Enforcement of Foreign Awards in India

Prior 1996 enforcement was made with the help of 3enactments

In domestic awards- 1940 A&C act
Foreing awards -Arbitration (Protocol & Convention) Act 1937
the Foreign Awards (Recognition & Enforcement) Act 1961
New York convention - "foreign award" as an arbitral award on differences
between persons arising out of legal relationships, whether contractual or
not, considered as commercial under the law in force in India, made on or
after the 11th day of October, 1960-
Geneva convention- As per the Geneva Convention, "foreign award" means
an arbitral award on differences relating to matters considered as
commercial under the law in force in India made after the 28th day of July,
1924,-
The procedure for enforcement and execution of decrees in India is governed
by the Code of Civil Procedure, 1908 (“CPC”)
while that of arbitral awards in India is primarily governed by the Arbitration
& Conciliation Act, 1996 (“Act”) as well as the CPC.
A few steps that are crucial for ensuring successful enforcement of arbitral
awards and execution of decrees are: § Making effective service on opposite
party/ judgment debtor is crucial to prevent objections at later stage; §
Taking necessary steps by way of attachment/ notice/ arrest/ appointment
of receiver or in another manner; § Remember that principles of natural
justice apply to even execution proceedings
The enforcement of a foreign award in India is a two-stage process which is
initiated by filing an execution petition. Initially, a court would determine
whether the award adhered to the requirements of the Act. Once an award
is found to be enforceable it may be enforced like a decree of that court.
However at this stage parties would have to be mindful of the various
challenges that may arise such as frivolous objections taken by the opposite
party, and requirements such as filing original/ authenticated copy of the
award and the underlying agreement before the court.
I b. Requirements for enforcement of foreign awards § Original award or a
duly authenticated copy in the manner required by the country where it is
made. § Original agreement or duly certified copy. § Evidence necessary to
prove the award is a foreign award, wherever applicable
Conditions for enforcement of arbitral awards –
domestic and foreign A party may resort to the following grounds for
challenging an award. Such an award would be rendered unenforceable
when: §
The parties to the agreement were under some incapacity.
§ The agreement in question is not in accordance with the law to which the
parties have subjected it, or under the law of the country where the award
was made (especially in case of foreign awards).
§ There is a failure to give proper notice of appointment of arbitrator or
arbitral proceedings.
§ Award is ultra vires the agreement or submission to arbitration.
§ Award contains decisions on matters beyond the scope of submission to
arbitration.
§ Composition of the arbitral authority or the arbitral procedure is ultra vires
agreement.
§ Composition of the arbitral authority or the arbitral procedure is not in
accordance with the law of the country where the arbitration took place (in
case of foreign awards). The award (specifically a foreign award) has not yet
become binding on the parties, or has been set aside or suspended by a
competent authority of the country in which, or under the law of which that
award was made.
§ Subject matter of the dispute is not capable of settlement by arbitration
under Indian law.
§ Enforcement of the award would be contrary to the public policy of India. .

Stamping and registration requirements of awards – domestic and foreign

In Indian context getting an Arbitral Award or judgement from any court is
the battle only, half won. Due to the growth of dispute resolution through
Arbitration the creation of methods of enforcement of awards that
determine the rights and liabilities of the parties has been necessitated by
the International commerce.
Arbitral awards in India are enforced in the same manner as the order or
decree of any Indian court, be it domestic or international Award, hence
governed by the Civil Procedure code and primarily by the Arbitration and
conciliation Act 1996. The distinction lies in the seat of arbitration, where the
seat is in India i.e. Domestic Awards Part I of the Arbitration Act is applicable
and where the arbitration is foreign seated the i.e. foreign Award Part II of
Arbitration Act is applicable which especially deals with Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, 1958 or
Convention on the Execution of Foreign Arbitral Awards, 1927.
For the enforcement or the execution of an Arbitration Award the holder
must wait for a period of 90 days before applying to the court for the same,
and in case one has to challenge the award he must do it before the
expiration of intervening period or else there can be no further challenges as
to the validity of awards under 34 of the Act. Prior to the amendment act of
2015, any application for setting aside an award rendered a stay on the
execution proceedings of the award, but now under the amended Act of
2015 the applicant has to move a separate application in order to seek stay
on the execution proceedings.
If any person receives an Arbitration Award from any Country which is
Signatory to the new York convention and the Geneva Convention