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Russian Federation High Arbitration Court rules on the courts' competence to handle applications on the recognition of arbitral awards
Practical Law Legal Update 3-502-6705 (Approx. 2 pages)
Russian Federation High Arbitration Court rules on the courts' competence to handle applications on the recognition of arbitral awards
| Published on 30 Jun 2010 • International, Russian Federation |
Maxim Kulkov (Partner), Goltsblat BLP
On 7 June 2010, the Russian Federation High Arbitration Court rejected a request to grant leave to appeal a decision of the lower courts declining jurisdiction to consider the recognition of an arbitral award.
The claimant, a Russian company, had obtained an award issued by the International Commercial Arbitration Court under the Russian Federation Chamber of Commerce against the defendant, a Brazilian company. The claimant filed an application for recognition of the award with the Arbitration Court of Moscow. However, the court declined jurisdiction because the defendant was not located, and did not have any assets, in Moscow.
The claimant argued that the court should allow recognition in any case, by virtue of article 38(8) of the Russian Federation's Arbitrazh Procedural Code (APC) which allows the courts to proceed with such applications which are brought at the location of the arbitral tribunal which issued the award.
The High Court decided that article 38(8) only applies in cases where an application to recognise an award is brought as a counter-action in the case of a challenge to the award. If the award has not been challenged, the application on recognition should be filed according to article 236(3) of APC, that is at the location of the defendant or its assets.