Kazakhstan achieved compulsory enforcement of the arbitral award in the dispute with the Italian construction company "Todini"

Kazakhstan achieved compulsory enforcement of the arbitral award in the dispute with the Italian construction company "Todini"

As previously reported, on June 11, 2019, the International Chamber of Commerce in Paris ruled in favor of the Republic of Kazakhstan in a dispute initiated by the construction company JV “Todini Impregilo Kazakhdorstroy”. The amount of the claims was US $ 20 million.

According to the award, the Claimant was to reimburse the Republic of Kazakhstan for the expenses incurred in the amount of USD 277,000.

In view of Todini's refusal to voluntarily execute the arbitral award, the Ministry of Justice took a set of measures to have the arbitral award recognized in the territory of the Republic of Kazakhstan and enforced.

At the first stage, guided by Article 503 of the Civil Procedure Code of the Republic of Kazakhstan, the Ministry of Justice submitted a petition to the Specialized Interdistrict Economic Court (SIEC) of the city of Nur-Sultan for the recognition and enforcement of the arbitral award. In accordance with the requirements of the civil procedural legislation, the necessary materials were collected, the original of the arbitral award and corporate documents on the joint venture were translated into the language of legal proceedings.

The Ministry of Justice convinced the court of the correctness of its claims, and as a result, the Court upheld the claims of the Ministry of Justice in full. Subsequently, “Todini” attempted to revoke the decision of the SIEC of the city of Nur-Sultan on appeal, but the Court of the city of Nur-Sultan denied the applicants their claims.

“Todini”, as it had done following the results of the arbitration dispute, did not voluntarily comply with the judicial acts that had come into legal force, and therefore enforcement on the Court’s judgment was organized. As a result, 277,000 US dollars was recovered.

In this way, the Ministry of Justice has fully completed the work on protecting the interests of the state in arbitration and enforcing the arbitral award.