Enforcement Of Foreign Judgments In Iran

• Published date: 13 September 2023
• Subject Matter: International Law, Litigation, Mediation & Arbitration, International Courts & Tribunals, Trials & Appeals & Compensation, Civil Law
• Law Firm: Asgari & Associates
• Author: Ms Anahita Asgari Fard

In today's interconnected global landscape, cross-border interactions have become integral to international trade and commerce. As a result, legal disputes involving foreign entities are increasingly common, necessitating the recognition and enforcement of foreign judgments in various jurisdictions. With its significant economic potential, Iran has become a destination for international business transactions and investments, leading to an upsurge in legal matters involving foreign parties. This article comprehensively overviews how foreign court judgments are recognized and executed in the Iranian legal system by analyzing relevant laws, regulations, and judicial practices.

1- Enforcement and recognition meaning:

In all legal systems, judgments issued by foreign courts cannot be recognized and enforced in the territory of another country. In other words, decisions issued by the domestic courts of any country can be recognized and executed in the territory of the same unless the foreign judgments in the domestic system of that country, i.e., The place of execution of the decision, be transformed, which means that the judiciary should recognize the foreign judgment in the domestic system of the country where it is enforced. This resolution has a mechanism under the title of recognition and enforcement of decisions of foreign courts. The rule mentioned above is also stated in Article 972 of the Civil Code of Iran, which says: "Judgments issued by foreign courts as well as valid official documents drawn up abroad cannot be enforced in Iran unless, according to the laws of Iran, the court order it to be executed.

Recognition means validating and recognizing a vote, and enforcement means implementing the same. Therefore, a foreign verdict is not enforceable until recognized and enforced. Recognition does not necessarily lead to enforcement; it may or may not lead to implementation.

3- the procedure

The applicant should apply to enforce judgments and decisions to the competent Court of the First Instance. The competent Court will examine the applicant's request in an extraordinary meeting. The Court examines two issues. First, it will check the formal conditions, and after meeting the legal requirements, it will check substantive conditions and then make a decision. Upon the Court's acceptance, the Court will issue an executive order. The Court may dismiss issuing the enforcement order. Such a decision can be appealed within ten days by the applicant in the...