AZERBAIJAN Law and Practice Contributed by: Parviz Huseynov, GRATA International, Azerbaijan
• the arbitral tribunal may require the parties to pro - vide security for arbitration fees and other arbitra - tion costs and, where such security is not provid - ed, may terminate the arbitral proceedings. In addition, where one party is unable to provide the required security, the other party may provide such security in full. A decision by the arbitral tribunal that it lacks jurisdiction does not affect its authority to ren - der an award allocating the arbitration costs already incurred. A domestic arbitral award may be set aside by the commercial courts, in whole or in part, where any of the following grounds exists. • Where the applying party submits the following evidence: (a) one of the parties to the arbitration agreement lacked legal capacity at the time of the conclu - sion of the agreement under the law applicable to that party, or the arbitration agreement is invalid under the law to which the parties have subjected it or, failing any indication thereon, under the laws of the Republic of Azerbaijan; (b) the party making the application was not duly notified of the appointment of an arbitrator or of the arbitral proceedings, or was otherwise unable to present its objections and evidence; (c) the award deals with a dispute not contem - plated by or not falling within the terms of the 11. Review of an Award 11.1 Grounds for Appeal arbitration agreement, or contains decisions on matters beyond the scope of the arbitration agreement or the claims submitted – provided that, if the decisions on matters covered by the arbitration agreement or the claims submitted can be separated from those on matters not so covered, only the parts of the award contain - ing decisions on matters not covered by the arbitration agreement or the claims submitted may be set aside; or (d) the composition of the arbitral tribunal or the arbitral proceedings was not in accordance with the agreement of the parties or, failing
such agreement, with the Law on Arbitration. • Where the court determines that: (a) the subject-matter of the dispute is not capa - ble of settlement by arbitration under the laws of the Republic of Azerbaijan; or (b) the arbitral award is contrary to the Constitu - tion of the Republic of Azerbaijan or to the public policy – ie, the imperative, universal and special public significance principles that con - stitute the foundation of the political, economic and legal structure of the Republic of Azerbai - jan. Unless otherwise agreed by the parties, an application for setting aside an arbitral award must be filed within three months from the date on which the applicant received the award. Where an application has been made for the interpretation or correction of the award, or for the issuance of an additional award, the three- month period runs from the date on which the arbitral tribunal renders its decision on that application. These time limits do not apply where the arbitral award was procured through fraud or corruption, or where the award resulted from the intentional sub- mission of false witness testimony, a knowingly false expert opinion, the falsification of documents, physi - cal evidence or other evidentiary materials, or criminal conduct committed by the parties, other participants in the proceedings, or the arbitrators. 11.2 Excluding/Expanding the Scope of Appeal The scope of appeal against an arbitral award cannot be expanded or restricted by agreement between the parties. 11.3 Standard of Judicial Review The court may not review the merits of the arbitral tribunal’s decision when determining an application to set aside an arbitral award.
12. Enforcement of an Award 12.1 New York Convention
Azerbaijan has acceded to the 1958 New York Con - vention on the Recognition and Enforcement of For -
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