International Construction Law Review
TIME BAR FOR CLAIMS UNDER IRAQI LAW
SALEH MAJID
Advocate (Iraq), Middle East Legal Consultant to Hill Taylor Dickinson, London
Many contractors and suppliers have kept on their books and balance sheets large claims against Iraqi entities in the hope of recovering them one day. The means for recovering such claims are limited but can be made through the UN Compensation Commission,1
through litigation, or through direct negotiations with the Iraqi parties.2
However, as time passes, the risk of finding the above-mentioned claims time barred grows, and certain questions have arisen:
- 1. What is the limitation period under Iraqi law in particular for claims arising from contracts, after which the Iraqi party or defendant may raise the defence of time bar, thereby depriving the claimant from pursuing his claims before the court?
- 2. How can such limitation periods be interrupted or stopped?
These are questions which this article attempts to answer.
The provisions of the Iraqi Civil Code no. 40 of 1951, Articles 429 to 443 lay down the general rules for limitation periods which are applicable to all kinds of transactions, except where the commercial or other laws stipulate to the contrary.
PERIOD OF LIMITATION
Article 429 of the Civil Code sets the general period for prescription of claims. According to the provisions of Article 429, a claim shall not be heard in respect of any obligation, whatever its cause, if the right has not been claimed for a period of 15 years, subject to any other specific provisions.
Article 430 of the Civil Code provides that in respect of recurring and periodical rights such as rent, interest and salaries, the claim of the creditor
1 UN Compensation Commission was established in accordance with Security Council Resolution no. 692 of 20 May 1991.
2 The writer has been involved in such negotiations where the Iraqi authorities have agreed to pay certain claims from Iraqi frozen assets in Europe.
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Time Bar For Claims Under Iraqi Law
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