The applicable laws are the LCIA, and the CPC, Articles 454 to 501.

The applicable law for recognition and enforcement of foreign arbitral awards in Iran is the Law concerning the accession of Iran to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 2001 (“NY Convention”).

Yes. The NY Convention entered into force with respect to Iran on March 2, 2002.  Iran has made a commercial reservation and a reciprocity reservation. It will apply the Convention only to differences arising out of legal relationships, whether contractual or not, which are considered as commercial under the national law of Iran. Furthermore, Iran will apply the Convention, on the basis of reciprocity, to the recognition and enforcement of only those awards which were made in the territory of another contracting party to the NY Convention.

Based on Articles 6 and 35 of the LICA, the competent court is the one which has inherent jurisdiction over the subject matter of the dispute in the absence of an arbitration agreement. In another words, the competent court for the enforcement of a foreign award is the same court that would have possessed subject-matter jurisdiction over the merits of the dispute, had arbitration not occurred and had the claim been filed directly before the court.

For the enforcement of domestic awards, based on the CPC, the Public Court (civil) where the award-debtor or its assets are located has jurisdiction.

The first step to initiate enforcement of an award is the submission of a request titled “petition for enforcement of an arbitration award”. Along with this request, the official translation of the award as well as the arbitration agreement (if it is separate from the contract) and the contract (if it contains the arbitration agreement) must be submitted.

A significant exception to the general jurisdictional rules applies when the subject of the dispute is immovable property located in Iran. In such cases, the competent court to handle the enforcement of the award is the court in the jurisdiction where the immovable property is located.

Otherwise, no special jurisdictional requirements apply. The applicant also does not have to identify assets when applying for recognition and enforcement of a foreign award in Iran.

In Iran, the court fees for the enforcement of domestic and foreign awards are primarily determined based on the amount in dispute. For domestic awards, court fees for the enforcement are calculated as a percentage of the claimed amount. Currently, pursuant to Article 3 of the Law on Collection of Certain Government Revenues and Their Allocation to Specific Expenditures, enacted in 1994 (amended in 2004), the fee is 3.5% of the amount in dispute. This fee is payable at the time of filing the enforcement request.

The same court fee applies with respect to enforcement of foreign awards, i.e., a percentage (around 3.5%) of the monetary value sought.

If the award does not involve a specific monetary amount (e.g., declaratory relief), the court may assign a nominal or estimated value for fee calculation purposes.

The general rule, according to the CPC, is that the losing party is obliged to pay the court costs and other related costs. These costs include court fees, attorney’s fees (if claimed), translation or expert costs (if incurred during enforcement), as well as notification and execution costs. If the arbitration agreement or applicable arbitration rules explicitly allocate costs, Iranian courts will generally follow such rules found in the arbitration agreement and also apply that allocation to court fees, provided it does not contradict public policy.

The proceeding for the recognition and enforcement of domestic and foreign awards in Iran is adversarial. With respect to enforcement of domestic awards, according to Iran’s CPC, the party seeking enforcement files a request before the competent court. The court – if the documents are complete – summons the opposing party. The court then conducts a hearing, permitting both parties to submit arguments and evidence.

The same applies to the procedure for the recognition and enforcement of foreign awards.

The party applying for recognition and enforcement must provide the court with the authenticated original award or a certified copy, and the original arbitration agreement or a certified copy.

If the award or the arbitration agreement is not in Persian, the party seeking enforcement must provide a certified translation of these documents.

Iranian law does not explicitly require that parties be represented by Iranian lawyers. However, practical considerations suggest otherwise. It is highly advisable to retain an Iranian lawyer.

In Iran, service of judicial and extrajudicial documents — such as court notices, pleadings, judgments, and other related documents — is governed by specific procedural rules under the CPC and executive regulations issued by the judiciary (Dadgostari).

The legal framework for domestic service of judicial documents is contained in Articles 67 to 83 and executive regulations issued by the judiciary (Dadgostari). Service is deemed legally effected when the notice or document is personally delivered to the addressee or their legal representative. If the addressee is absent, it may be served to an adult family member, employee, or guard, provided they are not legally incompetent (Article 69 CPC). If no one is present, the notice is posted on the door, and a report is filed (Article 70 to 71 CPC). In case of corporations or legal entities, documents are served at the registered office or to a legal representative.

Service is effected by official process servers of the court (daftar-e dadgostari). Service includes signed confirmation by the recipient or a report by the process server. Once proper service is effected, deadlines (e.g., appeals, objections) begin to run. If service was defective, any resulting decisions may be voidable.

There is no specific treaty with many countries in this regard. Iran is not a party to the Hague Service Convention. Thus, Articles 300 to 302 CPC and Iranian private international law principles apply.

The court coordinates with the Ministry of Foreign Affairs, and Iranian embassies or consulates in the target country. The documents are transmitted through diplomatic channels. Service is effected by Iranian diplomatic missions, if permitted by the host country. When the Iranian consulate certifies delivery or when proof of receipt is returned via mail or courier, the court must be satisfied that the party received notice with sufficient time to respond.

Domestic arbitral awards are governed by the CPC, while foreign awards are subject to the NY Convention and LICA.

