Realization and Termination of Arbitration and the Extent of Judicial Oversight in the Enforcement and Annulment of Arbitral Awards in Iranian Law

Abstract

The present study examines the realization and termination of arbitration and the extent of judicial oversight in the enforcement and annulment of arbitral awards in Iranian law. The main objective of this research is to conduct a comparative analysis of Iran’s legal system in the field of arbitration and to propose strategies for improving and enhancing existing mechanisms. The research adopts a theoretical approach, utilizing reasoning and rational analysis methods based on library studies. The prerequisites for the realization of arbitration include the mutual consent and agreement of the parties, the legal capacity to litigate, the arbitrability of the subject matter, the absence of legal prohibitions, and adherence to relative restrictions concerning the arbitrator. Failure to observe any of these prerequisites can lead to the termination of arbitration. Another segment of this study is dedicated to judicial oversight over arbitration. The scope and nature of court supervision regarding the arbitration process and the enforcement of arbitral awards in two jurisdictions are analyzed, identifying the strengths and weaknesses of each. The alignment of arbitral awards with public order principles, universally accepted as fundamental, necessitates a degree of judicial oversight. Despite the necessity of such oversight, considering the contractual nature of arbitration, judicial intervention must adhere to a specific framework and limitations to avoid conflicting with the parties' intention to refer disputes to a private forum and to exclude judicial authorities from the process. Judicial control is also exercised during the enforcement of arbitral awards. In practice, courts verify the arbitrator’s jurisdiction, the definition of the subject matter, the examination of the arbitral award, its alignment with the arbitration subject, and whether it has been issued within the prescribed timeframe and the arbitrator’s authority, before ordering its enforcement. Finally, the findings of this study indicate that Iran's legal system faces similar challenges in the field of arbitration and can benefit from the experiences of other jurisdictions to achieve efficiency and justice in the arbitration process.