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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
This ICC Guide to National Rules of Procedure for Recognition and Enforcement of Foreign Awards under the New York Convention is the third, updated edition to mark the 60th anniversary of the New York Convention. Country Answers, which reflect the state of law at 1 October 2018, have been provided in response to a Questionnaire drawn up by a task force of the ICC Commission on Arbitration and ADR.
A. The Contracting State and the New York Convention
1. Name of Contracting State (also specify jurisdiction(s), if relevant)
Republic of Cyprus.
2. Date of entry into force of the New York Convention
2 Nov. 1979.
(Source: Law Regarding the Convention on the Recognition and Enforcement of Foreign Arbitral Awards no. 84/1979; hereinafter ‘NYCL 1979’.)
3. Has any reservation been made under Art. I(3) of the New York Convention regarding:
(a) reciprocity?
Yes.
(b) commercial relationships?
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?
The International Commercial Arbitration Law no. 101/1987 (hereinafter ‘ICAL 1987’), which implemented the UNCITRAL Model Law in Cyprus, treats certain arbitrations seated in Cyprus as ‘international’. However, there is no Cypriot legislation or case law designating arbitral awards made in Cyprus in international arbitration proceedings as non-domestic. Accordingly, and whilst the matter has never been specifically considered by the Cypriot courts, it is likely that Cypriot law applies the New York Convention only to awards made in another Member State, and does not recognise a separate, wider, concept of a ‘non-domestic’ award for the purposes of Art. I(1) of the New York Convention.
(Source: NYCL 1979, Annex, Part I, Art. I; ICAL 1987, sect. 2.)
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)?
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?
Cypriot legislation does not specify a limitation period for an action to enforce a foreign award (by contrast, the United Kingdom Limitation Act 1980, which is in some respects similar to the Cypriot limitation law, contains a specific limitation period for the enforcement of an arbitration award).
Cypriot limitation law provides that actions ‘concerning a contract’ must be brought within six years from the date the cause of action was completed, actions in connection with a ‘judicial decision’ must be brought within 15 years from the date the decision became final, and all actions for which a limitation period is not specifically provided for must be brought within ten years from the date the cause of action was completed.
There is no published decision considering whether an action to enforce an award could fall within the scope of any of these limitation periods.
(Source: Cyprus – Prescription of Causes of Action Law N. 66(I)/2012, ss. 4, 7, 10; United Kingdom – Limitation Act 1980, ss. 7, 8.)
(b) If yes, what is the applicable limitation period (time limit) and when does it start running?
If Cypriot courts were to hold that the Cypriot limitation law applies to an action to enforce an award, they are likely to follow the English courts and decide that such limitation period starts running from the last moment the debtor party should have complied with the award.
(Source: Cyprus – Prescription of Causes of Action Law N. 66(I)/2012, ss. 4, 7; United Kingdom: National Ability SA v Tinna Oils & Chemicals Ltd, The Amazon Reefer [2010] 1 Lloyd’s Rep. 222, ED&F Man Sugar Ltd v Lendoudis [2007] EWHC 2268 (Comm).)
D. National courts and court proceedings
7. What authority or court has jurisdiction over recognition and enforcement of foreign awards?
At first instance, the District Court. On appeal, the Supreme Court.
(Source: DFCL 2000, s. 2; Courts of Justice Law N. 14/1960, s. 25.)
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 respondent in the jurisdiction, etc.)?
Under Cypriot procedural legislation, Cypriot courts must accept jurisdiction if the party seeking recognition/enforcement, or the party against whom recognition/enforcement is sought, resides in Cyprus. If neither party resides in Cyprus, there are conflicting first instance decisions as to whether Cypriot courts can accept jurisdiction, and as to the jurisdictional connection required (e.g. assets within the jurisdiction). The matter is pending for consideration before the Cypriot Supreme Court.
(Source: DFCL 2000, s. 2; Hepp III Luxembourg Master SARL v. Central Europe Finance (Holding) SA (Gen. App. 20/2012, Limassol District Court, Decision 24/9/2013); Cruz City 1 Mauritius Holdings v. Unitech Limited a.o. (Gen. App. 402/2014, Nicosia District Court, Decision 30/12/2015).)
9. Is the first decision granting or denying recognition and enforcement obtained through ex parte or inter partes proceedings?
Inter partes, unless the award was issued ex parte.
(Source: DFCL 2000, s. 5(1)(a).)
