Romania

Part I: what can be enforced?

1. What counts as an arbitral “award” that can be enforced?

An arbitral “award” that may be enforced is not defined as such by the Romanian Civil Procedure Code (Civil Procedure Code). However, an “award” is the award rendered by an arbitral tribunal in an arbitration procedure complying with the public order and the mandatory provisions of the law, as an alternative jurisdiction with private character, and which meets the formal requirements mentioned at question I(2) below.

As regards a foreign award, the law provides that a foreign award is any domestic or international arbitral decision rendered in a foreign state which is not considered a national award in Romania.

2. Formal requirements that an award needs to conform with to be enforceable

In accordance with Article 603 (Arbitral award) of the Civil Procedure Code, an award shall be in writing and shall include:

• the composition of the arbitral tribunal, the place and date of the award
• the full names of the parties, their domicile or residence or, where applicable, the names and places of business, plus the full names of the representatives of the parties and of the other persons who participated in the dispute
• a reference to the arbitration agreement under which the arbitration was conducted
• the subject matter of the dispute and the parties’ brief submissions
• the reasons in fact and in law for the award and, in the case of arbitration in equity, the reasons on which the award is based
• the operative part
• the signatures of all the arbitrators

Further, in an arbitral award that relates to a dispute concerning the transfer of ownership and/or another right in rem related to immovable property, the arbitral award shall be submitted to the court or the public notary to obtain a court order or, where appropriate, a notarial deed. If such an arbitral award is to be enforced, this shall be carried out by the court during the procedure for enforcement of the award.

3. Orders on interim measures: enforceability

a. Domestic awards

The domestic orders rendered in Romania on interim measures are not enforceable by themselves. The interested party may request the national court referred to in Article 547 of the Civil Procedure Code to order the enforcement of the measures ordered by the arbitral tribunal.

b. International commercial arbitration awards

Regarding international orders on interim measures, a distinction must be made between such orders rendered in (i) an international arbitration that takes place in Romania, and (ii) a foreign arbitration that is not Romanian (regardless of whether the arbitration is considered domestic or international).

In the first case, the provisions regarding domestic orders rendered in Romania, discussed at question I(3)(a) above, are applicable.

In the second case, it must be observed that the Civil Procedure Code solely regulates the recognition and enforcement of foreign arbitral awards, not of foreign arbitral orders. As such, an international order on an interim measure is not subject to recognition and enforcement in Romania. The interested party must file an interim measures request in front of the national courts.

4. Emergency awards: enforceability

a. Domestic awards

The emergency awards have in essence the nature of an order. This is expressly regulated by certain rules of arbitration of important arbitral institutions (eg, the International Chamber of Commerce (ICC) Rules of Arbitration and the Court of International Commercial Arbitration (CICA) Rules of Arbitration). Thus, the aspects regarding domestic orders on interim measures are also applicable in this case.

b. International commercial arbitration awards

Similarly, the aspects regarding international orders on interim measures are applicable in this case.

Part II: resisting enforcement

5 a. How are awards set aside?

In accordance with the provisions of the Civil Procedure Code, the arbitral award may be set aside only by an action for setting aside on the grounds expressly provided by Article 608 and detailed at question II(5)(d) below.

b. Can enforcement be resisted if the respondent has not formally applied to set aside the award?

Enforcement may be resisted even if no setting aside request has been made, but for reasons pertaining to the enforcement procedure and not the ones provided for the setting aside of the award. Thus, a party seeking to resist the enforcement of an arbitral award may not invoke the reasons provided by law for the setting aside before the enforcement court.

c. Can non-parties seek annulment?

Only the parties to the arbitration proceedings may seek the setting aside of the arbitral award by means of setting-aside requests.

d. Grounds to seek setting aside

The arbitral award may be set aside based on the following grounds:

