Serbia

Part I: what can be enforced?

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

The concept of what constitutes an arbitral “award” that can be enforced is governed by the Law on Arbitration and Law on Enforcement and Security. An arbitral award is a decision of an arbitral tribunal about the dispute by which it decides on all the requests of the parties (final and binding arbitral award). Both domestic and foreign arbitral awards can be the subject of enforcement proceedings.

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

the original arbitral award or a certified copy by a public notary and/or apostille

the arbitration agreement or a document of its acceptance in the original or a certified copy thereof

a certified translation of the foreign arbitral award and the arbitration agreement into the Serbian language by an official court translator in Serbia

a certificate from the arbitration court or another authority confirming the finality of the award

3. Orders on interim measures: enforceability

a. Domestic awards

Orders on interim measures on domestic awards are enforceable in Serbia. Before the domestic courts, requests for interim measures can be submitted before, during or after the arbitration proceedings, as opposed to submitting a request for interim measures before an arbitration court where this is possible only before or after the arbitration proceedings. In cases before the Permanent Arbitration at the Chamber of Commerce and Industry of Serbia, arbitrators may order interim measures, but not ex parte.

b. International commercial arbitration awards

Orders on interim measures of international commercial arbitration awards are not enforceable in Serbia.

4. Emergency awards: enforceability

a. Domestic awards

b. International commercial arbitration awards

There is no concept of emergency arbitration in Serbian legislation.

Part II: resisting enforcement

If a foreign arbitral award is to be enforced, prior recognition of that award is necessary.

5 a. How are awards set aside?

In accordance with the Law on Arbitration, a lawsuit for setting aside can be filed against a domestic arbitral award for the following reasons: invalid arbitration agreement; due process violations; excess of authority; arbitration procedure composition; false documents and actions; binding and finality of award; and public policy matters.

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

Yes, if:

The parties to the agreement were, under the law applicable to them, under some incapacity, or that the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made.

The party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was otherwise unable to present their case.

The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration or contains decisions on matters beyond the scope of the submission to arbitration; however, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognised and enforced.

The composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, 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 that country.

The recognition or enforcement of the award would be contrary to the public policy of that country.

c. Can non-parties seek annulment?

No.

d. Grounds to seek setting aside

The arbitration agreement is not valid according to the law agreed upon by the parties or according to the law of Serbia if the parties have not agreed otherwise.

The party against whom the arbitral award was made was not properly informed about the appointment of the arbitrator or about the arbitration procedure or for some other reason could not present its views.

A dispute that was not covered by the arbitration agreement was resolved by an arbitration decision, or the decision exceeded the limits of that agreement. If it is determined that the part of the decision that exceeded the limits of the arbitration agreement can be separated from the rest of the decision, only that part of the decision can be terminated.

The composition of the arbitration court or the arbitration procedure was not in accordance with the agreement on arbitration, that is, with the rules of the permanent arbitration institution entrusted with the organisation of the arbitration, unless that agreement contradicts a provision of the Law on Arbitration, the application of which the parties cannot deviate from, or, if there is no such agreement, that the composition of the arbitration court or the arbitration procedure was not in accordance with the provisions of the Law on Arbitration.

The arbitration decision is based on the false testimony of a witness or an expert or is based on a falsified document or the decision was made because of a criminal act by the arbitrator or a party, if these reasons are proven by a final judgment.

e. Timelines to seek setting aside

The timeline/statute limit for seeking setting aside (annulment) of an arbitral award is governed by the Law on Arbitration. A lawsuit for annulment of the arbitral award may be filed within three months of the day the party received the arbitral award. If the party submitted a request for correction, interpretation or amendment of the decision, the action for annulment can be filed within three months from the day when the decision on these requests was delivered to the parties.

f. Grounds to resist enforcement

invalid arbitration agreement

lack of proper notice or inability to present case

excess of authority

non-compliance

award is not binding

g. Which court to go to for setting aside?

The commercial court with local jurisdiction according to the seat of arbitration.

h. Formal requirements before court can grant setting aside

The party seeking to set aside the arbitral award must file a lawsuit with the competent court within three months from the date of receipt of the award.

A lawsuit for setting aside the arbitral award must be filed with the competent court–a lawsuit for annulment can only be filed against a domestic arbitral award. A foreign arbitral award needs to first be recognised by the domestic competent court. A domestic arbitral award is an award rendered in either domestic or foreign arbitration within Serbia. The court of the seat of arbitration has territorial jurisdiction to decide on an action for annulment. This ensures that the application is submitted to the appropriate judicial authority with jurisdiction over arbitration-related matters.

The party challenging the arbitral award must specify the grounds for setting aside the award in their application.

The application must be prepared and submitted in accordance with the procedural requirements.