Domestic awards do not require a separate recognition process before enforcement. In contrast, foreign awards must first be recognized by an Iranian court before they can be enforced. Domestic awards rendered in Persian require no translation. Foreign awards must be accompanied by certified translations of both the award and the arbitration agreement into Persian. Enforcement of domestic awards may be refused if the award violates the CPC (e.g., due process issues, jurisdictional problems). Enforcement of foreign awards may be refused exclusively under the grounds listed in Article V of the NY Convention.

Iranian courts enforce awards in situations where the award fully disposes of the entire dispute, and the award is binding and enforceable (with no further decisions expected). Partial awards are only enforceable if they are “final on the resolved issues”. In practice, the court will look at the substance of the award to see if it was intended to be a final and binding resolution of that particular issue, rather than just look at how it is labelled.

With respect to domestic awards, Iranian courts have broader authority to review both procedural and substantive issues. For instance, they may investigate whether the arbitrator correctly applied the law. In contrast, foreign awards are subject to judicial review only under the grounds found in Article V of the NY Convention.

Both domestic and foreign awards may be refused enforcement if they violate Iranian public order or good morals. Iranian law for instance, as many other jurisdictions, prohibits arbitration in certain areas (such as criminal or family law). If the subject matter of the dispute is not arbitrable under Iranian law, courts will refuse to enforce both domestic and foreign awards.

Public policy is a major ground under Iranian law, which courts can invoke to refuse recognition and enforcement of foreign awards. Courts focus in this respect on serious conflicts with rules of Iran’s Constitution, and essential moral, political and economic values that protect public goods. Commercial disputes are generally not considered public policy issues unless they impact sensitive areas such as riba, i.e. interest-bearing contracts violating Islamic finance principles, or illegal trade, fraud, contracts concerning alcohol, gambling or other activities viewed as immoral. The Sharia is binding under Iran’s constitution, Article 4. Therefore, gambling and riba contracts are null and void and Iranian courts do not recognize and enforce awards relating to these matters.

A notable example illustrating how Iranian courts apply the public policy exception is the case of Bazargani Petroshimi Corporation v Bazargani Karavaran Corporation, decided by the Civil Court, Sadr Judicial Complex, Tehran, Chamber 36, on January 16, 2019 (Decision No. 9709972160101240). The case related to the enforcement of a French award in Iran. The Iranian court granted enforcement of the foreign award but refused to enforce the portion of the award that ordered the Iranian party to pay interest. The court held that enforcing interest against an Iranian party violated the Constitution and laws of Iran, specifically Islamic principles that prohibit usury (riba). Therefore, enforcing the interest component of the award was deemed contrary to Iranian public policy.

When an Iranian court recognizes an award (whether domestic or foreign), the award acquires the status of an enforceable judgment. It has the same legal effect as a final court decision under Iranian law. The prevailing party may apply for compulsory enforcement of the award through the Iranian enforcement offices (Edareh-ye Ejra).

Yes, remedies may be available against a decision recognizing a foreign award in Iran, but they are limited and exceptional. Under the CPC, the following remedies may be available:

Appeal (فرجام‌خواهی): If the recognition decision meets certain criteria (such as exceeding the court’s jurisdiction or violating public order), it might be appealable to the Supreme Court.

Request for Retrial (اعاده دادرسی): In exceptional circumstances (e.g., discovery of fraud, fabrication of documents, or newly found decisive evidence), a party may request a retrial.

Third-Party Objection (اعتراض شخص ثالث): If a third party (not originally involved in the arbitration) believes the decision harms their legal rights, they can file an objection.

Iranian courts are cautious when allowing these remedies, especially when the case concerns a foreign award recognized under the NY Convention.

The same remedies as those listed in the previous question (18) may also be available against decisions refusing recognition and enforcement.

A party seeking to enforce an arbitration award in Iran is unlikely to be hindered by a set-off claim from the award debtor during the enforcement stage. While Iranian law recognizes the concept of a set-off as a valid means of offsetting a debt, it is considered a substantive defense that should be raised during the original arbitration proceedings – not at the time of enforcement.

Once an arbitral tribunal has rendered a final award, the enforcing court’s role is limited to a restricted review of the award.  An Iranian court will generally not review the substance of the dispute to entertain a set-off claim which was not raised, or was rejected during the arbitration.

Under Iranian law, if the award has been annulled or set aside at its seat, Iranian courts generally refuse recognition and enforcement of that award. This is based on Article 36 of LICA, which provides that recognition and enforcement may be refused if the award has been set aside or suspended by a competent authority at the place of arbitration. This corresponds to Article V(1)(e) of the NY Convention, with Iran following suit.

If the foreign court at the seat sets aside the award after recognition has taken place in Iran,
possible remedies in Iran include:

Motion for reconsideration (تقاضای اعاده دادرسی): The award-debtor may request reconsideration or appeal the recognition decision, arguing that the award has been annulled at the seat.

Appeal to higher courts: ( (تجدید نظرDepending on the court instance and timing, the party may file an appeal or request suspension of enforcement.

Interim measures are available and commonly used in Iran. These include attachments, freezing measures, and prohibition on disposal of assets. Such measures are issued by courts under the CPC.

Yes, under Article 35 (2) of the LICA, if the award-creditor seeks recognition and enforcement and the award-debtor opposes the award, the court may order the award-debtor to deposit a guarantee. Procedurally, the award-creditor must first request such guarantee.