There are different options to identify another party’s asset position, which differ according to the type of assets. However, a party to a litigation can identify assets through disclosure orders that are available both as a standalone procedure (Norwich Pharmacal) and when applying for a freezing order.

Real Estate Assets

Typically, a claimant (plaintiff) can conduct a search at the Land Registry Office only once they have secured a court judgment against the other party. However, there is a notable exception to this rule: banking institutions can conduct such searches without first securing a court judgment.

Shares

General searches can be conducted by the general public regarding companies at the Registrar of Companies’ website. However, searches that reveal registered shareholders can be conducted through the Registrar’s website at a (small) fee. Both general and specific searches are conducted online without the need of first securing a court judgment.

It should be noted that searches can only be conducted on a company-by-company basis and cannot be conducted on specific persons/shareholders, and searches do not reveal the ultimate beneficial owners of companies.

Monies Deposited in Banks

Banks will not reveal any amounts deposited with them unless ordered to do so by the court. This is usually done after a court judgment is issued.

The different types of domestic judgments are as follows:

• final judgment in default of appearance;
• final judgment in default of defence;
• interim judgments (freezing orders, prohibitory orders, etc);
• final judgment for a specific amount;
• final judgment for specific performance;
• final declaratory judgment; and
• final judgment for damages (tort, contract and violation of constitutional/other rights).

There are various ways to enforce a domestic judgment, the most commonly employed of which are outlined here.

Writ of Movables

This is carried out via a court bailiff, who attempts to collect the judgment debtor’s movable assets.

Registering a Charge (Memo) on Property

This is carried out at the Land Registry Office and essentially constitutes a charge on the debtor’s properties. If the asset is sold by the debtor, the proceeds will first be allocated to satisfy the value of the charge (memo), assuming, of course, there are no previous encumbrances/charges on the property. 

Application for an Order to Sell the Property

This is again processed through the Land Registry Office, which can initiate the sale of the property through an auction. This can be pursued when a previously registered encumbrance is registered on the property. In practice, this is very rarely successful.

Winding-Up Petition

Though not strictly an enforcement method, in cases where the debtor is a company, the successful claimant can initiate the winding-up of the company after demanding the judgment amount with the service of a statutory demand. It must be noted that winding-up applications can only be filed if the judgment amount is greater than EUR5,000.

Third-Party Debt Order (Garnishee Order)

This is an order pursued against a third party that owes or is about to transfer a monetary amount to the debtor. This order, if successful, circumvents the debtor entirely and collects the monies from the third party directly.

Moreover, the procedure of the above-mentioned enforcing methods is now governed and provided for by the New Rules of Civil Procedure, specifically by Parts 47–53.

What follows are the typical costs involved and the duration it takes to enforce a judgment based on different enforcement measures.

Writ of Movables

This is a speedy and cost-effective enforcement measure. However, it is important to note that the practical execution of these writs often proves to be challenging.

Registering a Charge (Memo) on Property

This is also a speedy and cost-effective measure that can be registered for a small fee as soon as the judgment is issued.

Application to Sell the Property

This can be filed for a small fee as soon as a memo is registered. However, in practice it takes a very long time (if ever) for these applications to be processed and acted upon by the Land Registry Office.

Winding-Up Petition

This is often the most effective measure against companies, especially if the company in question is operational and wishes to remain so but refuses to settle the judgment debt.

The cost depends on whether the winding-up petition will be challenged by the debtor or any other interested party.

Third-Party Debt Order (Garnishee Order)

This is also an effective measure in cases where the successful claimant has knowledge or reasonable suspicion of a third party that owes or is about to transfer a monetary amount to the debtor. This measure is often pursued against banks or tenants of the debtor.

The usual practice is for the judgment creditor to secure an ex parte order preventing the third-party debtor of the judgment debtor from paying the judgment debtor directly and an inter partes application for an order against the third party to effect the payment directly to the judgment creditor. Timing depends on whether the application will be contested by the judgment debtor or third party.

The judgment creditor may apply in court for the financial examination of the judgment debtor, and this procedure may include an order against the judgment debtor to file an affidavit listing all movable or immovable assets they may own.

