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Navigating the Enforcement Landscape: Foreign Arbitral Awards in India
Navigating the Enforcement Landscape: Foreign Arbitral Awards in India
The extension of international trade has led to one of the growing preferences of dispute resolution to Arbitration as this is a very speedy and simple method of resolving disputes in terms of national and international special concerning commercial disputes. This has been done with the easy method adopted for communication and transportation, though one of the main tasks that arises is to enforce the judgment provided in another country, it is still a complicated task and mostly very expensive.[1] Thus businesses are promptly moving towards arbitration as a simpler dispute resolution mechanism. In India, the enforcement of the arbitral award by foreign tribunals or institutions is governed under the Arbitration and Conciliation Act 1996. The other nonconventional awards provided are governed by the common law that is natural justice justice equity, and good conscience, laws such as the Code of Civil Procedure 1980 on the other hand, the international awards are governed and enforced under the New York Convention or the Geneva Convention. The Indian Arbitration and Conciliation Act is farmed and based on the UNCITRAL Model Law on International Commercial Arbitration.[2]
Enforcement of Awards
The Enforcement of the Foreign Arbitral Awards provided by various institutions in India is governed by Part II of the Indian Arbitration and Conciliation Act, which also allows the enforcement under the New York and the Geneva Convention, and these are made in the High Court of India. However, in Indian Courts, there is minimal power to grant interim relief for the foreign awards granted in the arbitration such as in the emergencies are very limited.[3] In the New York convention, the parties are supposed to necessarily submit the original award copy or the authentic copy of the award provided along with the foreign award provided. The court should also be satisfied and recognize the enforceability of the foreign award and then the award is considered as the decree of the court. On the other hand, the environmental process in India is very different and it mostly depends on the judgment being in the form of reciprocation or non-reciprocation of the country. If it is in the former one then the enforcement-seeking party has to file the execution proceedings in India, in the latter one the country requires a fresh or a new case all tighter to be filed and brought in India.[4] The court should also be provided with a certified copy of the decree and the satisfaction level of adjustment filed or to be filed. Although enforcement in nonreciprocating countries is a bit difficult and requires a verdict to be filed as an action for its success, that degree can also be carried out in India. If the efforts are taken by the decree-holder for the execution of a foreign dree in the Nation or domestically though the decree was not fully satisfied, they can file a petition for execution in India, within the time provided that is 3 years of the completion of the proceedings for the executions in the foreign country. So India does not appear to have a bias in the arbitration as the act aims to cover the international commercial arbitration reduce the supervision of the court and the enforcement of the final award is also done in the same manner as the court decree. However, a better understanding of the emergency arbitrations needs to be addressed.[5]
References
[1] Jain, Sankalp. "Enforcement of Foreign Arbitral Awards: International Conventions and Legal Regime in India." Available at SSRN 2778548 (2015).
[2]“Enforcement of Foreign Arbitral Awards in India: Procedures, Challenges, and Key Considerations.” King Stubb & Kasiva, 2 Mar. 2023, ksandk.com/arbitration/enforcement-of-foreign-arbitral-awards-in-india/.
[3] Kronke, Herbert, Patricia Nacimiento, and Dirk Otto. Recognition and enforcement of foreign arbitral awards: a global commentary on the New York Convention. Kluwer Law International BV, 2010.
[4] Sharma, Raghav. "Sanctity of Foreign Awards: Recent Developments in India." Arbitration: The International Journal of Arbitration, Mediation and Dispute Management 75.2 (2009).
[5] Sunder, Bhavana, and Kshama A. Loya. "Demystifying Public Policy to Enable Enforcement of Foreign Awards-Indian Perspective." Indian Rev. Int'l Arb. 1 (2021): 76.
- Enforcement of foreign awards in India is governed by the 1996 Arbitration and Conciliation Act, following the UNCITRAL Model Law for international commercial arbitration.
- Indian High Courts handle the enforcement process under Part II of the Act, applying the New York or Geneva Conventions.
- Enforcement procedures in India vary based on reciprocity with the foreign country.
