Where a party receives a binding arbitral award from a country which is a signatory to the New York Convention or the Geneva Convention and the award is made in a territory which has been notified as a convention country by India, the award would then be enforceable in India and India has reciprocal arrangement with such countries. Out of the 196 countries in the world only 48 countries have been notified by the Central Government as reciprocating countries.
Another pre-condition of enforcing an award would be 12 years limitation period applicable from the date of passing of award. A person who intends to enforce a Foreign arbitral award must apply in the territorial jurisdiction of the Court where the contract was entered into or where the some or all the properties of the Respondent is situated. The party seeking to enforce the award must produce the original award or a copy thereof, duly authenticated in the manner required by the law of the country in which it was made, the original agreement for arbitration or a duly certified copy thereof, and such evidence as may be necessary to prove that the award is a foreign award. If the Award is in a foreign language then the same needs to be translated in English and certified by ta diplomatic or consular agent of the country.
Where the Court is satisfied that the foreign award is enforceable, the award shall be deemed to be a decree of that Court.
The enforcement of the foreign award may be refused if the Respondent proves that:-
- the parties were under some incapacity or
- the said Agreement is invalid under the law to which the parties have subjected it or
- the award was invoked without giving proper notice of appointment of arbitrator or
- the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration,
- or it contains decisions on matters beyond the scope of the submission to arbitration or
- or composition of arbitral tribunal was not inaccordance with the agreement of the parties
- or the award has been set aside by a competent authority in that country were the award was made.
Enforcement of an arbitral award can also be refused if the Court finds that the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or the enforcement of the award would be contrary to the public policy of India.