How Indian firms can navigate Czech courts: A practical guide to litigation

Indian companies expanding into Europe often discover that Czech courts operate under fundamentally different procedural rules than their home jurisdiction. Understanding these distinctions—from evidence requirements to enforcement mechanisms—is critical before filing any claim or defending against litigation. This guide reveals what Indian business owners typically overlook about Czech civil procedure and shows you how to protect your interests without costly procedural mistakes.

Understanding the Czech civil justice system and its key differences

When Indian firms enter the Czech market, they frequently assume that European legal systems function similarly to each other or to the common law system they know. This misconception can prove expensive. The Czech Republic operates under a civil law system fundamentally distinct from common law jurisdictions, and even compared to other European nations, Czech procedure contains unique characteristics that catch foreign litigants unprepared.

The Czech court system comprises district courts ( okresní soudy ), regional courts ( krajské soudy ), high courts ( vrchní soudy ), and the Supreme Court ( Nejvyšší soud ). District courts handle the vast majority of commercial disputes at first instance, regardless of the amount in dispute, following significant procedural reforms. Regional courts primarily act as appellate courts for these cases.

This structural difference shapes everything about litigation strategy. In India or the United States, attorneys often conduct extensive discovery—document exchanges, depositions of opposing parties, interrogatories—before trial. Czech procedure contains no direct equivalent to this broad pre-trial discovery. You cannot simply demand that your opponent produce broad categories of internal documents or sit for a deposition to "fish" for evidence.

While a judge can order the production of a specific, identified document ( editační povinnost ), this is a narrow exception, not the rule. You must largely gather your evidence before filing your claim and present it to the court to demonstrate why you deserve to win.

The consequences of this procedural structure are profound. An Indian litigant accustomed to developing evidence through discovery proceedings often files a Czech claim prematurely, expecting to flesh out the case during litigation. By then, it is often too late.

The Czech judge forms initial impressions based on your written statement of claim and supporting documentation. Gaps in proof are difficult to remedy later, especially due to the system of "concentration of proceedings," which bars new evidence after certain procedural milestones.

ARROWS Law Firm's lawyers work with Indian companies on a daily basis navigating these procedural distinctions. The firm combines in-depth knowledge of Czech law with experience advising foreign clients on how their home-country assumptions about litigation often mislead them in Central Europe. Because ARROWS Law Firm regularly handles cross-border disputes involving Indian parties, the firm understands which aspects of your familiar legal system will not apply here.

Why Czech procedure requires advance preparation

The absence of US-style discovery fundamentally changes how competent litigation counsel approaches Czech cases. Before the first document is filed with a Czech court, your legal team must have already identified all relevant evidence, assessed its credibility, and organized it into a logical narrative that the judge will find persuasive.

Consider a common scenario where an Indian software company contracts with a Czech manufacturer to supply components at a fixed price. The Czech firm subsequently claims that specifications were unclear and demands a price adjustment. In common law litigation, the Indian company might initially file a relatively skeletal complaint and then compel the Czech manufacturer to produce internal emails and records.

In Czech litigation, this approach is risky. The Indian company must arrive at court with the contract, all correspondence, technical specifications, testimony from witnesses who recall the original negotiations, and potentially expert opinions—all already translated into Czech.

This advance preparation requirement applies equally to evidence about damages. If you are seeking compensation for losses, you cannot file a general claim and later produce detailed calculations. Czech courts expect damages calculations to be substantiated by documentary proof from the outset—financial records, expert valuations, market analyses.

microFAQ – Legal tips on evidence preparation in Czech courts

1. Can I file a claim in Czech court and then request documents from the other party later?
Generally, no. Czech procedure does not include mandatory broad discovery. You must gather and present your evidence before filing. While you can ask the court to order the specific production of a known document, the court will only grant this if you can precisely identify it and prove its relevance.

2. What happens if evidence exists but is difficult to locate before filing?
You must prioritize locating it. The principle of "concentration of proceedings" means you may be barred from introducing evidence later in the case. Structure your claim to address what you can prove now and consult counsel on the strict deadlines for submitting further evidence.

3. If the other party has evidence I need, can a Czech court compel them to produce it during the case?
To a limited extent. The court can order the opposing party to submit a specific document ( editační povinnost ), but you must prove its existence. There is no mechanism equivalent to American document subpoenas or depositions.

The mandatory pre-litigation demand letter: An often-overlooked first step

Before filing any claim in Czech courts, procedural law (§ 142a of the Civil Procedure Code) requires that Indian firms send a formal pre-litigation demand letter, known locally as a předžalobní výzva , to the defendant. This letter must be delivered at least seven days before the claim is filed.

