Iran has a comprehensive legal framework for the enforcement of foreign judgments and arbitration awards. The process of enforcing foreign judgments and arbitration awards is governed by the Civil Procedure Code (CPC) of Iran, the Law On Enforcement of Civil Judgments, the New York Convention on the Recognition and Enforcement of Foreign Arbitration Awards, and other regulations. If you are involved in the process of enforcing a foreign judgment or arbitration award in Iran, you can contact MJK Law Firm to assist you in the process.
Recognition and Enforcement of Foreign Arbitration Awards
Iran is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitration Awards. As a result, foreign arbitration awards issued in other countries that are signatories to the Convention can be recognized and enforced in Iran. The recognition and enforcement of these awards may be done through the Iranian courts.
The process of recognizing and enforcing foreign arbitration awards in Iran begins with filing a petition with the competent court. The petition must contain all the necessary documents, including the arbitration award, the arbitration agreement, and evidence of service of the award on the losing party.
Once the petition is filed, the court will review the documents and consider any objections raised by the opposing party. If there are no objections, the court will issue an order recognizing and enforcing the award. Once the order is obtained, the winning party can enforce the award in Iran.
Recognition and Enforcement of Foreign Judgments
Foreign judgments can also be recognized and enforced in Iran. Similar to the process for recognizing and enforcing foreign arbitration awards, the process for recognizing and enforcing foreign judgments in Iran begins with filing a petition with the competent court.
The petition must contain all the necessary documents, including the judgment, evidence of service of the judgment on the losing party, and evidence of the finality of the judgment. Once the petition is filed, the court will review the documents and any objections raised by the opposing party.
In discussing the rulings of foreign courts, two important issues in private international law can be raised:
First: Recognition of a foreign judgment, which means: “The court of a country is asked to consider the judgment issued by a foreign authority as valid.” Therefore, the purpose of recognizing a foreign judgment is not to directly implement any judgment issued by a foreign authority, but to accept and consider that judgment valid.
Secondly: The enforcement of a foreign judgment means the enforcement of a foreign judgment: the court of a country is asked to treat the judgment issued by a foreign authority as the judgments issued by domestic courts and issue an order for its enforcement.
It should be noted that the enforcement stage of a foreign judgment takes place after the recognition of that judgment, and the court of a country must first recognize any judgment it enforces. However, recognition is not associated with its implementation.
If there are no objections, the court will issue an order recognizing and enforcing the judgment. Once the order is obtained, the winning party can enforce the judgment in Iran.
Challenges to Enforcement of foreign judgments and arbitration awards in Iran
Enforcement of foreign judgments and arbitration awards in Iran is not always straightforward. There are several challenges that parties may face when seeking to enforce a foreign judgment or award in Iran.
One challenge is that the Iranian courts have discretion in deciding whether to recognize and enforce foreign judgments and awards. The courts may refuse recognition and enforcement if they find that the judgment or award is contrary to public policy or violates Iranian law. In addition to the general principles mentioned above, according to the law on enforcement of civil judgments, civil judgments issued by foreign courts are enforceable in Iran if they meet the following conditions unless otherwise stipulated in the law.
Special rules on Enforcement of Foreign Judgments and Arbitration Awards in Iran
1) The judgment was issued from a country that, according to its laws or treaties or contracts, the judgments issued by the courts of Iran are enforceable in that country, or it makes a reciprocal transaction regarding the execution of the judgments.
2) The provisions of the verdict do not contradict the laws related to public order or good morals.
3) Enforcement of the ruling against the international covenants that the government of Iran has signed or against specific laws.
4) The verdict is final and binding in the country where it was issued and has not been invalidated due to legal reasons.
5) Iranian courts have not issued a ruling contradicting the foreign court.
6) According to the laws of Iran, the jurisdiction of the dispute is not reserved for the courts of Iran.
7) The verdict is not about the immovable property located in Iran and the rights belonging to it.
8) The order to enforce the judgment has been issued by the competent authorities of the country issuing the judgement.
Another challenge is that the process of enforcing foreign judgments and awards in Iran may be time-consuming. The courts may require additional documentation or evidence, which can prolong the process.
Contact MJK Law Firm for Assistance
If you need assistance with enforcing a foreign judgment or arbitration award in Iran, it is important to seek the advice of experienced legal professionals. MJK Law Firm is a leading law firm in Iran that specializes in international commercial law, including the recognition and enforcement of foreign judgments and arbitration awards.
The team at MJK Law Firm has extensive experience in representing clients in international arbitration and litigation matters. They can assist you with all aspects of enforcing a foreign judgment or arbitration award in Iran, from filing the initial petition to obtaining the final order.
To learn more about how MJK Law Firm can help you with your enforcement matter, contact us directly for a consultation.