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The Execution and Enforcement of the Arbitration Awards pursuant to the New Libyan Arbitration Law

The Arbitration Law in Libya was enacted under law No. 10 of 2023 which was into force on April, 17, 2023 and creates the procedural regimes for enforcing arbitration awards in Libya. This law is based on the UNCITRAL model law and has been adopted to provide for the fast and efficient procedure of arbitration and awards. This article will provide a detailed look at how arbitration awards are enforced under this new legislation.

In this part, the present work analyses the provisions for the issuance and validity of the arbitral awards focusing mainly on articles IV to VII of the New York Convention.

Parties are obliged to entail their specific awards in writing and signed by the arbitrators under the new law. The award should feature the rationale behind it unless the parties in question have predetermined otherwise. Additionally, the law makes it possible for the arbitration agreement to continue to be effective in situations where the overall contract has been declared null.

Application for Recognition and Enforcement of the Arbitral Award Made by The Tribunal

An applicant needs to approach the Libyan court system for recognition and the enforcement of the arbitral award. The application is submitted to the court of appeal and must include:

– A copy of the original authentic document is required and must be a copy of the arbitral award.

– The original or certified copy of the arbitration agreement.

– These documents in Arabic, signed and stamped by a lawyer or attorney:

The Judicial Review and Valid Grounds for Refusal

The court of appeal deals with the application for enforcement of the maintenance order. The law proscribes very few circumstances where refusal can happen curtsey the view in line with the international standards. These include instances where:

– The arbitration agreement which has brought the arbitration is not valid.

– A party was not served appropriately or failed to make their arguments as envisioned.

– The application expands beyond the issues that are covered by the arbitration agreement and therefore is improper.

–  It was clear that there was a breach of the agreement which provided for the composition of the arbitral tribunal

– The award is not final, and the award is adjusted or suspended by a competent authority.

Temporary Relief and Jurisdiction of the State Courts

It is important to note that Libyan state courts can grant interim measures before the constitution of the arbitral tribunal to ensure the status quo or prevent prejudicial action during the proceeding. Upon establishment of the tribunal, the tribunal has the power to determine its jurisdiction as well as to grant any interim measures which may be required.

Foreign Awards: Recognition and Enforcement

The law also deals with the recognition and enforcement of international awards, a massive step forward since Libya is not a signatory to the New York Convention. Foreign awards are recognized under the principle of reciprocity and a similar rationale would be used in the refusal of the recognition like that provided under the New York Convention.

Electronic Arbitration

The new law also provides for electronic arbitration. This means that it is permissible to settle disputes through electronic means or other modern means of communication However, issues arising from the interplay between the general electronic arbitration rules and the other general rules will probably require some further elaboration through case law.

Conclusively, this law is a step forward in the development of the state policy concerning arbitration and its alignment with international standards. The law focuses on offering a more effective and reliable legal framework for the procurement, recognition, and enforcement of arbitral awards mainly to improve arbitration as a means of settling disputes in Libya. Nevertheless, the provision for electronic arbitration also enforces the idea that the law can account for modern technological advancements. In addition, this legal setting is likely to encourage more international business activity and investment due to the increased certainty and stability of legal processes generally.

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