Real Estate Assets

Typically, a claimant (plaintiff) can only conduct a search at the Land Registry Office only once they have secured a court judgment against the other party, with the aim of registering an encumbrance/memo on properties and subsequently an application to sell the property.

Monies Deposited in Banks

Banks will not reveal any amounts deposited with them unless ordered to do so by the court. This is usually done after a court judgment, through the filing of a third-party debt order (garnishee order).

Shares

Searches on companies that aim to establish the company’s shareholders can also be conducted prior to the issuance of a final court judgment.

Defendants may seek to challenge the enforcement of domestic judgments in one of the ways outlined here.

In Default of Appearance

The defendant may claim that the proceedings were not properly served on them and therefore seek to set aside the judgment. Delay by the defendant in pursuing such an action, or delay in filing the appearance in the first place, are the two major factors taken into consideration by courts examining such applications to set aside judgments issued by default of appearance.

Judgment by Consent

A judgment by consent cannot be easily disputed or set aside. This may, however, be challenged on certain grounds, for example, when the defendant did not authorise their lawyer to accept judgment. In cases where a consensual judgment was secured, a third party may seek to have the judgment set aside on the basis of an argument of collusion/fraud. 

Stay Pending Appeal

Following a hearing of a case on its merits, the unsuccessful defendant may seek to stay the execution of the judgment pending appeal. This typically requires that the defendant demonstrate that they will be in a position to satisfy the judgment if their appeal is unsuccessful. Defendants are usually required to provide bank (or other) guarantees for the amount of the judgment. Such a stay application may either be filed with the district court, or with the appellate court.

There is no type of judgment that cannot be enforced, other than declaratory judgments which by their nature have no enforcement capacity.

There is no register of domestic judgments. However, there is a publicly available database that includes most interim and final judgments.

The legal issues relating to the enforcement of foreign judgments vary according to the jurisdiction in which the judgment was originally issued.

EU Judgments

As the Republic of Cyprus is a member of the EU, EU judgments can be recognised and enforced under the provisions of Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. It should be noted that recognition is (nearly) automatic, as the successful claimant need only present the EU judgment together with the relevant “certificate” from the court that originally issued the judgment for the judgment to be enlisted in Cyprus. The Regulation, by introducing harmonised rules, simplifies the process and eliminates the need for any additional declaration of enforceability.

Russian Federation Judgments

Regarding judgments issued by a court in the Russian Federation, the process is governed by the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters.

Bilateral Treaties

The Republic of Cyprus has entered into, and is in the process of entering into, bilateral treaties with other states regarding the recognition and enforcement of judgments specifically from these states. Where a judgment is issued from a state with which the Republic has a bilateral treaty, the provisions of this treaty will apply.

Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters

On 1 September 2023, the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters entered into force.

It does not prevent or limit the recognition and enforcement of judgments under national law, bilateral, regional or other international instruments (Articles 15 and 23, with the exception of Article 6). This basically means that it essentially complements the existing instruments for the recognition of judgments.

Common Law

A foreign judgment can alternatively be recognised and enforced at common law. The process involves filing an action based on the foreign judgment.

Other than procedural aspects, the foreign judgment debtor may also invoke the argument of Cypriot public policy.

The procedure and legal requirements that need to be met for the purpose of recognition and enforcement of a foreign judgment vary to a significant extent depending on the country of origin of the foreign judgment, as different legal frameworks apply in each case, as described in 3.1 Legal Issues Concerning Enforcement of Foreign Judgments.

In relation to EU judgments, the relevant EU Regulation 1215/2012 relates to judgments as “[a]ny judgment given by a court or tribunal of an EU member state, whatever the judgment may be called, including a decree, order, decision or writ of execution, as well as the determination of costs or expenses by an officer of the court”.

