Recognition and enforcement of foreign arbitral awards in Uzbekistan

As an opening remark it should be highlighted that Uzbek courts follow consistent and unanimous practice established by the Supreme Court, and it is a rarely-seen situation where a court “enters” into merits or refuses enforcement application based on public policy grounds.

I.  LEGAL FRAMEWORK

The procedure for recognition and enforcement of foreign arbitral awards is governed by the following:

-       New York Convention

-       Code on Economic Procedure

-       Law on International Commercial Arbitration

-       Resolution of Plenum of the Supreme Court No. 27 dated November 20, 2023 “On some issues in the application of legislative acts while considering the cases by economic courts in the presence of foreign nationals”         

To prevent misunderstandings, the legislature defines the term of “foreign arbitration” in the article 248 of the Code on Economic Procedure. On the purposes of that code, foreign arbitration refers to a non-public organization, temporarily or permanently established, to resolve the dispute between the parties. Plenum of the Supreme Court further interpreted this explanation and added ad hoc arbitration.

II.  ENFORCEMENT APPLICATION

At the first step, a party that award is rendered in favor of, submits a petition on recognition and enforcement of foreign arbitral award to the regional economic court situated in the place where debtor resides or incorporated. The petition is signed by petitioner or its representative. For enforcement of a foreign award, there is no need for initiating separate proceedings – for recognition and subsequent execution.

A petition on recognition and enforcement of foreign arbitral award can be submitted, unless otherwise provided in international agreements, within 3 years since award took effect.

The following documents should be supplemented to the petition:

• an award or a certified copy of the award by competent authority of Uzbekistan or relevant foreign country

• an original arbitration agreement or a certified copy of the agreement by competent authority of Uzbekistan or relevant foreign country

• a document on partial enforcement of the award if it is enforced in the territory of foreign country

• a document proving that the party against whom the award is invoked and was absent during the arbitral proceedings is notified in due order and time about the time of proceedings and place

• power of attorney or other document confirming authority of representative

• a document confirming delivery of a copy of petition to debtor

• unless otherwise provided in international agreements, a document confirming the payment of state duty and postal costs

• unless otherwise provided in international agreements, certified and translated copies of documents indicated in points 1 – 5.

As of today, the amount of state duty for a petition on recognition and enforcement of foreign arbitral award is two Basic Calculation Unit (approx. 54 USD) and postal costs is 10% of Basic Calculation Unit (approx. 2,8 USD).

The petition is reviewed by a competent court within 6 months. In considering the application, a court is not entitled to examine a case on the merits.

III.  GROUNDS FOR REFUSAL

The grounds for refusal of recognition and enforcement of foreign arbitral awards under Uzbek law are almost identical with Article V of NYC except two cases. In particular, the petition is refused when a party presents a proof confirming the settlement of dispute by incompetent foreign arbitration court and limitation period for mandatory enforcement of foreign arbitral award is passed.

In the course of reviewing a petition, court issues a procedural document called “order”. Execution actions are carried out based on an enforcement order issued by the court that reviewed a petition.

If you need any advice or assistance or have questions with regard to recognition and enforcement of foreign arbitral awards in Uzbekistan, we would be happy to assist you. Our support in this field is not only limited to enforcement actions but also jurisdictional challenges and annulment proceedings in Uzbek courts.