10.
(a) Is the first decision granting or denying recognition and enforcement subject to any form of appeal or recourse?
Yes, the decision of the District Court can be appealed to the Supreme Court.
(Source: Courts of Justice Law 14/1960, s. 25.)
(b) How many levels of appeal or recourse are available against this decision?
One. Cyprus has a two-tier court system.
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)?
Execution becomes possible when the District Court issues its decision permitting recognition/enforcement of the foreign award.
(Source: Civil Procedure Law, Cap. 6; Charging Orders Law N. 31(I)/1992, s. 2(2).)
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.)?
The application for recognition and enforcement must be supported by an affidavit setting out the material facts pertaining to recognition/enforcement. The affidavit must also attach the documents specified in Art. IV of the New York Convention, i.e. (i) the duly authenticated original award or a duly certified copy thereof, and (ii) the original arbitration agreement or a duly certified copy thereof.
(Source: DFCL 2000, s. 5; NYCL 1979, Annex, Part I, Art. IV; Intersputnik International Organisation of Space Communications v. Alrena Investments Limited (Civil Appeal 298/2013, Decision dated 4 April 2017, Supreme Court).)
(b) Is it necessary to provide the entire document or only certain parts (e.g. entire contract or only arbitration clause)?
There is no published case law on this point. Cypriot law of evidence is flexible and permits the filing in evidence of only parts of a document, but Cypriot Courts have interpreted Art. IV of the New York Convention strictly and are therefore likely to hold that the entire foreign award must be supplied, rather than just the dispositive part.
Cypriot law would treat an arbitration clause as an agreement to submit disputes to arbitration which is separate from the underlying contract. Therefore, it should, in principle, be sufficient to provide only the arbitration clause (provided the arbitration clause contains the entire arbitration agreement). Since there is no published case law, the general practice in Cyprus is to file the entire award and the entire contract.
(Source: NYCL 1979, Annex, Part I, Arts. II(1), II(2), and IV(1)(b).)
(c) Are originals or duly certified copies required?
In accordance with Art. IV of the New York Convention, originals or duly certified copies must be provided. The original award must be duly authenticated. Cypriot Courts apply these provisions strictly.
(Source: NYCL 1979, Annex, Part I, Art. IV(1), Intersputnik International Organisation of Space Communications v. Alrena Investments Limited (Civil Appeal 298/2013, Decision dated 4 April 2017, Supreme Court).)
(d) How many originals or duly certified copies are required?
One of each (award and arbitration agreement). These will be exhibited to the affidavit supporting the application for recognition/enforcement.
(Source: DFCL 2000, s. 5; NYCL 1979, Annex, Part I, Art. IV(1); Civil Procedure Rules, O. 39.)
(e) Does the authority or court keep the originals that are filed?
Yes. After conclusion of the proceedings, a party may apply for their return.
(Source: Civil Procedure Rules, O. 33, r.8, O. 39.)
13.
(a) Is it necessary to provide a translation of the documents supplied?
Yes. There are several first instance decisions which apply this requirement strictly.
(Source: NYCL 1979, Annex, Part I, Art. IV(2).)
(b) If yes, into what language?
Greek.
(Source: NYCL 1979, Annex, Part I, Art. IV(2); Official Languages of the Republic Law N. 67/1988.)
(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)?
The translations must be certified by an official or sworn translator or by a diplomatic or consular agent. The matter has not been considered by the Supreme Court, but first instance decisions suggest that translators in Cyprus or at the seat will be accepted provided that they meet the requirements set out in Art. IV(2).
(Source: NYCL 1979, Annex, Part I, Art. IV(2); Registration and Regulation of Sworn Translator Services, Law 45(I)/2019; Intersputnik International Organisation of Space Communications v. Alrena Investments Limited (Gen. App. 32/2012, Decision dated 19 January 2018, Limassol DC).)
(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)?
There is no Supreme Court decision considering this question. Since Cypriot Courts interpret Art. IV strictly, it is advisable to provide a translation of the entire award and entire arbitration agreement (and, if also submitted, a translation of the entire agreement that contains the arbitration clause/agreement).
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, pursuant to Art. VI of the New York Convention and the court’s inherent case management powers.
(Source: NYCL 1979, Annex, Part I, Art. VI; Civil Procedure Rules, O. 33, r. 6, O. 48, r. 6; DFCL 2000, s. 5(1)(f)).)
