Termination of the Enforcement Proceedings - Chapter 35 - Arbitration Law of Czech Republic: Practice and Procedure
Alexander J. Bělohlávek, Univ. Professor, Dr.iur., Mgr., Dipl. Ing. oec/MB, Dr.h.c. Lawyer admitted and practising in Prague/CZE (Branch N.J./US), Senior Partner of the Law Offices Bělohlávek, Dept. of Law, Faculty of Economics, Ostrava, CZE, Dept. of Int. and European Law, Faculty of Law, Masaryk University, Brno, CZE (visiting), Chairman of the Commission on Arbitration ICC National Committee CZE, Arbitrator in Prague, Vienna, Kiev etc. Member of ASA, DIS, Austrian Arb. Association. The President of the WJA – the World Jurist Association, Washington D.C./USA.
35.I. SECTION 35(1) OF THE ARBACT
35.I.1. General and special grounds
Irrespective of whether the dispute is domestic or international, domestic arbitral awards, i.e. arbitral awards rendered in the Czech Republic, are exclusively enforced pursuant to domestic Czech laws, i.e. the CCP or the ExecProcC. The enforcement of domestic arbitral awards is not subject to the requirement of any special recognition, because the arbitral award itself is an enforcement title, providing it has become final and conclusive (Section 28 of the ArbAct).3 Section 35 of the ArbAct provides for another possible defense against an arbitral award; as concerns foreign arbitral awards, it is the only defense, applicable only after the creditor files a motion for enforcement. The procedure incorporated in Section 35 of the ArbAct is applicable both in the case of enforcement exclusively executed by the court in terms of Section 251 et seq. of the CCP and in the case of the procedure provided for under the Executory Procedure Code (ExecProcC), instituted by the creditor. The possibility to file a motion to terminate enforcement of the arbitral award as an enforceable title is independent of the motion to annul the arbitral award in terms of Section 31 of the ArbAct, the motion to suspend enforceability filed pursuant to Section 32(2) of the ArbAct, and the failure to file the motion to suspend. Such possibility is also independent of the potential decision on the suspension of enforceability rendered of the court’s own motion (in terms of the Amendment to the ArbAct). On the other hand, if the motion to annul the arbitral award is joined with a motion to suspend enforceability, then the suspension of enforcement of the arbitral award means that the court which ordered the enforcement of the arbitral award interrupts the enforcement of its own motion until the motion to annul the arbitral award is resolved.
The debtor, against whom the enforcement of the final and conclusive arbitral award was ordered, may file a motion to terminate the pending enforcement proceedings after the decision ordering the enforcement or approving the enforcement by the enforcement agent becomes final and conclusive. The reasons may be either general, in terms of the corresponding provisions of Section 268 of the CCP, or special, applicable solely to the enforcement of an arbitral award. It is irrelevant whether the defects of the proceedings were complained of during the arbitration or not.