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

Yes.

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

Parties have the right to appeal against the decision of the court of first instance regarding the annulment of an arbitral award. Appeals against decisions made by the competent court in the context of arbitration are typically filed with the competent appellate court.

Part III: enforcing foreign awards

6. New York Convention applicability

Serbia has ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (New York Convention), committing to its principles and obligations. It came into force in Serbia on 27 April 1982. Its provisions are incorporated into the Law on Arbitration, which provides the domestic legal framework.

7. Timelines for enforcement

Claims established by a final court decision or decision of another competent authority, or by a settlement before a court or other competent authority, become statute-barred after 10 years.

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

Depending on the party who is seeking enforcement, competent courts can be basic or commercial courts.

9. Can non-parties resist enforcement?

Non-parties have limited grounds to resist the enforcement of foreign arbitral awards. These grounds typically relate to issues of consent, public policy, procedural irregularities, or fraud.

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

Public open sources:

Real Estate Registry

Business Registers Agency

Vehicle Registry

Intellectual Property Office

bank account information (only for companies)

11. Are third-party funded awards enforceable?

Third party-funded awards are enforceable.

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

inventory of movable assets and registration of the right of pledge on inventoried movable assets in the Pledge Register

attachment of a monetary claim of the enforcement debtor and acquiring the right of pledge over it

order to the organisation for enforced collection to transfer the monetary funds in the amount of the secured claim to the deposit of the public enforcement officer

registration of a ban on disposal of financial instruments and registration of the right of pledge over them in the Central Securities Depository

registration of the right of pledge of the enforcement creditor against the stake of the enforcement debtor in a limited liability company, partnership company, or limited partnership into the Pledge Register and registration of attachment of stake in the Register of Companies

attachment of claim of the enforcement debtor to have the immovable property or a specific movable asset surrendered to them, or to have a certain amount of movable assets delivered to them, and the acquiring of the right of pledge over the attached claim

pre notation of the right of pledge on immovable property owned by the enforcement debtor, or on the right of the enforcement debtor registered against the immovable property

The court may rule on the motion for security interest prior to serving it on the enforcement debtor and enabling them to declare their position (ex parte):

if the enforcement creditor, due to the delay, could suffer irreparable damage or damage that would be hard to repair

to avoid immediate danger of unlawful damage to the asset or loss or serious endangering of a right

to prevent violence

The court considers and establishes only the facts that the parties have presented and examines only the evidence proposed by the parties, unless the coercive regulation is applied.

Interim measures for securing monetary claims:

The debtor is prohibited from disposing of or encumbering movable property that they own and, if necessary, such property is seized from the debtor and entrusted to the creditor or another person or deposited in a court deposit.

The debtor is prohibited from disposing of or encumbering immovable property that they own, or other real rights registered in their favour on the immovable property in the real estate cadastre, with a note of the prohibition registered in the real estate cadastre.

The debtor’s debtor is prohibited from paying the claim or delivering the item to the debtor and the debtor is prohibited from receiving payment of the claim or receiving the item and disposing of them.

An order is made to the organisation for enforced collection to transfer funds in the amount of the secured claim to the deposit of the public bailiff.

An order is made to the Central Securities Registry to register a prohibition on the disposal and encumbrance of the debtor’s shares and to register a prohibition on the debtor using voting rights from the shares and disposing of them.

Seizure of cash or securities from the debtor and their deposit in a court deposit or with a public bailiff.

Interim measures for securing non-monetary claims:

The debtor is prohibited from disposing of or encumbering movable property that is the subject of the creditor’s claim and, if necessary, such property is seized from the debtor and entrusted to the creditor or another person or deposited in a court deposit.

The debtor is prohibited from disposing of or encumbering immovable property that is the subject of the creditor’s claim, with a note of the prohibition registered in the real estate cadastre.

The debtor is prohibited from taking actions that could harm the creditor and from changing the item that is the subject of the creditor’s claim.

The debtor’s debtor is prohibited from delivering the item that is the subject of the creditor’s claim to the debtor.

An order is made to the Central Securities Registry to register a prohibition on the disposal and encumbrance of shares that are the subject of the creditor’s claim and to register a prohibition on the debtor using voting rights from the shares and disposing of them.

An order is made to the debtor to take actions necessary to preserve the immovable or movable property and prevent its physical alteration, damage, or destruction.

Temporary arrangement of the disputed relationship, if necessary, to eliminate the risk of violence or greater irreparable harm.

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

The proposal for enforcement specifies the identification details of the enforcing creditor and the debtor, the enforceable instrument, the creditor’s claim, one or more means or subjects of enforcement, or a request for enforcement on the entire property of the debtor, and other necessary details for carrying out the enforcement. The enforceable instrument must be attached to the proposal for enforcement in the original, a certified copy, or a transcript, along with other documents as prescribed by law, providing the enforceable instrument contains a certificate of enforceability.

