The area of recognition & enforcement of foreign judgments in Cyprus is a rather complex one.

This is because depending on the place of issuance of the judgment, different rules apply. In addition, these rules are often prescribed by international treaties and conventions. Cyprus courts will perceive such rules as imperatives and will not accept any deviations.

It is thus prudent, before proceeding with recognition & enforcement proceedings to obtain a thorough, qualified and knowledgeable legal advice.

Our partner Ioannis Economou has an excellent record in multi-jurisdictional proceedings and has successfully represented numerous individuals and organisations before the competent Cyprus courts.

In this publication we briefly explain the recognition & enforcement proceedings in respect to judgments issued in any member state of the European Union, in the United Kingdom and its dominions, in the Russian Federation, as well as in any other country with which Cyprus does not have a bilateral Treaty governing the matter of recognition & enforcement.

European Union

Regulation (EU) no. 1215/2012

The recognition & enforcement of judgments between European Member States is governed by the provisions of Regulation (EU) no. 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (“Regulation”).

The Regulation introduced unified rules in order to achieve the objective of free circulation of judgments across the European Union.

Notably, a judgment given in a Member State is now enforceable in all other Member States without any declaration of enforceability being required.

Prerequisites for recognition & enforcement

An applicant requesting the enforcement of a judgment issued in another Member State shall provide the competent enforcement authority with a copy of the judgment satisfying the conditions necessary to establish its authenticity as well as with the certificate issued pursuant to article 53 of the Regulation.

If the judgment which was issued in another Member State concerns a provisional measure, the applicant shall also provide the competent enforcement authority with proof of service (if the measure was ordered without the defendant being summoned to appear).

Grounds for refusal

The recognition of a judgment shall be refused if any of the following grounds applies:

1. The recognition is manifestly contrary to public policy of the Member State addressed
2. Where the judgment was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him to arrange for his/her defence, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for him to do so
3. If the judgment is irreconcilable with a judgment given between the same parties in the Member State addressed
4. If the judgment is irreconcilable with an earlier judgment given in another Member State or in a third State involving the same cause of action and between the same parties, provided that the earlier judgment fulfills the conditions necessary for its recognition in the Member State addressed

Note 1: The procedure for refusal of enforcement shall in so far as it is not covered by the Regulation be governed by the law of the Member State addressed.

Note 2: Under no circumstances may a judgment given in a Member State be reviewed as to its substance.

United Kingdom

Foreign Judgments (Reciprocal Enforcement)

On 4th May 2021 the European Commission rejected United Kingdom’s application to accede to the 2007 Convention on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (“Lugano Convention”).

The Lugano Convention is a “double convention” regulating both international jurisdiction and the recognition and enforcement of foreign judgments in civil and commercial matters. This Convention applied to the United Kingdom of Great Britain and Northern Ireland until 31 January 2020 via its EU membership.

If the European Commission’s decision is adopted by the European Council and Parliament the legal framework regulating the recognition & enforcement of UK judgments in Cyprus will revert to the provisions of the Foreign Judgments (Reciprocal Enforcement) (“Cap 10”).

Cap 10 was modeled on the corresponding English legislation of 1933 (Foreign Judgments (Reciprocal Enforcement) Act 1993 and it currently only applies in respect to judgments obtained in the Courts of the United Kingdom and of its dominions.

Prerequisites for recognition & enforcement

Under Cap 10, a judgment is susceptible to recognition & enforcement if the following cumulative criteria are met:

1. The Ministry of Councils decided to extent the applicability of this Law to that foreign country
2. The judgment was issued by a superior court
3. The judgment is final and conclusive. A judgment is deemed final and conclusive notwithstanding that an appeal may be pending against it
4. There is a payable thereunder a sum of money, not being a sum payable in respect of taxes or other charges of a like nature or in respect of a fine or other penalty
5. The judgment was given after the coming into operation of the order of the Ministry of Councils
6. The judgment is enforceable in the country of origin

Grounds for setting aside the registration

The registration of the judgment shall be set aside on any of the following grounds:

1. The judgment was registered in contravention of Cap 10
2. The courts of the country of origin had no jurisdiction in the circumstances of the case
3. The judgment debtor, being the defendant in the proceedings in the original court did not (notwithstanding that process may have been duly served on him/her in accordance with the law of the country of the original court) receive notice of those proceedings in sufficient time to enable him to defend the proceedings and did not appear
4. The judgment was obtained by fraud
5. The enforcement of the judgment would be contrary to the public policy in the country of the registering court
6. The rights under the judgment are not vested in the person by whom the application for registration was made

The judgment may also be set aside if the registering court is satisfied that the matter in dispute in the proceedings in the original court had previously to the date of the judgment in the original court been the subject of a final and conclusive judgment by a court having jurisdiction in the matter.