• The dispute was not capable of settlement by means of arbitration.
• The arbitral tribunal resolved the dispute without an arbitration agreement or under a null and void or inoperative agreement.
• The arbitral tribunal was not constituted in accordance with the arbitration agreement.
• The party failed to appear at the time of the hearing and the summons was not duly served.
• The award was rendered after the expiry of the time limit for arbitration, although at least one of the parties has declared that it intends to invoke the time limit, and the parties have not agreed to continue the proceedings.
• The arbitral tribunal has ruled on matters not requested or has given more than requested.
• The arbitral award does not contain the operative part and the reasons, does not indicate the date and place of the award, or is not signed by the arbitrators.
• The arbitral award violates public policy, good morals, or mandatory provisions of law.
• If, after the arbitral award has been rendered, the Constitutional Court has ruled on the exception invoked in that case, declaring unconstitutional the law, ordinance, or a provision of a law or ordinance which was the subject of that exception, or other provisions of the contested Act, which necessarily and obviously cannot be dissociated from the provisions referred to in the referral.

e. Timelines to seek setting aside

The setting-aside request must be filed within one month from the communication of the arbitral award, or from the decision on the interpretation, supplementation, or correction of the award.

Where the setting-aside request is based on a decision of the Constitutional Court, it must be filed within three months from the publication of the Constitutional Court’s decision in the Official Gazette of Romania, Part I.

f. Grounds to resist enforcement

A person that has an interest or is harmed by the enforcement procedure may challenge such procedure. Thus, such party may invoke any irregularity of the enforcement procedure or the acts and deeds of the enforcement officer against the enforcement of an award. However, the debtor under the award cannot invoke “any factual or legal grounds that the debtor could have invoked in the course of the trial at first instance or in an appeal that was available to the debtor” to resist the enforcement.

g. Which court to go to for setting aside?

The setting aside of an arbitral award is decided by the Court of Appeal in whose district the arbitration took place.

h. Formal requirements before court can grant setting aside

Although not expressly provided, the request for setting aside should identify the parties, indicate the arbitral award under challenge, and contain the setting-aside grounds invoked and the signature of the party filing the request. In addition, the challenged arbitral award must be submitted to the court either in original or a certified copy. If not in Romanian, it must be accompanied by a notarised translation.

i. Do courts grant stay on enforcement as an interim measure?

The Court of Appeal has the power to stay the enforcement of the arbitral award against which the action for setting aside has been brought.

In addition, the interested party may request the stay of the enforcement of the arbitral award within the enforcement procedure in case a challenge to enforcement is filed. To obtain the stay of enforcement the party must show “good reasons” and must pay a security determined subject to the value of the challenge to enforcement.

j. What is the appellate mechanism against the decision of the court of first instance?

The court of first instance decision on a setting-aside request may be challenged by means of a second appeal (in Romanian, recurs).

Part III: enforcing foreign awards

6. New York Convention applicability

Romania is a signatory state to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (New York Convention). Thus, the New York Convention shall be applied if the foreign arbitral award was rendered in another signatory state, except that provisions of the Civil Procedure Code that are more favourable shall prevail.

7. Timelines for enforcement

There are two procedures that must be considered in relation to a foreign arbitral award: (i) the recognition and enforcement of the foreign arbitral award under the New York Convention and Articles 1124–1133 of the Civil Procedure Code regulating the effects of foreign arbitral awards; and (ii) the actual enforcement procedure carried out by the enforcement officer in accordance with Book V–About Enforcement of the Civil Procedure Code.

Thus, a party intending to enforce a foreign arbitral award in Romania must first file a request for recognition and enforcement of that award in Romania. Subsequently, if such recognition and enforcement of the award is granted, the party must initiate the enforcement proceedings through the enforcement officer.

8. Which court to go to? Relation with location of assets?

The application for recognition and enforcement of a foreign arbitral award shall be made to the court within whose jurisdiction the domicile or, where applicable, the seat of the person against whom the arbitral award is sought is located. If it is not possible to determine such court, the application shall be filed with the Bucharest Tribunal.

Regarding the actual enforcement proceedings through the enforcement officer, the enforcement officer that has jurisdiction is determined as follows:

• For immovable goods, the jurisdiction lies with an enforcement officer located within the Court of Appeal’s district where the immovable good is located.
• For movable goods, the jurisdiction lies with an enforcement officer located within the Court of Appeal’s district where the debtor is domiciled or has its seat, or where the goods are located. Where the debtor is domiciled or has its seat abroad, any enforcement officer shall have jurisdiction.
• For enforcement of obligations to do and not to do, the jurisdiction lies with an enforcement officer located within the Court of Appeal’s district where the enforcement is to be carried out.

