1 Background and Introduction
1.1 The Cypriot courts may grant injunctive relief if the following requirements are cumulatively satisfied by the applicant:
1.1.1 a serious issue arises in the foreign proceedings;
1.1.2 there is a probability that the applicant in the foreign proceedings is entitled to relief; and
1.1.3 it would be difficult or impossible to obtain justice at a later stage without granting such injunctive relief.
1.2 Following recent legislative amendments, the Cypriot courts have now extended powers to issue injunctive relief including, amongst others, freezing orders, in support of foreign legal proceedings.
2 Revisions in Detail
2.1 In particular, pursuant to rules 25.1 and 25.4 of the new civil procedure rules, which have been adopted as of 1st September 2023, a party may apply for injunctive relief:
2.1.1 at any time including before the filing of a claim;
2.1.2 after judgment has been given; and
2.1.3 in relation to proceedings which are taking place, or will take place, outside the jurisdiction.
2.2 Further, pursuant to the amendment of, amongst others, section 32 of the Courts of Justice Law (Law 14/1960), which took effect on 17 November 2023, the Cypriot courts may issue injunctive relief with respect to proceedings where:
2.2.1 the defendant is located within the jurisdiction;
2.2.2 the assets of the defendant are located within the jurisdiction; or
2.2.3 there is another link with Cyprus so as to render the Cypriot courts appropriate to hear an application for injunctive relief.
2.3 Prior to the aforesaid legislative amendments, the Cypriot courts had jurisdiction to issue free-standing injunctions only in aid of:
2.3.1 substantive proceedings pending before the courts of EU member states, pursuant to Regulation (EU) No 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters; or
2.3.2 international commercial arbitration, pursuant to section 9 of International Commercial Arbitration Law of 1987 (which is based on the 1985 UNCITRAL Model Law).
3 Conclusion
3.1 The new legislative framework constitutes a significant expansion of jurisdiction and a step towards adapting our legal system to the evolving nature of international transactions and the combating of international fraud. In particular, injunctive relief in the form of a “free-standing” injunction may now be sought by victims of international fraud schemes as a potent tool to secure assets and prevent dissipation within jurisdiction.
Key Contacts
For further information, please contact:
Andrea Psara
Partner
Tel: +357 24 01 01 12
andrea.psara@kaimakliotis.com