CYPRUS Law and Practice Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC
6.2 Interim Relief to Support Arbitration and ADR It is generally possible for the parties to arbitration proceedings to apply to the court for interim relief in support of the arbitration, pursuant to the provisions of Article 9 of the International Commercial Arbitra- tion Law of 1987 (Law 101/1987) and of the recently enacted Articles 32 (A1) and 32 (AB1) of the Courts of Justice Law of 1960 (Law 14/1960). The possibility of obtaining interim relief from the court applies both in relation to domestic and foreign arbitrations and the relevant application may be made to the court before the commencement or during the arbitration proceed- ings or after the issuance of the arbitral award. The power of the court to grant interim relief in support of a foreign arbitration is exercised: • when the respondent resides within the jurisdiction of the court; • where the property or the subject of the relief is located within the jurisdiction of the court; or • where some other material link with the Republic of Cyprus exists. However, it must be noted that these provisions only concern arbitration proceedings. The Cypriot legisla- tion does not contain any provisions for the granting of interim relief in relation to other ADR methods. 6.3 Timing of Applications for Interim Relief According to the recently enacted Article 32 (A1) of the Courts of Justice Law of 1960 (Law 14/1960), an application to the court for interim relief may be made either before the commencement of, or during the course of, or after the issuance of a decision in the context of the relevant judicial or arbitration pro- ceedings. 6.4 Security for Costs A claimant who resides outside the European Union may be ordered to provide security for costs, upon an application by the defendant. The granting of an order for security for costs ultimately depends on the discretion of the court. One of the key factors to be taken into account is whether that claimant pos- sesses assets in Cyprus which might be available for enforcement towards the defendant’s costs. Where the court orders a security for costs, it usually sus-
pends the proceedings until such security is provided; and, where that security is not provided within the time prescribed by the court order, the court may dismiss the claim. 6.5 Interim Injunctions It is possible for a party to judicial or arbitration pro- ceedings to apply to the court for interim injunctions. Such an application may be filed by the interested party either before the commencement of or during the judicial or arbitration proceedings in question, as well as after the issuance of a judgment on the mer- its of the case. The possibility to apply for an interim injunction also exists in support of foreign judicial or arbitration proceedings. According to Article 32 (1) of the Courts of Justice Law of 1960 (Law 14/1960), in order to grant an interim injunction the court must be satisfied that: • there is a serious issue to be tried on the merits of the case; • there is a visible possibility that the applicant may be entitled to a remedy; and • unless the requested injunction is granted, it will be difficult or impossible to fully administer justice at a later stage. If these three requirements are met, the court will pro- ceed to examine whether, under the circumstances of the case, it is just and equitable to grant the requested injunctions. In addition to the aforesaid requirements, in a case where the application for an injunction is filed on an ex parte basis, that is without notice to the respondent, the applicant must also (i) establish that there is urgency in granting the injunctions before the respondent is notified of the proceedings and (ii) make full and frank disclosure of all material facts to the court. If the court is satisfied that the requested injunction should be granted without prior notice to the respondent, the court will also request that the applicant provide a security, usually in the form of an undertaking or a bank guarantee, for any damage that may be incurred by the respondent if it later appears that the injunction should not have been granted.
135 CHAMBERS.COM
Powered by FlippingBook