From Award to Enforcement: Key Considerations When Enforcing International Arbitration Awards in Malta

International arbitration has long become the preferred method of resolving cross-border commercial disputes, offering parties a neutral, flexible, and internationally recognised forum for dispute resolution. However, securing a favourable arbitral award is only part of the process.

The true value of an arbitral award lies in its ability to be recognised and effectively enforced against the assets of the losing party. Without enforcement, even the most favourable award may offer little practical benefit.

Indeed, the ease with which an award can ultimately be converted into recoverable assets is often one of the key considerations for parties choosing arbitration as their preferred dispute resolution mechanism.

For businesses operating across jurisdictions, a clear understanding of the enforcement process is therefore crucial. Malta, as a pro-arbitration jurisdiction and a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, provides a robust legal framework for the recognition and enforcement of international arbitral awards.

Registration of an International Arbitration Award under Maltese Law

According to the Maltese Arbitration Act (Chapter 387 of the Laws of Malta), foreign arbitration awards may, upon registration with the Malta Arbitration Centre, be enforced by the Maltese courts in the same manner as a domestic arbitral award issued under the Act.

An applicant seeking the registration of a foreign arbitral award is required to submit the following documents to the Registrar:

• The original award or a duly certified copy thereof;
• A certified translation of the award where it is not in the English language;
• The original arbitration agreement between the parties;
• A sworn declaration confirming that no recourse against the award has been taken or remains pending, and that the award is final and binding;
• The respondent’s particulars, including name, address, and any other known contact details, together with details as to whether the respondent resides in or is otherwise present in Malta.

Once the application and supporting documentation have been filed, the Registrar of the Malta Arbitration Centre serves the respondent with copies of the documents submitted. The respondent is then granted ten working days within which to indicate, in writing, any reasons why the award should not be registered.

Following receipt of the respondent’s submissions, if any, the Registrar refers the application and any response to the Chairman of the Malta Arbitration Centre for determination.

Provided that the application complies with the requirements of the Arbitration Act and the Arbitration Rules (S.L. 387.01), and the respondent has been duly notified, whether directly or through a curator ad litem, recognition of a foreign arbitral award may only be refused on limited grounds. These include:

• The arbitration agreement is invalid under the law chosen by the parties or under the law of the country where the award was rendered;
• The party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or was otherwise unable to present its case;
• The award deals with matters that fall outside the scope of the arbitration agreement or submission to arbitration;
• The composition of the arbitral authority was not in accordance with agreement of the parties;
• The award has not yet become binding on the parties;
• The subject matter of the dispute is not capable of settlement by arbitration under Maltese law; or
• The recognition or enforcement of the award would be contrary to Maltese public policy.

Any party dissatisfied with the Chairman’s decision may challenge that determination before the Maltese Court of Appeal.

Once successfully registered, the foreign arbitral award constitutes an executive title under the Arbitration Act and may be enforced through the appropriate executive warrants and enforcement mechanisms available under Maltese law.

How can we assist?

InariLaw provides specialised representation in international arbitration, including the recognition and enforcement of foreign arbitral awards in Malta.

Our team has successfully assisted clients in the recognition and enforcement of international arbitral awards, including an award issued against the State of Libya.[1] Following the registration of the foreign award with the Malta Arbitration Centre, the State of Libya appealed the Chairman’s decision, arguing that it had not been properly served with the application for registration. The Maltese Court of Appeal rejected this argument after confirming that valid service had been effected through the Embassy of the State of Libya in Malta.

Following the successful registration of the award, InariLaw further assisted in the enforcement proceedings, ultimately securing the recovery of funds deposited in court in the name of the State of Libya. During those proceedings, the respondent raised a number of objections, including arguments that the funds enjoyed diplomatic immunity and were therefore not susceptible to enforcement.

The interplay between the enforcement of arbitral awards and claims of diplomatic or sovereign immunity raises important legal considerations, which we will explore in a separate article.

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[1]  Dr Jonathan Thompson pro et noe vs Suhail M.A. Altreki in his capacity as Chargé d’Affaires of the State of Libya in Malta, Court of Appeal (Superior Jurisdiction), dated 14 March 2024