Recognition and Enforcement of an Arbitral Award
A party may apply to the court at the location of the debtor’s property for the recognition and enforcement of an arbitral award only if the location of the legal entity’s governing body is unknown.
By a resolution of the Judicial Panel for Civil Cases of the Supreme Court dated 10 June 2025, the ruling of the Specialized Interdistrict Economic Court of Atyrau Region dated 4 November 2024 and the ruling of the Judicial Panel for Civil Cases of the Atyrau Regional Court dated 11 February 2025, which had granted the application of JSC “Z” (hereinafter – the Company) for the recognition and enforcement of the arbitral award of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation dated 11 August 2021, were overturned.
In concluding that the application should be granted, the local courts proceeded from the fact that the debtor had a branch located at the following address: Atyrau, 1…..A Makhambet Otemisuly Street. When filing the application, the Company had complied with the requirements of the procedural legislation of the Republic of Kazakhstan and the New York Convention.
The Judicial Panel of the Supreme Court justified the reversal of the challenged judicial acts and the issuance of a new decision dismissing the application on the grounds that the conclusions of the local courts were unlawful, since, pursuant to paragraph 1 of Article 39 of the Civil Code, the location of a legal entity is deemed to be the location of its permanently operating governing body.
JSC “T” (T) (hereinafter – JSC “T”), a party to the arbitration proceedings, is a legal entity registered in accordance with the legislation of the Republic of Türkiye. The permanently operating governing body of the legal entity is located in Istanbul, Türkiye.
Pursuant to Part One of Article 503 of the Civil Procedure Code, if the place of residence or location of the debtor is unknown, the party to the judicial or arbitration proceedings in whose favor the relevant acts were rendered is entitled to apply for their compulsory enforcement to the court at the location of the debtor’s property.
At the same time, the Company was aware of the location of JSC “T”; therefore, it was required to apply to the competent court of Türkiye at the location of the debtor legal entity.
In view of the foregoing, the application should have been left without consideration and the documents returned, since an applicant may apply to the court at the location of the debtor’s property only where the location of the governing body of the legal entity is unknown.
On similar grounds, by a ruling of the Specialized Interdistrict Economic Court of Atyrau Region dated 3 December 2024, which was upheld by the ruling of the Judicial Panel for Civil Cases of the Atyrau Regional Court dated 4 March 2025, the application of JSC “Z” for restoration of the time limit for filing an application for the issuance of a writ of execution, as well as for the recognition and enforcement of the arbitral award of the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation dated 20 May 2019, was returned.
In returning the application, the court rightly indicated that an applicant may apply to the court at the location of the debtor’s property only if the location of the governing body of the legal entity is unknown. In this case, the location of the debtor was known to the applicant.
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