IPL

Assoc. Prof. Dr. Natalija Shikova

RECOGNITION AND ENFORCEMENT of FOREIGN
ARBITRATION DECISIONS (AWARDS)
 The final decision of the international trade arbitration
has the same legal effect as court final decision

 If another proceedings starts before the new arbitration

or before the court – the court or arbitration will
rejected it as – RES JUDICATA
 There is difference between recognition and execution
of the court decisions (verdicts). For some of them when
it comes to the foreign judgments the recognition is only
needed (marriage, divorce…)

 When it comes to the arbitral awards recognition and

execution are happening in the same time

 The laws and the international conventions predict the

same conditions for recognition and execution of the
arbitral awards
 Recognition and enforcement of the arbitration awards
is done on 3 levels:

- On the levels of the parties in the dispute – that they

need voluntary to accept and enforce the decision
- On the level of the association (chamber) which the
party that lost the dispute is a member
- On the level of the state – according to laws;
international agreements; reciprocity
 Voluntary by the parties: to maintain business
relationship and keep good reputation
 By the influence of the association where the party is a
member- the associations have many measures: black
list; blocking a business relationship; excluding from a
membership; public shame…
 By the court –according the rules of IPL. The court can
deny an execution if: it is not a subject that can be
solved in front of arbitration; there is exclusive
jurisdiction of the court; it is against the constitution,
public order; there is no reciprocity…)
 The party that request recognition and execution
submits the request to the court where the organization
to which the awards should be executed has a seat.
 The party submits the award as well the arbitration
agreement, notarized and officially translated on the
language of the court
 Each of the country has own conditions (in Western
Balkans almost the same) that are set in the law (in most
of the cases in IPL act) on a negative way:
Ex: the arbitral award will be denied recognition and
execution if…
 The Court considers:
- The material, substantive, conditions – if it is not against

the domestic order

Formal conditions:
1. Conditions connected with the arbitration and its
competence
2. Condition in regards the procedure (right to defense;
minimum process guarantees, written agreement..)
3. Conditions in regards the decision – (to be final and
executive according the law under is created)
4. Reciprocity (diplomatic or factual reciprocity)
 International agreements:

 Bustamante Code 1928

 European Convention on International Commercial
Arbitration 1961
https://treaties.un.org/Pages/ViewDetails.aspx?
src=TREATY&mtdsg_no=XXII-2&chapter=22&clang=_en
 Convention on the execution of foreign arbitral awards,
Geneva Convention 1927;
 Convention on the Recognition and Enforcement of
Foreign Arbitral Awards (New York, 1958)
 Thank you!