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Enforceability, The New York Convention.

Enforceability, The New York Convention.

Recognizing the increasing significance as a form of international arbitration. The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention) aims to establish common statutory requirements for the recognition of arbitration agreements and the recognition and enforcement of foreign and non-national arbitral awards by the courts in order to resolve international commercial disputes. The word "non-domestic" tends to include awards that are regarded as "foreign" under its law, when made in the state of compliance, due to a certain foreign factor in the proceedings, e.g. the procedural rules of another State are applied. 

The main purpose of the Convention is international and non-domestic arbitral arbitration. Awards shall not be discriminated against and the Contracting Parties shall be obliged to ensure that, Such awards are recognised in their compliance and are usually capable of authority. An ancillary function of The Convention requires the courts of the Parties to give arbitration full force. In contravention of their agreement to refer the matter to an arbitral tribunal, agreements by forcing courts to refuse the parties access to justice. 

Enforceability is the greatest value of international arbitration. International arbitration arrangements and awards are enforceable internationally under the New York Convention, the foundation of the international commercial arbitration system. Even though the list of countries that have acceded to its terms is quite long, the Convention is a short text, having grown to 119 as of September 1998. In1970, the United States acceded to the New York Convention; the permitting law became part of the 201-208 Federal Arbitration Act, 9 U.S.C.' It is generally recognized as one of the most effective multilateral trade agreements in history, owing to the large number of ratifying countries and the significant role that the Convention has played in promoting international trade. 

The Convention establishes a clear but detailed framework for international arbitration agreements to be recognized and implemented. It requires national courts to impose written arbitral agreements on the front end and to return the parties to arbitration, unless the court determines that the agreement is "null and void, inoperative or incapable of being performed." At the back end, the Convention allows a winning party to enforce the resulting award in national courts almost anywhere the properties of its adversary can be found. The Convention restricts the grounds on which a national court can refuse enforcement and puts the responsibility of proving these grounds on the party opposing enforcement. 

On the merits, awards should not be contested. The exclusive reasons for contesting an award are: 

  1. Parties' incapacity or invalidity of the arbitration agreement; 
  2. Failure to give notice or a fair hearing; 
  3. Exceeding the limits of the agreement to arbitrate; 
  4. Irregularities in procedures; and, 
  5. In the country where it was presented, the lack of finality or the setting aside of the award. 

Also, a court can refuse compliance if: 

  1. Under local rules, the conflict is not arbitrable; or, 
  2. Public policy would be contrary to regulation. 

The mutual compliance of forum assignment provisions or international decisions is not a comparable global treaty. Thus, arbitration is obviously the best way to ensure fair governance, a neutral forum and an enforceable outcome in the settlement of international disputes. 


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.

  • The New York Convention
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BY : Shivani Kinniwadi

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