New Publication: Public Order as a Ground for Annulment of Arbitral Awards in Romania

We are pleased to announce the publication of a new article on the Kluwer Arbitration Blog“Public Order as a Ground for Annulment of Arbitral Awards in Romania”, authored by Mihai Ionescu-Balea, Partner of Sarbu Partners.

The article provides an insightful analysis from the perspective of a Romanian lawyer specialised on international arbitration, examining how public order functions as a ground for setting aside arbitral awards under Article 608(1)(h) of the Romanian Civil Procedure Code. It examines the substantive meaning of public order in Romanian law, its distinction from mandatory legal provisions, and the doctrinal and jurisprudential developments that shape its application in annulment proceedings.

The contribution explores the categories of legal provisions that Romanian courts consider to be of public order, including tax law, insolvency, public procurement (with specific reference to construction arbitrations), and the relations with EU sanctions. At the same time, it clarifies which rules do not constitute public order for the purpose of annulment of arbitral awards proceedings, such as the statute of limitations or the binding force of contracts, despite these being frequently mischaracterised.

Through detailed case law analysis and references to Romanian Supreme Court decisions, the article offers practical guidance on the narrow and exceptional nature of this annulment ground. It emphasizes the high evidentiary threshold imposed by courts and the importance of distinguishing genuinely fundamental legal norms from ordinary mandatory provisions of law.

This publication is a valuable resource for practitioners, companies, and in-house counsel involved in arbitration seated in Romania, particularly in sectors such as construction, public procurement, and commercial disputes where annulment of arbitral awards proceedings based on public order frequently arise.

You can access the full article HERE.

For further information or tailored legal assistance in arbitration, enforcement, or annulment proceedings, feel free to contact our team at office@sarbupartners.ro.