HUNGARY Law and Practice Contributed by: Tamás Éless, Sarolta Édua Szabó, Ulrike Rein and Zsolt Farkas, Oppenheim Law Firm
• preserve evidence that may be relevant in deciding the dispute. In case of non-compliance with the interim measures ordered by the arbitral tribunal, interim measures and preliminary orders may be enforced by Hungar - ian courts in accordance with the rules on judicial enforcement (Act LIII of 1994 on Judicial Enforcement). Enforcement of the interim relief may be denied by the Hungarian courts in the following circumstances: • on the same grounds as those upon which the final award can be set aside (see 11.1 Grounds for Appeal ); • if the arbitral tribunal’s decision with respect to the provision of security in connection with the interim measures has not been complied with; • if the interim measures have been rescinded or suspended by the arbitral tribunal; or • if the interim measures are incompatible with the jurisdiction of the court. Due to the unfortunate wording of Section 1 (2) of the Act on the extraterritorial effect of certain provi - sions, the Hungarian courts may only enforce interim measures rendered by arbitral tribunals if the seat of the arbitral proceeding is in Hungary, or if the arbitral proceeding seated outside of Hungary is administered by a Hungarian permanent court of arbitration. Preliminary orders are binding on the parties but can - not be enforced via judicial enforcement. 6.2 Role of Courts The existence of a valid and enforceable arbitra - tion agreement does not preclude the parties from requesting preliminary or interim relief from the Hun - garian courts, provided that the Hungarian court has international jurisdiction to order such relief. Any party may seek interim or preliminary relief from Hungarian courts before or after the constitution of the arbitral tribunal. Hungarian courts are also entitled to enforce interim measures ordered by the arbitral tribunal; however, preliminary orders of the arbitral tribunal cannot be enforced via judicial enforcement. Hungarian courts can enforce interim measures ordered by the arbitral
tribunal even if the seat of arbitration is outside of Hungary, but only if the arbitral proceeding is admin - istered by a permanent court of arbitration seated in Hungary. The provisions of the Hungarian Arbitration Act per - mitting national courts to grant preliminary/interim relief in relation to arbitral proceedings have an extra - territorial effect, which means that they are applicable even if the seat of arbitration is outside of Hungary. The Hungarian Arbitration Act does not contain any provisions on emergency arbitrators. 6.3 Security for Costs Hungarian arbitration law does not contain any provi - sion explicitly granting an arbitral tribunal the power to order security for costs. The Hungarian Arbitration Act recognises the parties’ freedom to determine the rules of procedure applica - ble to their arbitral proceeding. However, as a man - datory and fundamental principle, it declares that the parties’ right to equal treatment and the right to be heard shall be granted in the arbitral procedure. In the absence of an agreement by the parties regard - ing the procedural rules or a reference to a set of rules to be administered by an institution, it is up to the arbitral tribunal, subject to the Hungarian Arbitration Act, to determine the rules governing the arbitral pro - cedure. 7. Procedure 7.1 Governing Rules The framework of default procedural rules determined by the Hungarian Arbitration Act addresses the follow - ing, among other matters: • the seat of arbitration; • the commencement of the arbitral proceedings; • the language of the proceedings; • the statements of claim and defence; • the oral hearings and the written proceedings; • intervention in the proceedings by a third party having legal interest;
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