Corporate, Commercial Law and Dispute Resolution · Commercial Disputes, Debt and Bankruptcy
Challenge and enforcement of arbitral awards in Ukraine involves two different procedural objectives: setting aside an award on limited statutory grounds or obtaining a court order that allows compulsory enforcement. Parties should identify which objective applies before preparing the application.
A domestic arbitral tribunal is a non-state dispute-resolution body created by agreement of interested individuals or legal entities to decide civil or commercial disputes within the scope permitted by law.
Grounds for Setting Aside an Award
The source material lists limited grounds for cancellation, including lack of jurisdiction over the dispute, decisions outside the arbitration agreement, invalidity of the arbitration agreement, improper composition of the tribunal and decisions affecting rights or obligations of persons who did not participate in the case.
Where only part of an award exceeds the arbitration agreement, the challenge may concern only that part. The source also refers to a three-month period for applying to set aside an award, including for affected persons who were not parties once they learned or could have learned about the decision.
Competent Court
The material refers to Article 51 of the Law of Ukraine on Arbitration Courts and to Articles 24 and 25 of the Commercial Procedural Code of Ukraine. Applications to challenge awards and applications for orders permitting compulsory enforcement are considered by appellate commercial courts acting as courts of first instance at the place where the arbitration was conducted.
Preparing the Application
The applicant should collect the arbitration agreement, award, procedural documents and evidence supporting the selected statutory ground. The challenge should focus on one of the recognised grounds rather than simply disagreement with the tribunal's conclusions.
The application should also distinguish procedural defects from disagreement with the merits. A court reviewing an arbitral award is not automatically conducting a new hearing of the underlying commercial dispute. The strongest application therefore links the requested cancellation to one of the specific statutory grounds and to documents from the arbitration file.
Arbitral award strategy should distinguish between cancellation and enforcement, verify the competent court and filing period, and build the application around the specific statutory ground supported by the arbitration record.
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Price: Challenging Arbitral Awards and Obtaining Enforcement Orders