his relief so as to obtain the recognition and enforcement of part of the relief granted in a foreign award.

19. When, if ever, can a party obtain recognition and enforcement of foreign awards which have been set aside by the competent authority referred to in Art. V(1)(e) of the New York Convention?

There is no basis for recognition and enforcement of foreign awards which have been set aside by the competent authority referred to in Art. V(1)(e) of the New York Convention.

(Source: United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards Law, Art. 5(1).)

20. Are there any other procedural or practical requirements relating to recognition and enforcement of foreign awards which are worth mentioning (e.g. unusually high court costs, filing fees, stamp duties, obligation to post security as a condition for seeking recognition and enforcement, obligation to identify the assets that will be the object of enforcement, etc.)?

The law is not clear in this respect, but it is the practice of some courts to require stamp duties amounting to IRR 6,000 for the recognition and enforcement of arbitral awards.

Country Rapporteur: Mohsen Mohebi.