Enforcement of Foreign Judgments and Arbitral Awards
Our Associate, Fatima Alsayed delves into the enforcement of foreign judgments and arbitral awards in Bahrain.
Fatima Alsayed ([email protected]) – Associate
Enforcement of foreign judgments and arbitral awards is a critical aspect of international law. As global commerce and cross-border interactions increase, so does the necessity for mechanisms ensuring that judgments and awards rendered in one jurisdiction are respected and upheld in others. The Kingdom of Bahrain is a signatory to several bilateral and multilateral recognition treaties recognizing the enforcement of foreign judgments such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958, the Hague Convention for the Pacific Settlement for International Disputes 1907, The Gulf Cooperation Council Convention for the Execution of Judgments, Delegations and Judicial Notifications 1995, and various other treaties. In this article, we will delve into the enforcement of foreign judgments and arbitral awards in the Kingdom of Bahrain.
Enforcement of Foreign Judgments
Enforcing foreign judgments in the Kingdom of Bahrain is not a complex process, provided that the party has access to the original documents and can have it legalised or apostilled. The courts in the Kingdom of Bahrain will enforce a foreign judgment without requiring a prior recognition proceeding if the judgment originates from a country that is signatory to the various reciprocal recognition treaties. The law that regulates foreign judgments in the jurisdiction is Decree-Law No. 22/2021 Promulgating the Execution Law in Civil and Commercial Matters (Execution Law) and under Article 16 of such law provides that when a reciprocal recognition is not established via a treaty between the Kingdom of Bahrain and the foreign country, the foreign judgments may be recognized following an application to the High Civil Court and disclosing the payment of the prescribed fees. In order to enforce the judgment, the court must assure that:
- They are non-competent to hear the dispute in which the case has been issued on and that the foreign courts that passed such judgments are competent in accordance with the international rules of jurisdiction prescribed in the laws thereof;
- The litigants in the case were summoned and properly represented;
- The judgment or order is final; and
- The judgment issued in the foreign country does not conflict with a judgment or order previously passed by the courts of the Kingdom and does not breach its public order nor the morality.
There are no specific provisions under the Execution Law regarding the limitation period for enforcing such judgments however under the Bahraini laws, all civil claims are subject to the statute of limitations, which prescribed a general limitation period of fifteen (15) years unless otherwise provided. Commercial claims will be barred after ten (10) years from the date of due performance of the commercial obligation.
Enforcement of Arbitral Awards
Article 3 of the Execution Law provides that Arbitral Awards may be ordered to be enforced by submitting an application to the clerk’s office of the High Court after paying the prescribed fees and enclosing the original award (or a copy) and a copy of the arbitration agreement. If the award is written in a language other than Arabic, a translation must be supplemented.
The Arbitral Award shall be enforceable by an order issued by the president of the High Court, after reviewing the judgment and the arbitration agreement and after ascertaining that no impediment prevents its enforcement.
Concluding Remarks
Providing a unified regulation under several jurisdictions is a very important mechanism. This mechanism not only facilitates smoother cross-border transactions but also reinforces Bahrain’s role as a stable and attractive destination for global business. By upholding and implementing foreign decisions, Bahrain aligns with global standards, enhancing its reputation for fairness and legal integrity.
For more information, please contact us on [email protected].