CYPRUS Law and Practice Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC
3.7 Regulation of Arbitration Arbitration in Cyprus is primarily governed by: • the International Commercial Arbitration Law (Law 101/1987), which is based on the UNCITRAL Model Law; and • the Arbitration Law (Cap 4), which applies to domestic arbitration. Cyprus is also a party to the New York Convention. 3.8 Court Powers The courts have a supportive role in arbitration, includ- ing: • granting of interim relief; • assistance with the appointment or removal of arbitrators; • taking of evidence; and • recognition and enforcement of awards. 3.9 Court Intervention Court intervention is generally limited and arises main- ly in relation to: • challenges to jurisdiction or the arbitration agree- ment; • applications to set aside awards; • interim measures; and • enforcement proceedings. 3.10 Relief Arbitral tribunals may award: • damages; • declaratory relief; and • in appropriate cases, specific performance. They may also grant interim measures, although enforcement typically requires court involvement. 4. Other ADR Methods 4.1 ADR Procedures Alternative dispute resolution mechanisms available in Cyprus include:
monly used in sectors such as construction and shareholder disputes. 3.2 Restrictions on Use of Arbitration There are no general restrictions on the use of arbitra- tion in Cyprus. However, certain matters are not arbi- trable, including criminal matters and issues involving public policy, such as the winding up of companies and certain aspects of insolvency. Disputes concern- ing rights in rem over immovable property may also fall outside the scope of arbitration. 3.3 Advantages of Arbitration The main advantages of arbitration in Cyprus include: • procedural flexibility; • party autonomy in the appointment of arbitrators; and • confidentiality. Arbitration is often perceived as faster than court pro- ceedings and allows parties to select arbitrators with relevant expertise. 3.4 Disadvantages of Arbitration Arbitration can be costly, particularly in complex inter- national disputes, and there is only limited scope for appeal or review of awards. In practice, it does not always result in significant time savings, especially where procedural issues arise or court assistance becomes necessary. 3.5 Arbitral Institutions Cyprus does not have a dominant domestic arbitral institution. The ETEK ADR Centre is among the more frequently used local options in the construction sec- tor. In practice, parties often refer disputes to interna- tional institutions such as the London Court of Inter- national Arbitration (LCIA) and International Chamber of Commerce (ICC). 3.6 Length of Proceedings The duration of arbitral proceedings varies depending on the complexity of the dispute, but typically ranges between 12 and 24 months. Simpler or expedited matters may be resolved more quickly.
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