Introduction:
The enforcement of foreign civil judgments concerns judgment creditors, especially when the assets of judgment debtors are located outside the jurisdiction where the judgments were issued. This article aims to provide an overview of the laws and regulations governing the enforcement of foreign civil judgments in Iran .
Unlike foreign arbitral awards, which benefit from the unified enforcement system under the New York Convention of 1958, foreign judgments lack such an international framework. The most recent attempt to establish a similar system resulted in the 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters, which has only three signatories to date .
In the absence of a comprehensive international treaty, the enforcement of foreign judgments is governed by domestic laws and any relevant regional or bilateral treaties. In Iran, such enforcement is primarily governed by the Civil Code (1928), the Law on the Enforcement of Civil Judgments (1977), and various bilateral treaties known as “treaties of judicial assistance.”
This article examines the requirements for enforcing foreign court decisions under these regulations. The first section discusses the requirements and restrictions imposed by the Civil Code, while the second section focuses on the relevant provisions of judicial assistance treaties. Foreign criminal judgments are beyond the scope of this article; references to foreign judgments pertain to civil judgments unless otherwise specified.
The principal legal framework for enforcing foreign judgments in Iran is provided by the Civil Code, particularly articles 972, 974, 975, and 1295. These provisions set the general framework for the recognition and enforcement of foreign court decisions. The specifics are largely determined by the Law on the Enforcement of Civil Judgments.
1.1. Article 972: Order of Execution by the Iranian Court
According to Article 972 of the Iranian Civil Code, “Effect cannot be given in Iran to judgments issued by foreign courts and official documents recognized as being enforceable by law in a foreign country unless an order to do so is issued in accordance with Iranian laws.”
Foreign judgments are not directly enforceable in Iranian courts. Recognition must precede enforcement. Once the Iranian court recognizes that a judgment meets legal requirements, it issues an enforcement order, allowing the foreign court decision to be executed.
This requirement for an enforcement order applies equally to domestic and foreign judgments. Both must undergo the enforcement procedure within Iran.
1.2. The Competent Iranian Court to Issue an Order of Execution
Civil Courts in Iran, as general courts, have the authority to hear all civil disputes. They consist of preliminary courts and appellate courts. Preliminary courts handle all types of civil disputes, while appellate courts hear appeals from preliminary court decisions. A preliminary court decision is not final until upheld or reversed by an appellate court or after 20 days without an appeal .
Preliminary courts have branches with execution offices that oversee the enforcement of their decisions. Enforcement requests must be made to the same preliminary court branch that rendered the judgment. Even if upheld by an appellate court, enforcement requests are still made at the preliminary court level.
1.3. Article 1295: Requirements for Enforcement of Foreign Court Decisions
Article 1295 of the Civil Code states, “Iranian courts will give to documents drawn up in foreign countries the same credit as the said documents possess in accordance with the laws of the country in which they have been drawn up,” subject to several conditions.
Four general requirements under Article 1295 for the enforcement of foreign judgments include:
2.1. Validity
Only judgments that “have not lost their validity for any legal reason” can be enforced in Iran. While Article 1295 does not explicitly require finality and binding status, Article 169 of the Law on the Execution of Civil Judgments provides more detail on these requirements.
2.2. Reciprocity
The principle of reciprocity, as stipulated in Article 1295, requires that foreign courts also enforce Iranian judgments. Proof of reciprocity can be legal (laws of the foreign country provide for it), contractual (bilateral treaties), or de facto (evidence that foreign courts have enforced Iranian judgments). Countries like France, Austria, and Russia have treaties with Iran for reciprocal judgment enforcement.
2.3. Public Order and Good Morals
Public order laws protect public interests, and any foreign judgment that violates these regulations cannot be enforced. For instance, Sharia rules prohibiting interest payments are considered part of public order. Similarly, Article 966 of the Civil Code mandates that the ownership and other rights to immovable property are governed by the law of the country where the property is located. A foreign judgment on immovable property in Iran would thus be unenforceable.
2.4. Certification
Article 1295 requires foreign documents to comply with the laws where they were drawn up, confirmed by Iranian diplomatic representatives in the foreign country or vice versa.
The 1977 Law on the Execution of Civil Judgments outlines the requirements for enforcing civil judgments in Iran. Article 169 specifies conditions for foreign judgments, including finality, public order compliance, and reciprocity. Other requirements are discussed below.
3.1. Finality Requirement
Enforceable judgments must be final and binding in the country of origin. A judgment under appeal can still be considered final if the foreign laws allow it.
3.2. Execution Order by Competent Foreign Authorities
A judgment must be enforceable in its country of origin. Article 169.8 requires an execution order from competent foreign authorities.
3.3. Compliance with International Treaties or Specific Laws
Article 169 and Article 974 of the Civil Code mandate that foreign judgments comply with international treaties or specific laws, derived from Article 9 of the Civil Code, which equates international treaties with domestic laws .
3.4. Absence of a Contrary Judgment
A foreign judgment cannot be enforced if an Iranian court has issued a contrary judgment on the same matter.
3.5. Exclusive Jurisdiction of Iranian Courts
Matters within the exclusive jurisdiction of Iranian courts cannot be adjudicated by foreign courts. Article 169.7 states that foreign judgments on immovable property in Iran or related rights are unenforceable.
Concluding Remarks
Foreign judgments can be enforced in Iran if they meet specific conditions: finality, validity, binding status, and present enforceability in the country of origin. An execution order from competent authorities in the home country is required. The judgment must not conflict with Iranian public order, good morals, international treaties, or specific laws. Reciprocity is also necessary, whether contractual, legal, or de facto.
The Iranian court does not examine the merits of the foreign judgment but will ensure it does not contravene public order or specific laws. If a matter falls under the exclusive jurisdiction of Iranian courts, a foreign judgment on that matter will not be enforceable. Reciprocity agreements between Iran and other countries take precedence over other laws regulating foreign judgment enforcement.
By following these guidelines, Salam Law Group ensures the proper enforcement of foreign civil judgments in Iran, providing clarity and legal security for clients navigating international legal waters.