The Procedure of Recognition and Enforcement of International Arbitration Courts Decisions in the Republic of Kazakhstan

RusEnergyLaw JOURNAL • 2'2003/Table of Contents • Article

Many companies, which implement their activities in the Republic of Kazakhstan, provide for in contracts that disputes will be settled by international arbitration court.

All international arbitration courts decisions concerning the interests of Kazakhstan legal entities must be recognized and enforced in the Republic of Kazakhstan.

Considering that the Existing Legislation of the Republic of Kazakhstan, regulating the proceeding for recognition and enforcement of international arbitration courts decisions, has considerable gaps and it is quite intricate, companies face to certain difficulties.

The state authority, responsible for recognition and execution of decisions of international arbitration courts in the Republic of Kazakhstan

As a result of careful analysis of the existing legislation norms of the Republic of Kazakhstan and international legal acts, and studying of practice of application of this norms, we would like to inform that the following state authorities will be involved in the procedure for recognition and enforcement of international arbitration courts decisions:

The Ministry of Justice of the Republic of Kazakhstan;

Justice agencies of international countries;

The Ministry of Foreign Affairs of the Republic of Kazakhstan;

Embassies and Consular Offices of the Republic of Kazakhstan located abroad;

Embassies and Consular Offices of foreign countries in the Republic of Kazakhstan;

The Supreme Court of the Republic of Kazakhstan;

Court Administration Committee attached to the Supreme Court of the Republic of Kazakhstan (hereinafter referred to as a "Committee");

Territorial subdivisions of the Committee;

Local courts of the Republic of Kazakhstan.

The mam state authority of the Republic of Kazakhstan, which is responsible for enforcement of decisions of international arbitration courts in the Republic of Kazakhstan, is Committee. However, the procedure of preparation and submission of documents to the Committee can be presented in three following variants:

I – Variant: the documents are to be certified by the state institution authorized to confirm legal force of the documents. Then the documents are to be submitted to the Ministry of Justice of the Republic of Kazakhstan. After the consideration the documents are to be sent to the Committee, which determines and sends the documents to relevant local court at the defendant’s place of registration. This court writes out executive document and sends it back to the Committee.

II – Variant: the arbitration court sends the documents to the Ministry of Foreign Affairs of the Republic of Kazakhstan, or to Consular Office of the relevant country in the Republic of Kazakhstan, one of them sends the documents to the Committee.

The Committee sends the documents to the relevant local court according to the defendant’s place of registration, which writes out executive document and sends it back to the Committee for execution.

III – Variant: The documents are to be submitted to the Committee. The Committee verifies validity of international arbitration court decision and sends the documents to the local court according to the defendant’s place of registration. The court considers the possibility of recognition of international arbitration court decision and issue of executive document.

During the recognition and enforcement of international arbitration court decision the Committee sends the documents to the territorial subdivision of the Committee.

The documents required for the recognition and enforcement of international arbitration court decision

According to Part 1 of Article 4 of the New York Convention as of 1958 "For declaring and carrying into execution international arbitration courts decisions" (hereinafter referred to as "The New York Convention"), for recognition of legal force and carrying into enforcement of international arbitration court decision in the territory of participating country, it is necessary to provide the following documents:

1. Properly certified original decision of international arbitration court, or properly certified copy of such decision;

2. Original agreement, according to which the participants of legal relationships will be obliged to submit to arbitration court all, or any disputes, arising from, or which can arise between the participants, and the object of which can be subject of arbitration, or properly certified copy of such agreement.

Also local court, which considers statement for declaration and execution of international arbitration court decision, will be entitled to request additional documents, which, for example, verify that:

The defendant was properly notified of the ongoing consideration of the dispute in the international arbitration court, of arbiters appointment;

International arbitration court decision is valid; etc.

Document of execution of international arbitration courts decisions

You should take into consideration that the Legislation of the Republic of Kazakhstan does not clarify what document is to be issued during enforcement of international arbitration court decisions in the Republic of Kazakhstan: either Order of court or Executive sheet.

Decision of the question concerning the executive document does matter, particularly for determination of the size of the government duty to be paid when applying to the court of the Republic of Kazakhstan.

Taking into consideration contradictory character of the Legislation, we recommend to use the practice of courts of the Republic of Kazakhstan and specialists’ successful experience.

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