Decision For Enforcement Of Arbitral Award Not Required For Preliminary Injunction

On April 19 2014 the Court of Appeals reversed a first-instance court decision rejecting a request for a preliminary injunction on the grounds that the party seeking the injunction did not have a final decision on enforcement of the arbitral award on which the request was based.¹

Facts

After obtaining an arbitral award from the Moscow Court of Arbitration, the claimant applied to the Turkish courts seeking enforcement of the award. The Turkish courts granted the enforcement on March 19 2013. However, the respondent appealed and precluded the enforcement decision from becoming final until the appeal proceedings were concluded.

While these proceedings were ongoing, the claimant applied to the first-instance court seeking a preliminary injunction on the grounds that its receivable was unsecured, and that the respondent had attempted to conceal its assets, had sold assets registered under its name to third parties and planned to sell the rest.