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Resolution of issues related to arbitral awards can be carried out in court. This blog post takes a closer look at how you can enforce an arbitral award through a court in the Czech Republic.

In view of the recent changes, today the procedural legislation of Сzech Republic provides for a fairly simple and prompt procedure for the recognition and enforcement of decisions of international arbitrations on its territory. At the same time, the claimant should not forget about the intricacies of the local legislation when initiating the procedure.

Be sure to notify the debtor

Even before the commencement of the procedure for the recognition and enforcement of the arbitral award in the Сzech Republic, the claimant must "make sure" that the respondent (debtor) is notified of the appointment of the arbitrator, of the arbitration proceedings, since if this rule is not observed, the court may refuse to satisfy the claimant's application.

Debtor’s assets

One of the main questions that arises for a claimant when executing an arbitral award in the Czech Republic is whether the debtor has assets to pay off the debt?

As part of the recognition and enforcement of arbitral awards in this jurisdiction, the debtor's property is used by creditors as the main instrument of influence.

Arrest and sale of property

The appropriation of assets is carried out through enforcement proceedings. The applicant must describe the assets of the debtor that may be raised. Typically, the court will decide to enforce the award without a defendant and determine the specific assets to be seized.

The defendant can appeal against the court decision – in this case, the execution of the decision is suspended until the appellate court confirms it.

Subsequently, the assets are valued and sold at public auction.

Measures applied against movable and intangible property include:

  1. seizure of income;
  2. seizure of receivables;
  3. sale of movable property;
  4. seizure of property of enterprises;
  5. compensation for moral or material damage.

Separate measures are also applied if it is required to settle a moral claim (for example, division of property).

Final word

Czech legislation is sufficiently developed to solve the tasks of enforcing arbitral awards and, at the same time, provides a fairly wide range of rights that allow the same decisions to be challenged. Czech national legislation is supported by international documents that provide broader protection of rights, although not all of its provisions are reflected in national legislation. 

Thus, the jurisdiction can be recommended both for arbitration proceedings and for litigation related to arbitral awards. Please note that all the material presented is published for informational purposes and is not legal advice. IQ Decision UK solicitors provide advice on the initiation of the arbitration process in the EU, as well as on the enforcement of arbitral awards and other related topics on an individual basis.

Also, the experts of our company provide assistance in arbitration proceedings in the EU. We are ready to represent our clients in arbitration proceedings, for example, in the resolution of international commercial disputes and disputes of a different nature, and to provide other related legal services.

You can find out details about our services and sign up for a personal consultation by contacting us directly, in any way convenient for you, using the contacts below.