Exceptions to the Enforcement of Foreign Arbitration Awards in the Iranian Legal System

Abstract

The purpose of this article is to examine the exceptions to the enforcement of foreign arbitration awards in the Iranian legal system. This article is descriptive-analytical in nature. The materials and data are qualitative, collected through note-taking methods. The findings indicate that the most significant exceptions to the enforcement of foreign arbitration awards in the Iranian legal system include the conflict of the award with public order, the invalidation of the arbitration award if it contradicts substantive law, the legal validity of the arbitration agreement prior to the approval of the Council of Ministers or the ratification by the Parliament, and the discrepancy between arbitration awards and Article 139 of the Constitution. Article 139 of the Constitution thoroughly identifies the enforcement of arbitration awards concerning state property, and Article 457 of the Civil Procedure Code subjects arbitration over public and state-owned property to the approval of the Council of Ministers and the Islamic Consultative Assembly, thereby imposing certain restrictions on these properties. The conclusion is that the protection of state sovereignty concerning the arbitration of public and state-owned property is evident in judicial practice. The predominant judicial approach is that the restrictions outlined in Article 139 apply to state-owned properties, municipalities, and their affiliated companies. This research aims to examine the exceptions to the principle of equality in the enforcement of foreign arbitration awards in the Iranian legal system and to define its boundaries.