CYPRUS Trends and Developments Contributed by: Menelaos Kyprianou, Constantina Zantira, Andreas Lytras and Eleana Poulladou, Michael Kyprianou & Co LLC
intervention of the court to resolve a dispute, adding to the quality of the cases that are actually led to court. Simplification of Service of Proceedings New procedural framework The new procedural framework governing service of proceedings under Part 6 of the Civil Procedure Rules 2023 introduces a more flexible and commercially realistic approach to service, particularly in cases involving cross-border transactions and foreign cor- porate structures. Written agreement as to method and place of service A key innovation appears in Part 6.2, which provides that where the parties have entered into a written agreement as to the method and place of service of the claim, service may validly be effected within the jurisdiction in accordance with that agreement. Impor- tantly, under Part 6.1 (1), the concept of a “written agreement” is defined broadly and includes agree- ments concluded by email, fax, letter, or any combina- tion of those methods. In addition, Part 6.2 (2) makes clear that such an agreement may be concluded either before or after service, thereby giving the rule notable practical flexibility. From a commercial perspective, this provision is par- ticularly significant. It recognises the reality that parties to modern transactions often regulate service issues expressly in their contracts. Where such a clause exists, a claimant may rely on it when commencing proceedings, thereby avoiding unnecessary delays and reducing the scope for procedural disputes. Service on legal persons The Rules also clarify service on legal persons. Under Part 6.4 (7), in the absence of a specific statutory pro- vision governing service on a particular legal entity, valid service may be effected by serving a copy of the claim form on senior officers of the organisation, including the president, director, other senior officer, treasurer or secretary, or by leaving it at the entity’s registered office or principal place of business with a person appearing authorised to accept service. The same rule specifically addresses foreign corporations and, where a company is not incorporated in Cyprus, service may be effected at its place of business in
Cyprus, or, if none exists, on a person in Cyprus who appears authorised to carry on business on its behalf. This provision is especially important in disputes involving international groups with operational pres- ence in Cyprus, as it facilitates service. Service on local agent acting for foreign principal A further noteworthy feature appears in Part 6.4 (8), which deals with contracts concluded in Cyprus through an agent acting for a foreign principal. Where a contract has been made in Cyprus by or through an agent who resides or carries on business in Cyprus on behalf of a principal resident or carrying on business outside Cyprus, the court may, with permission grant- ed before the agency or business relationship ends, allow service of the claim form on that local agent. The rule further requires that notice of the order granting permission, together with a true copy of the order and the claim form, be sent immediately by prepaid reg- istered post to the defendant outside the jurisdiction. This provision is of clear strategic importance, as it allows proceedings connected with persons abroad to be effectively commenced through their Cypriot intermediary, provided the procedural requirements are met. Service outside the jurisdiction This contractual flexibility is reinforced in the context of service outside the jurisdiction. Under Part 6.7 (1), no leave of the court is required for service outside Cyprus where the relevant EU instruments apply, including Regulation (EU) 1393/2007 on the service of judicial and extrajudicial documents and Regulation (EU) 1215/2012 (Brussels I Recast). This represents a significant departure from the position under the pre- vious rules, under which leave of the court was gen- erally required even in cases connected with the EU regime. The new provision therefore introduces a more streamlined approach to cross-border service within the European Union and reflects the broader objec- tive of facilitating the efficient conduct of proceedings involving parties located in other member states. This contractual flexibility is further reinforced by Part 6.9 (1), which permits contracting parties, subject to any applicable law, treaty or EU instrument to agree that service of a claim form in proceedings arising out of their contract may be effected at a specified place
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