CLARIFYING ARBITRATION AGREEMENTS’ VALIDITY, BUT CONFUSING ENFORCEMENT: BULGARIA’S ARBITRAL TANGO

This paper deals with recent developments in Bulgarian arbitration world, focusing on the Supreme Court of Cassation’s Interpretative Ruling No, 1 of 21 February 2024, which has finally clarified two key issues: that the assignee is bound by the arbitration agreement concluded between the assignor and the debtor, and that no explicit power of attorney is required under Bulgarian law for concluding arbitration agreements. Despite this advancement, the paper highlights the ongoing uncertainty surrounding the recognition and enforcement of foreign arbitral awards, specifically regarding the formal requirements for the documents to be supplied to the Bulgarian courts. The core issue the Bulgarian courts are debating is whether the requirement in the domestic legislation for providing the court with arbitral award with notarisation of the signatures and the capacity of the arbitrators, along with a certificate that the award has entered into force, are applicable in the process of recognition and enforcement of foreign arbitral awards.