Recognition and enforcement of foreign arbitral awards in the economic litigation of the Republic of Uzbekistan

Introduction

Arbitration stands out as a distinctive and effective method for resolving disputes, with its decisions requiring the enforcement by national courts. The international community has fostered strong cooperation through the conclusion of numerous international treaties, including the influential United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards signed in New York from 1958. Uzbekistan, like many other nations, proudly holds membership in this convention. The State's domestic laws have been aligned with the principles outlined in the New York Convention, and it is noteworthy that national courts frequently invoke its provisions when acknowledging and executing arbitration decisions within Uzbekistan’s jurisdiction.

Economic Litigation

The recognition and enforcement of judgments of foreign arbitral awards in the economic litigation of Uzbekistan is regulated by the Economic Procedural Code of the Republic of Uzbekistan of 2018 (hereinafter ‘the Code’).

According to Article 248 of this Code, the economic courts in Uzbekistan recognize and enforce foreign arbitral awards related to economic disputes, where it is specified in international treaties and Uzbekistan's legislation. The economic court handles requests for recognition and enforcement made by the party benefiting from a foreign judgment or award. Such requests must be submitted within three years from the date the judgment or award becomes legally binding, unless stated differently in an international treaty of Uzbekistan. The courts like the Court of the Republic of Karakalpakstan, regional and Tashkent city courts on the debtor's place of residence will have a jurisdiction to review such applications.

Pursuant to Article 253 of the same Code, Applicants with such requests must Article attach the following documents to statement for recognition and enforcement of a foreign arbitral award:

• the foreign arbitral award certified by a competent body of the foreign state or the Republic of Uzbekistan;
• an original agreement on arbitration proceedings or a copy thereof certified by a competent body of the foreign state or the Republic of Uzbekistan;
• a document about the enforcement of the award in part if it has been enforced earlier in the territory of the relevant foreign state;
• a document confirming that the party, against which the award has been made and which has not participated in the proceedings, has been in due time properly informed of the time and place of the consideration of the case;
• a power of attorney or another document, confirming the powers of the representative;
• a document confirming the direction to the debtor of a copy of the statement on recognition and enforcement of the foreign arbitral award;
• documents confirming the payment of the state duty and postage in the prescribed order and amount, unless otherwise provided by an international treaty of the Republic of Uzbekistan;
• a properly certified translation of the documents specified in items 1 – 5 of this article into the state language, unless otherwise provided by an international treaty of the Republic of Uzbekistan.

However, there are some circumstances when the Courts can reject such applications. The article 256 of the present Code provides that such refusal may take place upon a statement of the party, against which the foreign arbitral award has been adapted. This party, however, should provide the following evidence:

• the parties to the arbitration agreement were in any way legally incapable under the law applicable to them or the arbitration agreement is invalid under the law to which the parties have subordinated this agreement, and in the absence of such indication – under the law of the country where the award has been made;
• the party against which the award has been made was not properly notified of the appointment of the arbitrator or of the arbitration proceedings, or due to other reasons could not provide its explanations;
• the arbitration award has been made on a dispute which is not provided for or does not fall under the terms of the arbitration agreement or arbitration clause in the agreement, or contains resolutions on the issues that extend beyond the scope of the arbitration agreement or the arbitration clause in the agreement, except for cases where resolutions on the issues covered by an arbitration agreement or a clause therein may be separated from those not covered by such an agreement or a clause;
• the composition of the arbitration body or the arbitration process has not complied with the agreement of the parties or, in the absence of such an agreement, with the law of the country where the arbitration took place;
• the award has not become final for the parties or its execution has been canceled or suspended by the competent authority of the state where it has been issued or the country whose law is being applied;
• the dispute was resolved by an incompetent foreign arbitration.
• the object of the dispute cannot be a subject of arbitration under the legislation of the Republic of Uzbekistan;
• recognition and enforcement of this award would be contrary to or would threaten the public order of the Republic of Uzbekistan;
• the statute of limitations has expired for enforcing a foreign arbitration award.

The court decisions regarding the recognition and enforcement of a foreign arbitral award can be challenged (protested) according to the procedure and timeframe specified in this Code. The enforcement of a foreign arbitral award in the Republic of Uzbekistan is carried out in accordance with the established procedure under the legislation of the State. This process mainly requires obtaining a writ of execution from the court that issued the ruling on recognizing and enforcing said judgment or award.