The letter should include a clear statement of the factual and legal basis for the claim, the amount demanded, and a deadline for payment or performance. The consequence of skipping this step sounds minor but is financially significant.

Even if your company ultimately wins the case on the merits, the Czech court will generally refuse to award legal costs (reimbursement of attorney fees) to the prevailing party if no pre-litigation demand letter was sent. Since Czech procedure operates under the "loser pays" principle, this omission directly reduces your financial recovery by thousands of euros.

The pre-litigation letter must be delivered to the defendant's last known address (or their Data Box, if applicable). ARROWS Law Firm ensures that this critical first step is completed correctly—the letter is drafted in precise Czech, addresses the defendant at the proper registered office, and is delivered through a method that creates clear proof of receipt.

Understanding jurisdiction before filing

Before sending any demand letter or claim, you must verify that Czech courts actually have jurisdiction over the defendant. Under EU regulations (Brussels I bis) and Czech private international law, the basic rule is straightforward: if the defendant is domiciled or registered in the Czech Republic, Czech courts have jurisdiction.

However, jurisdictional rules contain exceptions. If your contract contains a choice-of-court clause selecting a different jurisdiction, Czech courts may refuse to hear the case. If the dispute concerns rights in rem in real property (land or buildings), exclusive jurisdiction belongs to the court where the property is located.

microFAQ – Legal tips on jurisdiction and venue in Czech courts

1. If my Czech business partner is registered in Prague but conducts business from Berlin, which court has jurisdiction?
Generally, jurisdiction is determined by the defendant's registered office location. If the company is registered in Prague, Czech courts have jurisdiction.

2. Does the presence of a Czech contract automatically mean Czech courts are the right forum?
Not necessarily. What matters is the defendant's domicile and any choice-of-court clause in the contract. Ensure your contracts specify where disputes will be resolved before they arise.

Filing a claim in Czech courts: Procedural requirements and common mistakes

Once you have confirmed Czech jurisdiction and sent the pre-litigation demand letter, you can prepare the formal claim—called a žaloba . This is a legally structured submission that Czech courts review against precise procedural requirements.

The statement of claim must be filed at the correct district court based on territorial jurisdiction rules. The plaintiff generally must file at the court covering the defendant's registered office. Filing at the wrong court can cause delays while the case is transferred.

The claim must be accompanied by supporting documentary evidence. This is where many foreign litigants fail. Evidence in a foreign language requires official translation into Czech to be accepted as evidence.

Contracts drafted in English, Indian court documents, or expert reports must typically be translated by a court-certified translator ( soudní tlumočník ). While some judges may informally accept simple English documents, you cannot rely on this; the opposing party has the right to demand a translation.

The court fee ( soudní poplatek ) must be paid when the claim is filed. For commercial disputes, the fee is generally 5% of the disputed amount (for claims exceeding CZK 20,000), with a cap for extremely high amounts. If the fee is not paid, the court will stop the proceedings.

The role of the preliminary hearing and "concentration"

After the claim is filed and the defense is received, the court often schedules a preliminary hearing ( přípravné jednání ). This is an organizational meeting where the judge defines the subject of the dispute and attempts to facilitate a settlement.

Crucially, the Czech Civil Procedure Code applies the principle of concentration of proceedings. This means that parties must typically present all decisive facts and evidence by the end of the preliminary hearing (or within a deadline set by the judge). Evidence submitted after this deadline is usually rejected. This highlights why advance preparation is non-negotiable.

Payment order procedure: A fast-track route for undisputed claims

If your claim against a Czech company involves an undisputed debt—for instance, an unpaid invoice—consider the payment order procedure ( platební rozkaz ). Upon application, if the judge considers the claim justified based on the documents attached (contract, invoice), the court issues a payment order without a hearing.

The defendant then has 15 days from personal receipt to either pay or file an objection ( odpor ).

• Standard Payment Order: No specific financial limit, but requires personal service (cannot be served by "fiction of service" if the addressee is absent).
• Electronic Payment Order ( elektronický platební rozkaz ): Available for claims up to CZK 1,000,000 if filed via a specific electronic form.
• European Payment Order: Applicable for cross-border claims within the EU. Unlike the Small Claims Procedure (limited to EUR 5,000), the European Payment Order does not have a specific financial cap.

If the defendant files an objection within 15 days, the payment order is cancelled, and the case proceeds to standard litigation. If no objection is filed, the order becomes a final, enforceable judgment.

Evidence requirements: What the Czech court will accept

Czech law imposes strict rules about evidence. The burden of proof rests on the plaintiff. Acceptable evidence includes documents, witness testimony, expert opinions, and party interrogation.

