Legal system of Iran
The Iranian courts refer to the Civil Code as the main source of law for determining the legal and commercial rights of natural and legal persons. The awards issued by the Iranian courts are not binding as precedent on other courts residing over cases with similar facts. However, in exceptional cases the decisions of the General Board of the Supreme Court concerning similar cases constitute case precedent to be followed by other courts.
The Civil Procedure Code of the Public and Revolutionary Courts, which was approved in 2000, set forth the rules and procedures governing adjudication of disputes by the courts of law. The Civil Procedure Code envisages the rules and procedures concerning proceedings which must be observed by the courts, including the Public, Revolutionary, Appeal and Supreme Court.
The Iranian legal profession distinguishes between legal advisers and attorneys at law. Generally, legal advisers provide clients with legal advice, but do not have rights of audience before the Iranian courts. However, legal advisers to government entities are the only exception. Legal advisers must possess a law degree, but do not need to hold any professional qualifications or be licensed by the Iranian Bar Association.
Attorneys are licensed by the Bar Association are able to appear before all courts in Iran, regardless of their experience. There are exams and training periods to complete before an attorney is licensed by the Bar Association. There is a separate qualification route for attorneys to be licensed by the judiciary, rather than the Bar Association. Judiciary attorneys are limited in the types of dispute on which they may act and the courts before which they can appear.
Court System & Dispute Resolution
Courts of Iran
– Appellate Courts;
– The Supreme Court;
The growth in volume of trade and investLawsment in Iran over the recent years, in particular the energy sector, has laid the foundation for the creation of TRAC, which is the first Iranian arbitration institution to provide assistance and support to domestic and international arbitration tribunals. A growing number of Iranian businesses when concluding contracts with foreign companies refer their commercial disputes to arbitral tribunals constituted in accordance with the arbitration rules of TRAC or other ad hoc arbitration rules as agreed between the parties.
Iran is party to more than 50 Bilateral Investment Treaties (BITs), with capital- exporting countries which provide institutional rules of the International Chamber of Commerce (ICC) in Paris or ad hoc arbitration rules of UNCITRAL for settlement of disputes arising out of investment between foreign investors and the Iranian government or state entities.
Major Dispute Resolution Institutions of Iran
– The Tehran Regional Arbitration Centre (TRAC), which was established in 2004.