The Regulation does not seem to extend to revenue, customs or administrative matters or to the liability of the state for acts and omissions in the exercise of state authority (acta iure imperii). In addition, the Regulation does not apply to:

• the status or legal capacity of natural persons, rights in property arising out of a matrimonial relationship or out of a relationship deemed by the law applicable to such relationship to have comparable effects to marriage;
• bankruptcy proceedings relating to the winding up of insolvent companies or other legal persons, judicial arrangements, compositions and analogous proceedings;
• social security;
• arbitration;
• maintenance obligations arising from a family relationship, parentage, marriage or affinity; and
• wills and succession, including maintenance obligations arising by reason of death.

With regard to foreign judgments issued by courts of countries with which Cyprus has entered into bilateral or multinational treaties, the foreign judgments that may be recognised in Cyprus will depend on the provisions of the treaties and usually concern civil or commercial matters (but many also include judgments on matrimonial disputes).

In terms of common law enforcement of foreign judgments, the following requirements must be met for a foreign judgment to be registered and enforced in Cyprus under common law rules.

• The judgment must be for a definite sum, limited to enforceable monetary judgments.
• The judgment must be final and conclusive, and not subject to alteration by the issuing court, except where an appeal stays the judgment.
• The foreign court must have had jurisdiction under Cypriot conflict of law rules to issue the judgment.

This, again, is subject to public policy considerations and adherence to due process, which are explored in other sections.

A foreign judgment will first need to be registered before it can be enforced.

Recognition and enforcement of an EU judgment requires no special procedure or declaration of enforceability. A judgment creditor may register an EU judgment by sending a letter to the registrar of the competent district court to register the judgment. Once registered, the judgment may be enforced as if it were issued by a Cyprus court.

The recognition of foreign (non-EU) judgments from jurisdictions with which the Republic of Cyprus has a bilateral treaty for mutual recognition of judgments is provided for by Law 121(I)/2000, which states that a successful plaintiff seeking to register a foreign judgment has to file an application by summons. The defendant/respondent can proceed with filing an objection, and the court will proceed with issuing its judgment regarding the registration of the judgment.

There is specific legislation regarding commonwealth jurisdictions (Cap 10), which allows the successful plaintiff, within six years of receiving a judgment from a commonwealth jurisdiction, to seek to register this judgment in the Republic of Cyprus through a court application. The defendant has the option to file an application in court to set aside the registration of the judgment.

Once a foreign judgment from any jurisdiction is recognised or registered, the successful claimant can then initiate enforcement measures in the same manner as they would for a domestic judgment.

The time and costs involved in enforcing foreign judgments vary according to the jurisdiction in which the judgment was originally issued and whether the procedure will be contested by the judgment debtor (and in some limited cases, by intervening third parties).

EU Judgments

Since these are nearly automatically recognised, the process to “enlist” the judgment in the Republic is very speedy, with minimal costs involved, barring any fees agreed upon with a law firm.

For the enforcement of a foreign judgment at common law, the court fees will depend on the sum awarded under the foreign judgment or the value of the subject matter of the foreign judgment. These figures are assessed as per the table of fees set out in the Cypriot Civil Procedure Rules. For example, for an amount of EUR2 million or higher, the court stamps/fees are about EUR1,000.

Foreign applicants for recognition and enforcement of foreign judgments may be requested to deposit security for costs if they are not residents of:

• an EU member state; or
• countries with which Cyprus has concluded a bilateral treaty for the provision of mutual assistance in civil and criminal matters, which excludes the provision of security for costs for their residents.

For EU judgments covered by the Recast Brussels Regulation, the European Enforcement Order Regulation and the European Order of Payment Regulation, there is no need to obtain a declaration of enforceability.

For recognition and enforcement under statutes of non-European judgments, the timeframe for obtaining a declaration of enforceability may range from approximately eight to 12 months from the date of filing.

For the enforcement of foreign judgments at common law, the timeframe for adjudication may range from approximately two to five years from the date of filing.

Russian Federation Judgments

The matter is regulated by the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (N172/86). The process depends upon the recognition of the judgment via the aforementioned Treaty. According to Article 23, even a foreign judgment for costs can be recognised and enforced automatically. Timeframes will vary depending on whether the judgment creditor files the application directly (if the conditions under the treaty are met) or whether the designated authority files the application.