• Documents: Must be original or officially certified copies.
• Foreign Documents: Public documents (like incorporation certificates) from India require an Apostille (since both India and Czechia are Hague Apostille Convention members) and a certified translation.
• Witnesses: Must be identified by name and address. The court summons them; there is no private "coaching" or deposition process.
• Foreign Law: If Indian law applies to the contract, you must prove the content of Indian law to the Czech court, often through expert affidavits. If you fail to prove it, the court may apply Czech law instead.

International service of process

If evidence or parties are in India, the Hague Service Convention applies. You cannot simply email a lawsuit to a party in India. Service must go through the Indian Central Authority, a process that can take 6–12 months.

For Indian companies suing Czech entities, this is less of an issue (as the defendant is in Czechia). However, if a counterclaim is filed against you, you must be prepared for formal service procedures.

The court judgment and appeals process

After the trial, the court issues a judgment ( rozsudek ). An appeal ( odvolání ) must be filed within 15 days of the delivery of the written judgment.

This is a rigid statutory deadline. If you miss it, you lose the right to appeal. There is no concept of "excusable neglect" for missing this statutory deadline in Czech law.

Appellate courts (typically Regional or High Courts) review the case. A further extraordinary appeal ( dovolání ) to the Supreme Court is possible only for questions of law and is admissible only under strict conditions (usually for claims exceeding CZK 50,000).

Enforcement of Czech judgments

Obtaining a judgment is only the first step. If the debtor does not pay voluntarily, you must initiate enforcement ( exekuce ). Enforcement is conducted by private bailiffs ( soudní exekutoři ).

You select a bailiff, who then has extensive powers to freeze bank accounts, seize property, or garnish wages. The bailiff fees are statutorily regulated.

Crucially, if the debtor has no assets in the Czech Republic, a Czech judgment may be difficult to enforce elsewhere. India has not declared the Czech Republic a "reciprocating territory" for the execution of decrees under Section 44A of the Indian Civil Procedure Code. This means you cannot automatically execute a Czech commercial judgment in India; you would generally need to file a fresh suit in India based on the foreign judgment.

Executive summary for management

Strategic business considerations for Indian firms navigating Czech litigation

• No Discovery: You must have your evidence ready before filing.
• Mandatory Pre-Action Letter: Failure to send a předžalobní výzva 7 days prior to filing forfeits your right to recover legal costs.
• Strict Deadlines: The 15-day appeal deadline is absolute.
• Translations: Budget for certified translations of all English/Hindi documents.
• Enforcement: A Czech judgment is automatically enforceable in the EU, but enforcing it back in India requires a fresh legal suit due to the lack of a specific reciprocity treaty for civil decrees.

Conclusion of the article

Navigating Czech courts as an Indian business requires fundamental shifts in litigation strategy. The absence of discovery, mandatory pre-litigation procedures, and distinct enforcement mechanisms create a landscape where mistakes are costly.

ARROWS Law Firm's lawyers represent Indian and foreign companies in Czech commercial disputes. The firm's experience with the specific procedural challenges that foreign litigants face enables ARROWS Law Firm to guide clients through Czech litigation efficiently.

If you are facing a commercial dispute with a Czech partner, contact ARROWS Law Firm at office@arws.cz.

FAQ – Frequently asked legal questions

1. What is the biggest mistake Indian companies make when filing claims in Czech courts?
Filing a claim prematurely without gathering all evidence. Czech procedure has no broad discovery; late evidence can be rejected. Also, failing to send the pre-litigation demand letter, which results in losing the right to recover attorney fees.

2. How long does it typically take to obtain a final judgment?
Standard litigation takes 12–36 months. Payment order procedures for undisputed debts can be faster (2–6 months) if no objection is filed.

3. Do I need to hire a Czech lawyer?
Yes. Proceedings are in Czech, and procedural rules are strict. Foreign counsel cannot represent you in Czech courts unless they are registered in the Czech Republic.

4. Can I enforce a Czech court judgment if the defendant is now based in India?
Not automatically. India does not currently recognize Czech civil judgments as directly executable decrees under s. 44A of the Indian CPC. You would likely need to file a new lawsuit in India based on the judgment.

5. What evidence is needed?
Original or certified documents (contracts, invoices) are key. English documents require certified translation. Public documents from India need an Apostille.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we strive for maximum accuracy in the content, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS Law Firm directly (office@arws.cz). We accept no responsibility for any damage or complications arising from the independent use of the information in this article without our prior individual legal consultation and expert assessment. Each case requires a tailor-made solution, so please do not hesitate to contact us.