Note: If, on an application to set aside the registration of a judgment, the applicant satisfies the registering court either that an appeal is pending, or that he/she is entitled and intends to appeal the judgment, the court may if it thinks fit to set aside the registration. If the registration of a judgment is set aside on that ground, the setting aside of the registration shall not prejudice a further application to register the judgment.

Russian Federation

Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal matters

In connection with the Russian Federation, the recognition & enforcement procedure is foreseen and governed by the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal matters (“Treaty”).

Prerequisites for recognition & enforcement

As per the provisions of the Treaty, judgments of the authorities of either contracting party shall be recognized and enforced in the territory of the other contracting party if the following cumulative requirements are met:

1. The judgment is final and enforceable under the law of the contracting party in whose territory it was given
2. The party who failed to appear and take part in the proceedings and against whom the judgment was given was duly notified and in sufficient time
3. The case does not fall within the exclusive competence of an authority of the contracting party in whose territory the judgment is to be recognized and enforced
4. No judgment, which became final, has been earlier rendered in the same subject-matter between then same parties in the territory of the contracting party where the judgment is to be recognized or enforced
5. Proceedings between the same parties on the same subject-matter are not pending before a judicial authority of the requested contracting party and those proceedings were the first to be instituted

Grounds for Refusal

A judgment debtor may object to the enforcement of a judgment before the competent court of the contracting party in whose territory the judgment is sought to be enforced upon grounds which are admissible under the law of the contracting party whose authority rendered the judgment.

Note: The general rule is that the application for the enforcement shall be submitted to the judicial authority at the place where the judgment was given that will then transmit the application to the competent court of the other contracting party. This rule is subject to certain exceptions.

States with which there is not a bilateral treaty regulating recognition & enforcement proceedings

Common Law Principles

In many instances there will not be a bilateral treaty between Cyprus and the country of origin of the judgment. Such is the case with judgments obtained in the United States, China, Japan, India, Canada, just to name a few.

In those cases, Cyprus courts will examine the matter of recognition & enforcement by applying common law principles.

Common Law Action

The party in whose favour the judgment has been issued may bring a new action in a competent court in Cyprus. Such party may produce to the Cyprus Court the final judgment that has been rendered in the respective jurisdiction. If the Cyprus court finds that the foreign court had jurisdiction over the matter then the foreign judgment will be sufficient to form the basis of proceedings in Cyprus.

The jurisdiction of the foreign court will be assessed in accordance with the principles of private international law as these are applied by the Cyprus courts.

In the Supreme Court case of Achilleas Constantinou & Others v Ekdotikis Etaireias Dimokritos (2005) 1 AAD 1001 the Cypriot court adopted the reasoning of Emanuel v. Symon [1908] 1 K.B. 302 and clarified that in cases of judgments given in actions in personam the court of the country in which the judgment was obtained had jurisdiction only if:

1. The defendant was on the date of the commencement of the proceedings a resident of the country in which the judgment was obtained or – if a legal person – carrying business in the country in which the judgment was obtained; or
2. the defendant is a civilian or national of the country in which the judgment was obtained; or
3. the defendant in the character of a claimant has selected the forum in which he is afterwards sued; or
4. the defendant has voluntarily appeared or
5. the defendant has contracted to submit himself to the jurisdiction of the country in which the judgment was obtained

Prerequisites for recognition & enforcement

A foreign judgment in personam which was given by a Court having jurisdiction is capable of enforcement if the following criteria are met:

1. The judgment of the foreign court is final and conclusive
2. The judgment of the foreign court is for a debt or a definite sum of money
3. The judgment of the foreign court is not a judgment for taxes or penalties.

Grounds for Refusal

It is important to note that the Cyprus court will not rehear the case on its merits. The person against whom a foreign judgment is invoked can only raise a limited number of defences. For instance, and without limitation:

1. the judgement of the foreign court had been obtained by fraud; or
2. the judgement of the foreign court has been obtained otherwise than in accordance with principles of natural justice; or
3. the judgement of the foreign is contrary to public policy in Cyprus

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