Forum for Enforcement and Limitation
In instances wherein the foreign awards pertain to money, the commercial division of the High Court in India where the assets of the opposing party lie shall have jurisdiction.
In case of any other subject matter, the commercial division of the High Court which would have jurisdiction as per the award being the subject matter of a suit shall have jurisdiction.
Under Section 49 of the Act, a foreign arbitral award once enforced, is considered as a decree of the said court. In M/s. Fuerst Day Lawson Ltd v. Jindal Exports Ltd 2001 (6) SCC 356., the Supreme Court of India opined as follows:
“In one proceeding there may be different stages. In the first stage, the Court may have to decide about the enforceability of the award having regard to the requirement of the said provisions. Once the court decides that a foreign award is enforceable, it can proceed to take further effective steps for the execution of the same. There arises no question of making foreign awards as a rule of court/decree again.”
Therefore, the limitation period for execution or enforcement of foreign awards would be twelve years, as is the same for the execution of decrees. Limitation Act 1963, Schedule (item 136): “For the execution of any decree (other than a decree granting a mandatory injunction) or order of any civil court – Twelve years from when the decree or order becomes enforceable or where the decree or any subsequent order directs any payment of money or the delivery of any property to be made at a certain date or at recurring periods, when default in making the payment or delivery in respect of which execution is sought, takes place: Provided that an application for the enforcement or execution of a decree granting a perpetual injunction shall not be subject to any period of limitation.”; Compania Naviera ‘Sodnoc’ v. Bharat Refineries Ltd. AIR 2007 Mad 251; Imax Corporation v. E-City Entertainment (I) Pvt. Ltd. and Ors., Commercial Arbitration Petition No. 414 of 2018.
Application for enforcement: Format
An application filed before the High Court of competent jurisdiction should state all material facts, issues, and findings framed by the arbitral tribunal. The claim awarded must be mentioned and the extent to which the award for enforcement is sought. Such an application must be filed along with the documents as described hereinabove.
Appeal against Enforcement
There can not be any appeal made against enforcement of a foreign award and Section 50(1)(b) of the Act states that an appeal may only lie where an order refusing to enforce a foreign award under Section 48 of the Act.
Enforcement of Award pending Appeal in its seat
Under Article V(1)(e) of the Convention, enforcement of an award will be refused if the award has not yet become binding on the parties or has been set aside/suspended by the adjudicating authority of the Country in which the said award was made. In O.N.G.C. v. Western Co. of North America, 1987 AIR 674, the Supreme Court held that “till an award is transformed into a judgment and decree under section 17 of the Arbitration Act, it is altogether lifeless from the point of view of its enforceability. Life is infused into the award in the sense of its becoming enforceable only after it is made a rule of the court upon the judgment and decree in terms of the award being passed.”
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.