AZERBAIJAN Law and Practice Contributed by: Parviz Huseynov, GRATA International, Azerbaijan
enforced); (d) the composition of the arbitral tribunal or the conduct of the arbitral proceedings was not in accordance with the agreement of the parties or, in the absence of such agreement, with the law of the place where the arbitration was conducted; or (e) the arbitral award has not yet become binding on the parties, or has been set aside or its en - forcement suspended by a court of the country in which, or under the law of which, the award was rendered. • Where the court determines that: (a) the subject matter of the dispute is not capable of settlement by arbitration under the laws of the Republic of Azerbaijan; or (b) the recognition or enforcement of the arbitral award would be contrary to the Constitution or the public policy of the Republic of Azerbaijan. The Law on Arbitration defines the concept of public policy as the imperative, universal and special public significance principles that constitute the foundation of the political, economic and legal structure of Azer - baijan. The Supreme Court of the Republic of Azerbaijan has also provided guidance on the interpretation of the public policy exception in its Ruling No 10-2 (102)- 14/2025, dated 8 August 2025. According to the Court, the concept of public policy must be interpreted nar - rowly. In reaching this conclusion, the Court relied on the approach adopted by courts in other jurisdictions when interpreting the public policy exception in the context of the recognition and enforcement of arbitral awards. The Supreme Court emphasised that the public policy exception is exceptional in nature and should be invoked only in limited circumstances. It further held that the arguments advanced by the respond - ent effectively invited the court to review the arbitral award on its merits, a power that the court does not possess in recognition and enforcement proceed - ings. Accordingly, recognition or enforcement will be refused only where the arbitral award is contrary to the fundamental legal principles forming the basis of the political, economic and legal order of the Republic of
Azerbaijan, rather than merely being inconsistent with a provision of Azerbaijani law.
13. Miscellaneous 13.1 Class Action or Group Arbitration Neither class arbitration nor group arbitration is spe - cifically regulated under Azerbaijani arbitration legis - lation. Nevertheless, from a theoretical perspective, multiple parties may pursue claims relating to the same subject matter within a single arbitral proceed - ing. 13.2 Ethical Codes Azerbaijani legislation does not establish any specific ethical rules applicable exclusively to arbitrators or counsel participating in arbitral proceedings. The only relevant instrument is the Regulation on the Rules of Professional Conduct for Advocates, adopted by the General Assembly (Conference) of the Azerbaijani Bar Association. However, that Regulation applies only to members of the Azerbaijani Bar Association. Accord - ingly, persons acting as representatives in arbitral pro - ceedings who are not members of the Bar Association are not subject to its provisions. 13.3 Third-Party Funding The Law on Arbitration does not regulate third-party funding or impose any restrictions on its use. 13.4 Consolidation The consolidation of arbitral proceedings is not regu - lated by the Law on Arbitration. However, the Arbitra - tion Rules of the Baku Arbitration Centre provide for the consolidation of proceedings, subject to certain conditions. Consolidation may be ordered where: • all parties have agreed to the consolidation; • all of the claims in the arbitrations arise out of, or in connection with, the same parties and the same legal relationship or relationships; or • the claims in the arbitrations arise out of or in con - nection with contracts consisting of a principal contract and one or more ancillary contracts, or the same transaction or series of transactions, provid - ed that the arbitration agreements are compatible.
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