AZERBAIJAN Law and Practice Contributed by: Parviz Huseynov, GRATA International, Azerbaijan
The Law on Arbitration provides for the following interim measures: • maintaining or restoring the status quo pending the resolution of the dispute; • taking measures to prevent current or imminent harm, including harm to the arbitral proceedings, or refraining from actions likely to cause such harm; • preserving assets necessary for the enforcement of the final arbitral award; and • preserving evidence that may be relevant and material to the resolution of the dispute. 6.2 Role of Courts The Law on Arbitration entitles the parties to apply to the competent court for interim measures either before the commencement of the arbitral proceedings or during the course of the arbitration. The court is empowered to grant such measures where the statu - tory requirements are satisfied. Upon the application of a party, the competent com - mercial court may also order interim measures in sup - port of arbitral proceedings. This power is not limited to arbitrations seated in Azerbaijan. Regardless of whether the place of arbitration is located within or outside the territory of the Republic of Azerbaijan, the commercial courts retain the powers conferred upon them by the Civil Procedure Code in relation to the granting of interim measures. The jurisdiction of the national courts in this respect stems from their assistance functions in support of arbitration under the Civil Procedure Code. Accord - ingly, the granting of interim measures constitutes one of the forms of judicial assistance available in arbitral proceedings. Where the seat of arbitration has not been determined or is located outside the Republic of Azerbaijan, the relevant application shall be submitted to the Baku Commercial Court. Under the Civil Procedure Code, the court may, upon the application of a party to an arbitration dispute, order interim measures where the actions or omis - sions of the opposing party may render the protection or restoration of the applicant’s rights impossible or substantially more difficult.
The types of interim measures available under the Civil Procedure Code include: • attachment of property belonging to a party to the arbitration dispute that is in the possession of that party or other persons; and • prohibiting a party to the arbitration dispute from carrying out specified acts. In addition, an application for interim measures may be submitted either before the commencement of the arbitral proceedings or during the arbitration. It should also be noted that, although the concept of an emergency arbitrator is well established in inter - national arbitration practice, it has not been expressly incorporated into Azerbaijani legislation. Nevertheless, the Arbitration Rules of the Baku Arbi - tration Centre regulate the appointment of an emer - gency arbitrator and the applicable emergency arbi - tration procedure. This mechanism, however, is not expressly regulated under the Law on Arbitration or Under the Law on Arbitration, the arbitral tribunal may require the party requesting interim measures to provide appropriate security in connection with such measures. Similarly, the Civil Procedure Code pro - vides that, where an application for interim measures is submitted before the commencement of the arbitral proceedings or during the arbitration, the court may require the applicant to provide suitable security. Such security may, at the court’s discretion, take the form of a bank guarantee or the deposit of a specified sum into the notary’s deposit account. Failure to provide the required security constitutes grounds for refusing the application for interim measures. In addition to security for interim measures, the pro - vision of security for arbitration costs may also be required. Unless otherwise provided in the arbitration agreement or agreed by the parties, the allocation of arbitration costs is governed by the Law on Arbitra - tion. In this regard, the arbitral tribunal may require the parties to provide security for arbitration fees and other arbitration costs. Where such security is not pro - vided, the arbitral tribunal may terminate the arbitral the Civil Procedure Code. 6.3 Security for Costs
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