India, being a signatory to the New York Convention 1958, has a well-established legal framework for the enforcement of foreign arbitral awards under the Arbitration and Conciliation Act, 1996 (the Act). Enforcement involves the recognition and execution of awards made outside India, enabling the winning party to recover dues effectively. The process balances respect for international arbitration with safeguards against awards contrary to Indian law or public policy.
The award must be made in a country that is a party to the New York Convention or Geneva Convention.
It must be made outside India.
The award should be in writing and final.
The party seeking enforcement (the award-holder) files a petition under Section 44 read with Section 48 of the Arbitration and Conciliation Act, 1996.
The petition is filed in the District Court or High Court having jurisdiction where the award debtor’s property is located.
Original award or certified copy.
Original arbitration agreement or certified copy.
Proof that the award debtor was duly notified of the arbitration.
Translations if documents are not in English or Hindi.
The court verifies if the award meets the criteria under Section 44 and 48.
Grounds for refusal under Section 48 include:
Invalid arbitration agreement.
Violation of due process.
Award beyond scope of arbitration.
Award not binding or set aside in the country of origin.
Award contrary to Indian public policy.
The court holds hearings to decide on enforcement.
If satisfied, the court recognizes the award as binding and issues an order for execution.
Execution proceeds like a civil court decree.
The successful party can approach the court for attachment and sale of the award debtor’s assets.
The enforcement process follows civil procedure.
There is limited scope to challenge enforcement orders.
Appeals can be made against refusal under certain conditions.
A Singapore-based supplier obtains an arbitral award against an Indian buyer in Singapore under an ICC arbitration clause.
The supplier files an enforcement petition in the Delhi High Court with the necessary documents.
The court reviews the validity of the arbitration agreement and award, ensuring no grounds under Section 48 exist.
Upon satisfaction, the court issues a decree for enforcement.
The supplier can then proceed to execute the award by attaching the Indian buyer’s assets.
The process is procedural but provides robust safeguards for both parties, ensuring awards are enforced fairly without compromising Indian public policy.
Answer By Law4u Team
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