(b) On what other grounds, if any, can the authority or court stay legal proceedings for recognition and enforcement (e.g. forum non conveniens)?
There are no specific grounds provided for in Cypriot legislation permitting to stay legal proceedings for recognition and enforcement. However, a court is always entitled to stay, temporarily, any proceedings as part of its inherent case management powers, if it is in the interests of justice. There is no precedent where registration proceedings were stayed on grounds of forum non conveniens.
(Source: Civil Procedure Rules, O. 33, r. 6, O. 48, r. 6.)
(c) Is the granting of a stay of legal proceedings for recognition and enforcement conditional on the provision of security?
The provision of security is at the discretion of the court.
(Source: NYCL 1979, Annex, Part I, Art. VI; Civil Procedure Rules; O. 33, r. 6, O. 48, r. 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?
The documents filed in legal proceedings for recognition and enforcement are not part of the public record. Generally, only the parties to a court action have access to the court file. However, the court retains discretion to allow inspection of the documents upon application by any person who can show good reason. Where the information in the court file relates to a confidential arbitration, the court will protect the confidentiality of the arbitration proceedings and will refuse leave to inspect, unless there are strong grounds demonstrating that inspection should be allowed.
(Source: Civil Procedure Rules, O. 63, r. 10; Gen. App. 1019/2013, Re Case 978/2013, Limassol District Court, Decision 10.1.2014.)
(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?
The general rule is that all hearings in Cyprus are public. However, the court has discretion to hold proceedings in private, where it is in the interest of justice.
(Source: Constitution of the Republic of Cyprus, Art. 30.)
(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)?
Judgments of the Cypriot Courts are, as a general rule, publicly pronounced and published on internet databases. Irrespective of whether the proceedings were heard in public or in private, it is possible to ask the court to exercise its inherent powers and order that the published judgment does not identify specific individuals or information. Following entry into force of the General Data Protection Regulation, Cypriot courts will routinely redact certain personal data of natural persons from the published judgments.
(Source: Constitution of the Republic of Cyprus, Art. 30; Re the Application of Doros Georghiades No. 3 (2002) 1 AAD 1455; X v. Pavlou (Paul) Kythreoti (Action No. 5853/2010, Limassol District Court, Decision 15/2/2011); Supreme Court Circular on Anonymisation of Judicial Decisions, dated 19/7/2018.)
H. Other issues
16. When, if ever, can a party obtain recognition and enforcement of interim or partial foreign awards?
There is no published Cypriot case law on this issue. Cypriot courts are very likely to follow English courts and enforce an award which is final and binding, even if the award is only a partial final award. There are examples of Cypriot first instance decisions where such awards have been registered, albeit without the court explicitly considering and ruling upon this issue.
The position with interim (in the sense of interlocutory/provisional) awards is more uncertain, since such awards may not be considered final and binding. The diverse views expressed in international arbitration texts and materials have yet to arise for consideration by the Cypriot courts.
(Source: NYCL 1979, Annex, Part I, Art. V(1)(e); Born, International Commercial Arbitration, 2nd ed., 2014, §17.03 and §23.01.)
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)?
This issue has not yet been considered by the Cypriot courts. However, in principle, there is no distinction in Cypriot law between monetary and non-monetary arbitral awards.
(Source: NYCL 1979.)
18. When, if ever, can a party obtain recognition and enforcement of only part of the relief granted in foreign awards?
Cypriot law does not explicitly allow for recognition and enforcement of only part of the relief granted in foreign awards. However, in principle, there is no reason why a Cypriot Court, if it considers it appropriate and in the interests of justice, may not, in the exercise of its inherent powers, order that an award be recognised or enforced only in part.
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 Cypriot case law considering the application of Art. V(1)(e). Cypriot courts may follow the approach of the English courts on this topic and decide that they retain jurisdiction to enforce an award set aside at by the courts of the seat, subject to any issue estoppel that may arise by the decision of the court of the seat.
(Source: United Kingdom: Yukos Capital SARL v OJSC Oil Co. Rosneft [2014] EWHC 2188.)
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.)?
Court costs are relatively modest. Cyprus adheres to the pro-enforcement spirit of the New York Convention. However, parties applying for recognition and enforcement must be aware that Cypriot Courts interpret and apply the procedural requirements of Art. IV of the New York Convention very strictly.
Country Rapporteur: Marcos. G. Dracos