The grounds on which a party can resist and challenge the recognition and enforcement of a foreign judgment are limited. These include (not exhaustively):

• the judgment is not a judgment to which this part of the law applies, or was registered in contravention of the law;
• lack of jurisdiction in the courts of the country of origin;
• the defendant in the original proceedings did not receive sufficient notice to enable him/her to defend the proceedings and did not appear;
• the judgment was obtained by fraud;
• the enforcement is contrary to public policy in the country of the registering court; or
• the rights under the judgment are not vested in the person who made the application for enforcement.

Cypriot arbitration laws include Law 101/1987 on International Commercial Arbitration which is based on the 1985 UNCITRAL Model Law on International Commercial Arbitration and Cap. 4 – Arbitration Law which governs domestic arbitration and mirrors the English Arbitration Act of 1950. In addition, the New York Convention (1958) was incorporated into Cyprus law via Ratification Law 84/1979. The grounds of arbitration laws for resisting the enforcement of an arbitral award and/or setting it aside mirror the grounds of Article 5 of the New York Convention.

In addition, Law 121(I)/2000 and Part 44 of the Civil Procedure Rules (CPR) also govern the recognition and enforcement of arbitral awards.

Variations in approach to enforcement of arbitral awards depend on whether the award is a domestic or foreign award and, if it is a foreign award, whether a particular convention applies, allowing for recognition and enforcement.

Similar to the registration/recognition of foreign judgments, the recognition of foreign arbitral awards from jurisdictions with which the Republic of Cyprus has a bilateral treaty for mutual recognition of arbitral awards is provided for through Law 121(I)/2000, which states that the successful party seeking to register the arbitral awards has to file an application by summons. The defendant/respondent can proceed with filing an objection, and the court will proceed with issuing its judgment regarding the registration of the judgment. 

The first step when considering whether an award will be enforced is to look to its form and whether it meets the specific criteria listed in the different arbitration laws and rules.

As per Section 21 of the International Arbitration Law, an arbitral award can be enforced, with the permission of the court, in the same way as a judicial decision/judicial order. Generally speaking, courts in Cyprus take a non-intervention, pro-enforcement approach. Once an arbitral award has been awarded, one can expect the execution to take one of the following forms (in relation to monetary claims):

• seizure and sale of movable property;
• sale of immovable property or charging immovable property;
• sequestration of property;
• attachment of property;
• ordering the delivery of movable or immovable property;
• examining the judgment debtor in the court, leading to the issuance of a court order for payment in instalments, or an encumbrance on company shares and stocks; or
• judgment creditors may also consider applying for the liquidation of companies where the relevant judgment or award registered relates to legal entities registered in Cyprus.

The costs involved typically mirror the costs of enforcing a judicial award and/or decision. Enforcement of both domestic and foreign arbitral awards requires the payment of legal fees, stamp duty and service expenses and the amounts will depend on whether the procedure will be challenged/defended. In cases where the enforcement of the award is permitted, there are also costs in enforcing against the defendant’s assets. The timeframe depends on whether the applicant also files for an interim freezing injunction (in which case the interim order application will usually be adjudicated first); however, generally it can take between six and 12 months for the application to be fully adjudicated.

Cyprus courts can refuse the recognition and registration of an international arbitral award only on the basis of the grounds stipulated in Article V of the New York Convention, as transposed in Law 84/1979, and Article 36 of Law 101/87, which are the following:

• incapacity of the parties or invalidity of the arbitration agreement;
• failure to give proper notice of the appointment of the arbitrator or of the arbitration proceedings to the party against whom the award is made or that a party was otherwise unable to present their case;
• the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration or it contains decisions on matters beyond the scope of the submission to arbitration;
• the composition of the arbitral authority or the arbitral procedure was not in accordance with the parties’ agreement, or failing such agreement, was not in accordance with the law of the country where the arbitration took place;
• the award has not yet become binding on the parties or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made;
• the subject matter of the dispute is not capable of settlement by arbitration under the law of the forum (Cyprus in this regard); or
• the recognition or enforcement of the award is contrary to the public order of the forum (Cyprus).