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Cyprus does not have a formal policy towards the recognition and
enforcement of foreign judgments. The question whether a foreign
judgment can be enforced in Cyprus, depends solely by the criteria,
provided in the relevant legislation -(if applicable to the foreign
judgment in question)- or by the principles of Common Law, if the
foreign judgment, lies outside the ambit of the legislation.
A foreign judgment, has no direct operation in Cyprus, but it
may be enforced, by action or counterclaim at Common Law, or under
statute, or it may be recognized as a defence to an action, or as
conclusive of an issue, in an action.
In general, the Cyprus Court's attitude is to assist in the
enforcement of foreign judgments, provided the following
requirements are met:
The foreign judgment, has been issued by a court, which has
jurisdiction, in accordance with the Cypriot rules in the conflict
of laws;
The enforcement of foreign judgment will not violate Cypriot
public policy;
The foreign judgment has been made on merits, and not according
to procedure;
The foreign judgment has not been obtained by fraud; and
The proceedings, which led to the issue of the foreign
judgment, were not contrary to natural justice.
ENFORCEMENT UNDER STATUTE
The procedure of recognition, registration and enforcement of
foreign judgments in Cyprus under statute, is regulated by the Law
121 (1)/2000.
EXISTING LEGISLATION REGULATING RECOGNITION AND
ENFORCEMENT OF FOREING JUDGMENTS
A foreign judgment can be recognized and enforced in Cyprus,
provided that same meets the requirements, provided in the
legislation, stated herein below:
Pursuant to the provisions of the EU Regulation 44/2001, (Court
judgments issued by Courts of Member States of EU, except
Denmark).
Pursuant to the provisions of the Bilateral Treaty between
Cyprus and Russian Federation.
Pursuant to the provisions of the Bilateral Treaty between
Cyprus and Ukraine.
Pursuant to the provisions of the Bilateral Treaty between
Cyprus and the Peoples Republic of China.
Pursuant to the provisions of the Bilateral Treaty between
Cyprus and the Syrian Arabic Republic.
Pursuant to the provisions of the Bilateral Treaty between
Cyprus and the Socialist Federal Republic of Yugoslavia (only
Serbia and Montenegro have ratified the Treaty, since the
dissolution of Yugoslavia).
ENFORCEMENT AT COMMON LAW
A judgment creditor seeking to enforce a foreign judgment in
Cyprus at Common Law, must bring an action on the foreign
judgment.
The action on the foreign judgment, commences with a specially
endorsed writ of summons containing the plaintiff's statement
of claim.
The statement of claim will set out details of the foreign
judgment sought to be enforced and will usually include a plea,
that the foreign court, which issued the judgment, has jurisdiction
over the defendant.
If the foreign judgment is capable of registration under
statute, it cannot be enforced by a Common Law action on the
judgment.
The Plaintiff of an action to enforce a foreign judgment at
Common Law, may apply for a summary judgment as soon as the
Defendant files his appearance on the ground that the latter does
not have any defence.
INTERIM RELIEF
In the context of proceedings for recognition, registration and
enforcement of foreign judgments either under statute, or at Common
Law, the judgment creditor may apply for the following interim
relief:
Freezing orders, blocking assets held by the judgment
debtor;
Chambra injunctions, blocking assets beneficially owned
by judgment debtor, but held into the name of third parties;
Discovery or Norwich Pharmakal orders, ordering third
parties (Banks, Service providers etc) to disclose information and
documents in order to assist the Claimant, to prove and plead his
case, to trace assets, to identify other wrongdoers etc;
Gagging orders, blocking a third party (i.e. Bank,
Service provider) not to alert the defendant, about the
commencement of the legal proceedings by the Claimant;
Appointment of an interim receiver to assist in the
preservation of the assets blocked by an injunction; and
Appointment of a receiver by way of equitable execution,
in order to assist in the execution of the judgment, against the
assets, which are beneficially owned by the judgment debtor.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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