Feasibility of Enforcing Annulled International Commercial Arbitration Awards; A Study of English Law with Consideration of Iranian Law

Miri, Seyed Masoud; Savrai, Parviz

doi:10.22034/law.2025.2055172.1625

Feasibility of Enforcing Annulled International Commercial Arbitration Awards; A Study of English Law with Consideration of Iranian Law

Document Type : scientific research paper

Authors

Seyed Masoud Miri ¹

parviz savrai ²

¹ Ph.D candidate, private law, law department, shahid beheshti university, tehran, iran

² faculty member of private law department, shahid beheshti university, tehran, iran

10.22034/law.2025.2055172.1625

Abstract

International commercial arbitration, as one of the primary methods for resolving cross-border commercial disputes, plays a significant role in the development of international trade relations. However, the enforcement of arbitral awards that have been issued in one country and subsequently annulled, but for whose enforcement an application is made in another country, is considered a fundamental challenge in the international arbitration system. This article examines the feasibility of enforcing such awards in the legal systems of Iran and England, analyzing their differences and similarities. In England, a more flexible approach has been adopted towards the enforcement of annulled arbitral awards. English courts, considering the principles governing international arbitration and the 1958 New York Convention, have the capacity, in certain circumstances, to deem arbitral awards annulled in the country of origin as still enforceable. In contrast, the Iranian legal system considers the annulment of an award in the country of origin as one of the primary obstacles to its enforcement within the country. Iranian courts, based on legal doctrine, tend to regard arbitral awards annulled in the country of issuance as unenforceable, citing the concept of public policy and domestic legal principles. On the other hand, they also deem the enforcement of these awards possible. This research has been conducted using a descriptive-analytical method, comparing the two legal systems of Iran while considering their commonalities, differences, strengths, and weaknesses. Furthermore, the research methodology concerning judicial decisions has been field-based, involving the collection of awards from courts. The results of this study indicate that adopting an approach similar to England’s in Iran, including a meticulous examination of the reasons for award annulment and limiting judicial interventions, could facilitate the enforcement of arbitral awards and enhance the credibility of the country’s arbitration system. This could contribute to greater convergence between Iran and international practices and attract foreign investment.

Keywords

International Arbitration

Enforcing Annulled Award

Enforcement of International Commercial Arbitration Awards

New York Convention

Subjects

Arbitration rights

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