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Over the past few years, there has been a continuous rise in attention from the global business community toward Serbia’s legal system. This is caused by both Serbia’s strategic position and its legal framework, which is mostly harmonized with European norms. For businesses working across national borders, the process of recognizing and enforcing foreign arbitration decisions is still a crucial part of the legal system.

In this context, professional support services – including advice on applicable law and procedural matters – take on particular importance; such services are provided, in particular, by ELI Lithuania as part of its international practice.

Legal framework

Serbia is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This means that awards made in other States party to the Convention are, in general, subject to recognition and enforcement in Serbia, if all required conditions are satisfied. The key rules of the Convention have been included in domestic law. The key piece of legislation is the Serbian Arbitration Act. In addition, provisions of the Private International Law Act and the Code of Civil Procedure apply. This framework creates a relatively predictable legal environment for foreign investors and companies.

Serbian legislation generally takes a pro-arbitration approach. This is shown by the small number of reasons allowed for refusing to give legal effect and carry out awards. Court decisions in recent years also indicate a growing tendency to support arbitration as an alternative way of resolving disputes.

Competent authorities and procedure

In Serbia, requests to have foreign arbitration rulings recognized and enforced are usually filed with the relevant Commercial Court (Privredni sud). Which court will handle the case is generally decided by the debtor’s registered location or by where the debtor’s assets are located and can be targeted for enforcement. The process starts when the requesting party submits a formal request to recognize and enforce the arbitral decision. This request has to include a properly certified copy of the award, the original arbitration agreement (or an officially certified copy), and Serbian translations of all supporting documents.

The tribunal merely confirms that statutory conditions set by local legislation and the New York Convention have been fulfilled. It does not reassess the dispute or revisit the arbitral ruling, but solely ensures procedural correctness and checks for any legally recognized reasons to deny acknowledgment or execution.

Grounds for refusal

According to Serbian law, the reasons for denying recognition and preventing enforcement of foreign arbitral rulings largely correspond to those set out in the New York Convention. These reasons are typically divided into two separate categories.

The first group is usually raised by the party resisting enforcement. It covers matters like an invalid arbitration agreement, breaches of the right to be heard, the tribunal acting beyond its authority, non-compliance with the agreed procedure or essential procedural rules, and cases where the award is not yet final or has been annulled in the country where it was issued. The second category of grounds is applied by the court ex officio. These include conflicts with Serbian public policy and non-arbitrability of the dispute. Serbian courts generally apply the public policy exception restrictively and only in exceptional circumstances.

Practical aspects of implementation

Once an arbitral award has been recognised and declared enforceable, enforcement proceedings may commence. In Serbia, enforcement is carried out by public enforcement officers (public bailiffs – izvršitelji) within the framework of the applicable enforcement legislation. At this stage, enforcement officers are authorised to apply various enforcement measures, including freezing bank accounts, seizing movable and immovable property, and imposing prohibitions on the disposal or encumbrance of assets.

The duration of enforcement proceedings depends on the specific circumstances of the case, the structure and location of the debtor’s assets, and the debtor’s behaviour during the process. In some cases, enforcement may be significantly prolonged, particularly where the debtor actively challenges enforcement actions or attempts to transfer assets. Therefore, in practice, not only the recognition stage is important, but also the enforcement strategy aimed at effective recovery. Such strategy should be prepared in advance, taking into account jurisdictional factors, the debtor’s corporate structure, and the availability and traceability of assets.

Serbia as a jurisdiction for enforcement

Serbia stands outside the European Union, yet it is progressively harmonizing its laws with EU legal norms. This results in a system that combines adaptability with a fair level of foreseeability in judicial results. Regarding the enforcement of arbitration decisions, Serbia is usually viewed as having a steady and reliable legal framework. Courts in Serbia regularly and consistently apply international duties, including obligations under the New York Convention.

However, certain practical risks remain. These include court backlog, procedural formalities, and potential difficulties in interaction with local enforcement and administrative authorities. These factors should be taken into account when structuring an arbitration and enforcement strategy.

The role of legal support

At first glance, the process for accepting and implementing foreign arbitration decisions seems routine, but in practice involves numerous nuances. Errors in the preparation of documents, incorrect translations and failure to comply with procedural requirements can lead to delays or rejection. Preliminary analysis is of particular importance. It involves assessing the prospects of recognition, identifying potential grounds for refusal, analysing the debtor’s assets and selecting the optimal strategy.

Legal support is also essential during the enforcement proceedings. It is important to monitor the actions of bailiffs, respond promptly to the debtor’s objections, and utilise all available enforcement mechanisms.

Cross-border context

In the context of globalisation, the enforcement of arbitral awards is rarely confined to a single jurisdiction. Companies often find themselves having to conduct parallel proceedings in several countries. In this regard, Serbia frequently forms part of a broader strategy. For example, if a debtor holds assets in various countries across the Balkan region.

This requires coordination, an understanding of the specifics of local legislation, and experience in dealing with international procedures. Without a systematic approach, the effectiveness of debt recovery is significantly reduced.

Common mistakes made by applicants

In practice, there are a number of typical mistakes that companies make when attempting to enforce arbitral awards in Serbia. The importance of ensuring documents are correctly drawn up is often underestimated. Formal requirements are not fully complied with, which provides grounds for delaying the process. Another problem is the failure to analyse the debtor’s assets. Obtaining a court award does not guarantee actual recovery if the assets have not been identified in advance.

Future prospects

Serbia continues to reform its legal system. Among its priorities are improving the efficiency of judicial proceedings and strengthening the protection of investors’ rights. Further digitisation of processes and a reduction in the time taken to hear cases are expected. This may contribute to a more favorable approach toward giving effect to arbitration decisions. At the same time, there remains a need to align with international standards and case law. For businesses, this means a gradual reduction in risks, but not their complete elimination.

We support clients at every stage – from preliminary assessment to actual recovery. If you are interested in a more detailed analysis of your situation or in our services in this area, please do not hesitate to contact us. ELI Lithuania provides comprehensive support on matters of international arbitration, including work with the Serbian jurisdiction and other countries in the region.

FAQ

Does the court review the merits of the case?

No. The court does not assess the facts of the dispute nor does it review the correctness of the arbitral award. The examination is restricted only to procedural requirements defined by international and domestic rules.

What constitutes a breach of public order?

This is a limited category that relates to the basic principles of the legal system. In practice, courts interpret and apply this basis very cautiously, and it is seldom relied upon to reject a request.