9. Can non-parties resist enforcement?

Yes. A person that has an interest or is harmed by the enforcement procedure may challenge such procedure.

10. Compelling disclosure of local assets? How to identify assets available for enforcement?

The enforcement officer has the right to identify the debtor’s assets available for enforcement.

11. Are third-party funded awards enforceable?

Yes, third-party funded awards are enforceable. There is no distinction or interdiction provided by the law.

12. What interim reliefs are available pending enforcement of awards? Which of those reliefs are granted ex parte?

Prior to obtaining the recognition and enforcement of the foreign arbitral award in Romania, the creditor does not have an enforceable deed in Romania. But, as per the law, the foreign arbitral award has probative force in Romania in relation to the factual situations found. Considering these circumstances, the creditor could potentially pursue the interim reliefs regulated under the Civil Procedure Code, such as the procedure for a seizure order (in Romanian. sechestru asigurator), the procedure for an attachment order (in Romanian, poprirea asiguratorie), the procedure for a judicial seizure (in Romanian. sechestru judiciar), or an emergency order procedure (in Romanian, ordonanta presedintiala). Nonetheless, there is a matter of jurisdiction that must also be considered, as it is possible for the Romanian court to consider that it does not have jurisdiction due to the existence of the arbitration agreement concluded between the parties. The seizure order and the attachment order are judged without summonsing the parties.

After recognition and enforcement of the foreign arbitral award are granted, the creditor shall have an enforcement deed and shall be able to pursue the enforcement through the enforcement officer and no such interim reliefs would be necessary.

13. Formal requirements for enforcement application: what documents need to be filed in court?

The application for recognition and enforcement of the foreign arbitral award must be accompanied by the original award, or a copy, and the arbitration agreement. If these are not in Romanian, a certified translation into Romanian must also be filed.

For the actual enforcement of a foreign arbitral award, the creditor shall have to file the award and the court’s decision for recognition and enforcement of said award, in original or a certified copy, as well as translated into Romanian, if needed.

14. Enforcing awards that have been annulled/set aside at other courts. Enforcing when an annulment application is pending at a foreign court.

A foreign arbitral award that has been set aside by a competent authority in the state in which, or under the law of which, it was rendered may not be recognised and enforced in Romania.

A foreign arbitral award may still be recognised and enforced in Romania even if an application for setting aside is pending in a foreign court. However, the Romanian court may suspend the proceedings for the recognition and enforcement of the foreign arbitral award if its setting aside or suspension is requested to the competent authority of the state where it was rendered or of the state under whose law it was rendered. In this case, at the request of the party seeking recognition and enforcement of the award, the Romanian court may order the other party to provide a security.

15. Once application for enforcement is allowed, how does the actual enforcement against assets work? What are the remedies available for tracing assets during enforcement proceedings including for assets disposed of by fraud?

The actual enforcement shall be carried out following the general regulation of the enforcement. It shall be initiated based on a request filed by the creditor to the enforcement officer who has jurisdiction, which shall contain, inter alia, information about the good(s) or service(s) owed to the creditor and identification of the method of enforcement sought, and which shall attach, inter alia, the original or a certified copy of the enforcement deed (in Romanian, titlu executoriu).

Following the registration of the request for enforcement, the enforcement officer shall make an application for obtaining a declaration of enforceability from the enforcement court that has jurisdiction. Such application shall be decided within a maximum of seven days of its registration with the court, by a decision given in chambers, without summonsing the parties. The decision shall be notified immediately to the enforcement officer and to the creditor.

The declaration of enforceability granted by the court has effect throughout Romania and extends to the enforceable titles to be issued by the enforcement officer within the framework of the enforcement procedure declared enforceable. If the declaration of enforceability is granted, the court decision shall not be subject to any appeal, but it may be contested with the challenge to enforcement procedure regulated by law. If the declaration of enforceability is denied, only the creditor can appeal it.

After the granting of the declaration of enforceability, the enforcement officer shall inform the debtor and summon it to fulfil its obligation immediately or within the time allowed by law. If the debtor does not comply, the enforcement officer shall continue the enforcement procedure through the means selected by the creditor, which may include, but are not limited to, seizure of the debtor’s movable goods, seizure of the debtor’s money and securities, pursuing the fruits and revenues of immovable goods, or seizure of the debtor’s immovable goods, etc.

