International Law Review

International Law Review

Settlement of Cross-Border Bankruptcy Disputes through Arbitration

Document Type : academic

Authors
Omolbanin Ramzanzade Badeli, 1
Mohamad Hossein Taghipour Darzi Naghibi 2
Seyedeh Tahereh Mosavi Khatir 3
1 Assistant Professor of Private Law of the University of Mazandaran, Iran, Babolsar.
2 Assistant Professor of private Law of the University of Mazandaran, Iran, Babolsar.
3 PhD Student in Private Law, University of Mazandaran, Babolsar, Iran.
10.22066/cilamag.2024.2012984.2452
Abstract
In domestic law, when a merchant is unable to pay their debts and fulfill their financial obligations, they is declared bankrupt, and his assets are liquidated with special procedures. However, with the increasing globalization of trade and businesses often having assets spread across different countries, bankruptcy can have cross-border effects and dimensions. The resolution of disputes arising from cross-border bankruptcy is a significant issue in this context. Recruiting a descriptive-analytical method, this article examines the dispute resolution methods in this area, with an emphasis on arbitration, and the assumption that the arbitration agreement will remain in force even in the event of bankruptcy. Furthermore, the authors believe that the settlement of disputes arising from cross-border bankruptcy can also be achieved by concluding an arbitration agreement after the occurrence of bankruptcy. Arbitration, like other methods, has its advantages and disadvantages, and the article provides suggestions to address the challenges of this method.
Keywords
Dispute Resolution
Cross-Border Bankruptcy
Arbitration
Territorialism
Globalism

Subjects

  1. A: Farsi

    - The book

    1. Junidi, Laiya; Comparative review of international commercial arbitration law, Tehran, Faculty of Law and Political Sciences, University of Tehran, 1378.
    2. Shiravi, Abdul Hossein; International commercial arbitration, second edition, Samt, 2011.
    3. Shiravi, Abdul Hossein; International trade law, 13th edition, samt, 1400.

    -Article

    1. Agha Mohammadi, Ebrahim and Neda Badkobeh; "Comparison of Correspondence Principle in Domestic and International Arbitration", International Relations Research, First Volume, Number 21, 2015.
    2. Bakhtiarvand, Mostafa and Mitra Ahmadi; "Types of decisions in international commercial arbitration with an emphasis on Iranian law", International Legal Journal, No. 58, 2017.
    3. Tavasoli, Mohammad Sajjad and Amir Sadeghi Neshat; "The effect of cross-border bankruptcy on international commercial arbitration with an emphasis on Iranian law", Business Research, No. 99, 1400.
    4. Tavakoli, Zahra and Mahshid Sadat Tabaei; "The Legal Validity of Internet Arbitration in International Trade", International Law Research, Volume 8, Number 28, 2014.
    5. Hosseinzadeh, Mehdi; Sepideh Razi and Seyyed Mohsen Hekmati-Moghadam, " Competent court in extraterritorial (international) bankruptcy, a comparative study in Iranian law, American law and UNCITRAL Model Law 1977", Judicial Law Perspectives Quarterly, No. 71, 2014.
    6. Javadpur, Naghmeh; Hamidreza Olommi-Yazdi and Seyed Nasrullah Ebrahimi; "Resolving international commercial contract disputes through arbitration with an emphasis on Iran's legal system", Private Law Research Quarterly, Year 8, Number 83, 2018.
    7. Rezaei, Ali; "The issue of costs in international commercial arbitration", legal studies of Shiraz University, 8th term, issue 3, 2015.
    8. Zare, Mehdi and Mohsen Salimi; "An Introduction to Arbitration in International Commercial Claims", Private and Criminal Law Research, No. 26, 2014.
    9. Sarbazian, Majid and Abdulreza Sadeghi; "Analysis of the legislative policy of UNCITRAL, the European Union and Iranian law in the field of recognition and enforcement of foreign bankruptcy judgment", International Law Journal, No. 51, 2013.
    10. Sarbazian, Majid and Mitra Ahmadi; "Examination of the legal system of international commercial arbitration: a comparative study of Iranian law and UNCITRAL arbitration rules", comparative law two-quarter, second year, first issue, 2015.
    11. Suki, Azar; "The principle of relativity of the effects of contracts and obligations for the benefit of a third party in Iran's subject law", Nameh Elahiyat, No. 7, 2018.
    12. 12. Seyed Morteza Hosseini, Rahele and Milad Soltani; "Comparative study of the formal provisions governing international bankruptcy claims in the UNCITRAL Model Law and the new draft of Iran's Trade Law", Mazandaran University Comparative Law Research, Volume 2, Number 1, 2015 .
    13. Shariat Bagheri, Mohammad Javad; "Effects of the accession of the Islamic Republic of Iran to the New York Convention", Law of Justice, No. 36, 1380.
    14. Shiravi, Abdul Hossein and Mohammad Javad Kazemi; "Examination of the condition of negotiation in the settlement of commercial disputes according to the international judicial procedure", Law of Justice, year 82, number 104, 2016.
    15. Taheri, Soheil and Hossein Balazadeh; "The necessity of reforming the bankruptcy regulations", bi-quarterly scientific journal of evidence legal doctrines, 5th year, 2nd issue, serial 9, 2018.
    16. Qobadi, Sahar; Morteza Shahbazi-Nia and Mohammad Iesian-Tafarshi; "Comparative study of arbitration restrictions in bankruptcy in Iranian and American law", Comparative Law Research, Volume 23, Number 1, 2017.
    17. Ghorbani Lachovani, Majid; "Cross-border bankruptcy: an introduction to the UNCITRAL model law on cross-border bankruptcy", World Trade Studies, No. 12 and 13, 2017.
    18. Mohammadi, Sam and Hossam Kadivar; "Ambiguity in international bankruptcy; In search of a suitable point of view", Encyclopedia of Economic Law, new edition, 20th year, number 3, 2011.
    19. Mohammadi-Nejad, Samira and Ali Gharibeh and Hasan Pashazadeh; "Limitations of the freedom of will of the parties in determining the law governing international commercial arbitration", Contemporary Legal Studies, Year 12, Number 24, 1400.

