District Court of Nicosia Sets Aside Ex Parte Injunctions in Ongoing Arbitration

M.C. LOIZIDES & ASSOCIATES LLC represents a construction contractor in arbitration proceedings against an Employer arising from a construction dispute.

In the course of the arbitration, the Employer applied to the District Court of Nicosia and obtained ex parte interim injunctions restraining the continuation of the arbitral proceedings. Our client acted immediately and filed an objection seeking the discharge of the interim orders.

Yesterday, the Court issued its decision setting aside the ex parte injunctions, fully adopting the position advanced on behalf of our client.

1. The Court reaffirmed the strict and well-established principle that an applicant in ex parte proceedings bears a duty of full and frank disclosure, and that any failure—whether intentional or innocent—may amount to misleading the Court and justify the immediate discharge of the order.

2. Importantly, the Court emphasized that non-disclosure includes not only omission of material documents, but also the failure to properly identify and present them in a fair manner.

3. The Court further clarified that under the new Civil Procedure Rules, supplementary affidavits are permitted only where genuinely necessary for the just determination of the interim application, and not as a vehicle for argument.

A strong reminder that interim relief is exceptional and that full transparency is mandatory.