As mentioned above, the enforcement officer has the right to identify the debtor’s assets available for enforcement.

16. What is the procedure for repatriation of sums awarded after obtaining an order for enforcement?

If there is only one pursuing creditor, after deduction of the costs of enforcement, where applicable, the amount of money realised through enforcement shall be released to the creditor until its receivables have been met in full.

17. Do courts grant orders for security for costs?

A security for costs could, in principle, be pursued prior to obtaining an enforceable deed. During the actual enforcement of the foreign arbitral award, all aspects regarding the enforcement shall be governed by Book V–About Enforcement of the Civil Procedure Code.

18. Exchange control regulations: do they affect payments to foreign award holders?

No.

19. Enforcing awards from non-New York Convention places

The recognition and enforcement of foreign arbitral awards from non-New York Convention places is similar to those from a New York Convention state, considering that the provisions of the Civil Procedure Code are similar to the ones from the New York Convention.

20. Enforcing against sovereigns

Romania is a signatory to the European Convention on International Commercial Arbitration (1961) (the Geneva Convention), as well as to other treaties and bilateral agreements that recognise that legal persons of public law may resort to arbitration. As such, the enforcement of foreign arbitral awards against such legal persons of public law may be sought and obtained.

21. Appellate mechanism available?

The decision on the recognition and enforcement of a foreign arbitral award may be challenged by means of appeal (in Romanian, apel).

Under the actual enforcement there are various appellate mechanisms in force, depending, among other things, on the method of enforcement to be implemented. The main one is the challenge to enforcement.

Part IV: enforcing domestic awards

22. Timelines for enforcement

The law provides expressly that the Romanian arbitral award represents an enforceable deed and that it shall be enforced in the same way as a court judgment.

Thus, the party seeking the enforcement of a Romanian arbitral award must initiate the enforcement proceedings through the enforcement officer as regulated by Book V–About Enforcement of the Civil Procedure Code.

23. Which court to go to? Relation with location of assets?

The enforcement of Romanian arbitral awards is made through the enforcement officer. As described at question III(8) above, the enforcement officer that has jurisdiction is determined as follows:

• For immovable goods, the jurisdiction lies with an enforcement officer located within the Court of Appeal’s district where the immovable good is located.
• For movable goods, the jurisdiction lies with an enforcement officer located within the Court of Appeal’s district where the debtor is domiciled or has its seat, or where the goods are located. Where the debtor is domiciled or has its seat abroad, any enforcement officer shall have jurisdiction.
• For enforcement of obligations to do and not to do, the jurisdiction lies with an enforcement officer located within the Court of Appeal’s district where the enforcement is to be carried out.

24. Compelling disclosure of local assets? How to identify assets available for enforcement?

The enforcement officer has the right to identify the debtor’s assets available for enforcement.

25. Are third-party funded awards enforceable?

Yes, third-party funded awards are enforceable. There is no distinction or interdiction provided by law.

26. What interim reliefs are available pending enforcement of awards? Which of those reliefs are granted ex parte?

As the Romanian arbitral award is an enforcement deed, enforcement can be pursued through the enforcement officer and no such interim reliefs would be necessary.

27. Formal requirements for enforcement application: what documents need to be filed in court?

For the enforcement of the Romanian arbitral award, the creditor shall have to file the enforcement deed, namely the award itself.

28. Filing for enforcement when application for annulment is pending

The filing of a setting-aside request does not automatically stay the enforcement of the respective award. But the Court of Appeal has the power to stay the enforcement of the arbitral award against which the action for setting aside has been brought. If no such stay is granted by the Court of Appeal, the enforcement procedure may be pursued.

29. Once application for enforcement is allowed, how does the actual enforcement against assets work? What are the remedies available for tracing assets during enforcement proceedings including for assets disposed of by fraud?

Please see the answer to question III(15) above.

30. Do courts grant orders for security for costs?

Please see the answer to question III(17) above.

31. Appellate mechanism available?

The Civil Procedure Code regulates various appellate mechanisms that may be applied, depending, among other things, on the method of enforcement to be implemented. The main one is the challenge to enforcement.