    English

     

    - Books

    1. Houtte, Hans Van. The law of international trade. 2ndLondon: Swett & Maxwell, 1995.
    2. Moses, Margaret, The Principles and Practice of International Commercial Arbitration, 2ndCambridge University press, 2012.

    3.        Pierce, John VH, and Pierre-Yves Gunter, eds. The Guide to IP Arbitration. Law Business Research Limited, 2022.

    4.        Keay, Andrew, and Peter Walton. Insolvency law: Corporate and personal, 2nd ed. Pearson, 2011.

     

    - Articles

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    2. Bufford, Samuel, "International Insolvency Law and International Arbitration – A Preliminary Perspective," Penn State Law Legal Studies Research Paper, no. 2 (2014).

    3. Buhler, Micha. "Awarding Costs in International Commercial Arbitration: an Overview." ASA Bulletin22, no. 2 (2004): 249.
    4. Chan, Andrew Chee Yin, Jonathan Tuan San Chan, Jo Yu Xi Tay, and Alexander Lawrence Han Tiong Yeo. "Cross-border insolvency and its impact on arbitration." Singapore Academy of Law Journal26 (2014): 999-1035.
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    6. Gropper, Allan L, "The Arbitration of Cross-border Insolvencies." American Bankruptcy Law Journal 86(2012): 201.
    7. Liborio, Vanessa, and James Hargrove. "Arbitration and Insolvency: English and Swiss Perspectives." Arbitration: The International Journal of Arbitration, Mediation and Dispute Management75, no. 1 (2009).
    8. Howell, Jonathan L. "International insolvency law." International Law.42, no.1 (2008): 113.
    9. LoPucki, Lynn M. "Cooperation in international bankruptcy: A post-universalist approach." Cornell Law Review84, no. 3 (1998): 696.
    10. LoPucki, Lynn M. "The case for cooperative territoriality in international" Michigan Law Review98, no. 7 (2000): 2216-2251.
    11. Yip, Man. "The Singapore International Commercial Court: The Future of Litigation." Erasmus Law. Review12, 1 (2019): 82.

     

    1. Mulaj, Valbon. "The advantages and disadvantages of arbitration in relation to the regular courts in Kosovo." Hungarian Journal of Legal Studies59, no. 1 (2018): 118-133.
    2. Rosell, José. "Arbitration Costs as Relief and/or Damages." Journal of International Arbitration28, no. 2 (2011).
    3. Savola, Mika. "Awarding costs in international commercial arbitration." Scandinavian Studies in Law63 (2017): 275-318.
    4. Ware, Stephen J. "Similarities Between Arbitration and Bankruptcy Litigation." Nevada Law Journal 11 (2010): 436.
    5. Westbrook, Jay Lawrence. "A global solution to multinational default." Michigan Law Review 98, no. 7 (2000): 2276-2328.
    6. O’Reilly, Michael. "Provisions on Costs and Appeals: An Assessment from an International Perspective." Arbitration: The International Journal of Arbitration, Mediation and Dispute Management 76, no. 4 (2010).
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    8. Kovacs, Robert B. "A Transnational Approach to the Arbitrability of Insolvency Proceedings in International Arbitration." Norton-Journal of Bankruptcy Law and Practice21, no. 5 (2012): 521.

    - Thesis

    1. Van de Ven, Fabian. "Insolvency in International Commercial Arbitration." PhD diss., Universität St. Gallen, 2017.
    2. Karagianni, "Arbitration and Insolvency Proceedings." (International Hellenic University, LLM Thesis, 2015).

     

    - Documents

    1. Mańko, Rafał, Cross-border insolvency law in the EU, (Library of the European Parliament, 2013), available on: https://www.europarl.europa. eu/%20RegData/bibliotheque/briefing/2013/130476/LDM_BRI%282013%29130476_REV1_EN.pdf, last accessed on June 16, 2024.
    2. Sussman, Edna, and Jennifer L. Gorskie. "Capturing the benefits of arbitration for cross border insolvency disputes." In Contemporary Issues in International Arbitration and Mediation: The Fordham Papers (2012), pp. 158-172. Brill Nijhoff, 2013.
    3. Business and Property Courts The Commercial Court Report 2020-2021 (Including the Admiralty Court Report), Published by Judicial Office, (2022). Available at: https://www.judiciary.uk/wp-content/uploads/ 2022/02/14.50_Commercial_Court_Annual_Report_2020_ 21_WEB.pdf, last acceessed on June 17, 2024.

     

    1. United Nations Commission on International Trade Law (UNCITRAL)/ Part Two- Guide to Enactment of the UNCITRAL Model Law on Cross-Border Insolvency. Available at: https://uncitral.un.org/sites/ uncitral.un.org/files/media-documents/uncitral/en/insolvency-e.pdf, last accessed on June 16, 2024.

  • Receive Date 05 October 2023
  • Revise Date 01 June 2024
  • Accept Date 02 June 2024