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

The court before which the recognition and enforcement of a foreign arbitral award is sought may postpone the adoption of its decision if proceedings for the annulment or suspension of the execution of that decision have been initiated in the country in which the decision was made or under whose law it was made, until the end of that procedure. The court before which the recognition and enforcement of a foreign arbitral award is sought may, at the request of a party, condition the adoption of a decision on the postponement of the recognition and enforcement procedure by the submission of appropriate security by the opposing party.

If an application to set aside an arbitral award is pending in a foreign court, Serbian courts have discretionary power to either stay the enforcement proceedings or proceed with enforcement.

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?

Once the court issues the enforcement resolution, it is directed by court to public executors (bailiffs), who are responsible for executing the order. Public enforcement officers locate and seize the debtor’s assets. These assets can include bank accounts, immovable property, movable property, shares, and other valuables.

The enforcement of a monetary claim on immovable property is carried out by recording the decision on enforcement in the immovable property cadastre, assessing the value of the immovable property, selling the immovable property, and settling the enforcement creditor from the sale price. The public enforcement officer can only order a sale at a public auction.

The enforcement of monetary claims on movable property is carried out by inventorying and evaluating the property, selling the property, and settling the enforcement creditor from the sale price. Items can be sold by oral public bidding or direct bargaining.

Execution on wages/salary: execution of the monetary claim on the enforceable debtor is carried out by seizure/transfer of claims to satisfy the enforceable creditor.

Execution for the satisfaction of a monetary claim against a debtor who is a legal entity, entrepreneur, or individual engaged in business activities is carried out by the enforcement organisation on all dinar and foreign currency funds in the debtor’s accounts. In the enforcement order, the enforcement organisation is instructed to order the banks to block the debtor’s accounts and transfer the funds to the creditor’s account up to the amount of the creditor’s claim.

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

Court-appointed enforcement officers (bailiffs) carry out the enforcement order. They can take various actions to ensure repatriation of sums.

The enforcing creditor has the right to order the National Bank of Serbia to instruct banks to freeze the accounts of the debtor and transfer the funds to the account of the enforcing creditor in the amount of their claim.

Once the enforcement action is successful, the seized funds are transferred to the creditor’s account.

17. Do courts grant orders for security for costs?

The courts may grant orders for security for costs in the context of enforcing arbitral awards.

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

In the context of payments to foreign arbitral award holders, exchange control regulations can indeed affect the process and timing of such payments.

19. Enforcing awards from non-New York Convention places

Contractual reciprocity

The procedure and conditions for recognition and enforcement of foreign court decisions are regulated by the Law on Resolving Conflict of Laws with the Regulations of Other Countries, as well as by bilateral agreements governing this matter. The law stipulates that the existence of reciprocity concerning the recognition of a foreign court decision is presumed until proven otherwise, and in case of doubt about the existence of such reciprocity, clarification is provided by the ministry responsible for judicial affairs.

De facto reciprocity

For countries where diplomatic reciprocity has not been established, reciprocity is granted based on the legal regulations of the respective country governing this matter or the existence of de facto reciprocity. In such cases, a request must be submitted to the Ministry of Justice, specifically to the Department for International Legal Assistance.

Award is not enforceable

If the arbitral award does not meet one of the two previous grounds, the arbitral award is not enforceable.

20. Enforcing against sovereigns

The procedure for enforcing against sovereigns is carried out in the same manner as for individuals or legal entities, without any additional obligatory steps.

21. Appellate mechanism available?

The executing debtor is obliged to state in the appeal the reasons for contesting the enforcement decision, the facts, and evidence supporting the reasons for contesting the enforcement decision, and to submit all written evidence referred to in the appeal. Otherwise, the appeal is dismissed by decision as incomplete, without prior return for supplementation. The appeal is submitted to the court of first instance that issued the enforcement decision. The court of first instance forwards the appeal, response to the appeal, and case files to the appellate court on the next working day after receiving the response to the appeal or the expiration of the deadline for responding to the appeal.

Part IV: enforcing domestic awards

General comments

The above procedure for international arbitration awards is applicable and the same for domestic awards, in a simpler form, because there is no need to pass the procedure of recognition.

22. Timelines for enforcement

Ten years.

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

The competent court shall be the one where the resolution on enforcement is issued.

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

In Serbia, compelling the disclosure of local assets and identifying assets available for enforcement is governed by several legal provisions under the Law on Enforcement and Security and related regulations. Public open sources exist to determine enforceable assets.

25. Are third-party funded awards enforceable?

Yes.

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

The types of preliminary measures are as follows, when the arbitration award is rendered but still not enforced: