ALTERNATE DISPUTE RESOLUTION

RESEARCH PAPER TOPIC: ENFORCEMENT OF ARBITRAL

AWARDS IN INDIA – REMOULD OF AN HOUR

Submitted by: Rimika Chauhan Supervisor name: Ms. Ummul Warrah

(18GSOL1010021)
LLB (Hons), 5th Sem
 TABLE OF CONTENTS

 Abstract
 Chapters of the project
 Introduction
 Enforcement of domestic awards
 Enforcement of foreign awards
 Public Policy
 The relevant provisions of Arbitration and Conciliation Act, 1996 dealing with foreign
Awards
 Propose amendments
 Suggestions
 Bibliography
ENFORCEMENT OF ARBITRAL AWARDS IN INDIA

ABSTRACT

The quest for justice has been an ideal which mankind has been aspiring for generations down the
line. This researcher paper aims to bring out the ways that there is the need of time to sharpen the
provisions of Arbitration and Conciliation Act, 1996 in order to remove certain demerits.
Article 39-A of the Constitution provides for guaranteeing equal access to justice the world has
experienced that adversarial judicial proceedings isn't the sole means that of resolution disputes.
Alternative Dispute Resolution mechanism is a click to that option. Despite the continual efforts, a
common man may sometimes find himself entrapped in litigation for as long as a life time, and
sometimes litigation carries on even on to the next generation. It has been rightly said, Speedy
disposal of cases and delivery of quality justice is an enduring agenda for all who are concerned with
administration of justice. In this context, there is an imminent need to supplement the current
infrastructure of courts by means of Alternative Dispute Resolution (ADR) mechanisms. Apart from
bringing efficiency in working of the judiciary, measures are being taken all over the world for
availing ADR systems for resolving pending disputes as well. Litigation may get involved to help
parties resolve the conflict if the parties cannot agree with an accord. Litigation can be an obstacle to
parties due to the unique and different rules and procedures of each country. In this case, litigation
may not be a good choice for dispute settlement. Accordingly, arbitration is considered to be a better
resolution method due to its private and independent nature. Also, it is no doubt far more confidential,
and the resulting award is generally easier to enforce than a court decision. As a result, multi-national
corporations have actualised the demand for alternative dispute resolution mechanisms, including
arbitration which has now become crucial for businesses operating in India as well. To minimize the
supervisory role of courts in the arbitral process‟ and „to provide that every final arbitral award is
enforced in the same manner as if it were a decree of the Court‟. The enforcement of these
awards/judgments where the party is in absentio is sometimes more complicated than one where the
opposite party has participated in the proceedings.
The issues of arbitrability, public policy, applicability of part one on foreign seated arbitration,
multitier arbitration, and other issues have also been examined to assess the success of the Act in
efficient making and enforcement of arbitral awards in India. The study argues that now it is the need
of time to sharpen the provisions of Arbitration and Conciliation Act, 1996 in order to remove certain
demerits. Further, there is need to have a separate enforcement mechanism of arbitration award.
KEYWORDS ADR (Alternative Dispute Resolution), Arbitration and Conciliation Act, Arbitration,
Litigation, Arbitral Award (foreign and domestic).
RESEARCH METHODOLOGY The research methodology followed in the paper is descriptive
and doctrinal. The researcher shall analysis various research articles, legislations, paper, of different
author.
For the convenience, present study has been divided into five chapters.

Chapter-I: Introduction This chapter identifies the problem, outline the objectives introduces the
research issues and explain the parameters of the research work. The chapter outline the
methodology of study for the rest of work.

Chapter II: Enforcement of Foreign Arbitral Awards in India This chapter attempts to examine the
enforcement procedure of foreign arbitral awards. This chapter discusses the definition of foreign
arbitration in terms of both New York Convention and Geneva Convention, conditions for
enforcement, nature and enforcement.

Chapter III: Enforcement of Domestic Arbitral Awards in India This chapter contains discussion on
making of arbitral awards in India and enforcement mechanism of domestic arbitral awards. In this
chapter an attempt has been made to explain the commencement of arbitral proceeding,
appointment of arbitrator and procedure for making of arbitral awards.

Chapter IV; International initiative on enforcement of arbitral awards This chapter brings to fore the
discussion on International initiatives on enforcement of arbitral awards. In this chapter discussion
has been made on international conventions, treaties, agreement related to arbitration.

Chapter V: Suggestions and Conclusion The last chapter concludes the work on the basis of whole
of the study and proposes accordingly suggestions on various issues.
1, INTRODUCTION
Expression “Arbitration” has not been defined under the Arbitration and Conciliation Act, 1996. The
definition in Section 2(1)(a) of the Act, 1996 is based on clause (a) of Article 2 of Model Law is
merely a clarification. It only suggests type of arbitration. The Arbitration Act, 1996 has problem of
definition with regard to „arbitrability‟ and „commercial‟ also. That means the scope of arbitrability
and commercial remains textually undefined. The term “Online Dispute Resolution” has escaped its
place in the Act. Beside this the fact that India is biggest market for e commerce whose annual
increasing growth is 55.5 percent an urgent need of regulatory framework regarding E- arbitration or
cyber arbitration is felt.
Multi-party arbitration, whether they involve one contract with multiple disputants or multiple
contracts as well as multiple disputants, has complexities that need to be attended to. There is no
particular rule for Multi-party arbitration, such arbitration is allowed, under Indian law. The
Arbitration and Conciliation Act, 1996 has not provided for any particular mechanism for
enforcement of arbitral tribunal order regarding interim measures under Section 17 of the Arbitration
Act, 1996. Under the new regime, the arbitral tribunal has the power to order interim measures even
after the making of the arbitral award, but before it is enforced. However, this is inconsistent with
Section 32of the Act, which provides that the mandate of an arbitral tribunal shall be terminated after
the making of the final award. If the arbitral tribunal ceases to have jurisdiction after passing the final
award, it is inconceivable as to how it would have the power to order interim measures after the
making of the final award. As per section 9(2) where a court passes an order for an interim measure of
protection, the arbitration must commence within 90 days of the order or such further time as the
court may determine but what would be the consequences when one may obtain the interim measure
tactically and further do not go for arbitration?
The party may choose to be represented by his lawyer or any professional who may be an Indian or a
foreign national. In this context it is relevant to note that no specific qualification is legally required
for being an arbiter. Section 44(b) of the Arbitration and Conciliation Act 1996, after the Amendment,
requires that the foreign award not only be made in a reciprocating territory, but also that the
reciprocating territory be notified by the Central Government in Official Gazette. With only about 48
countries out of nearly 197 on the globe having been notified as reciprocating territory, the scope of
enforcing foreign arbitral awards is significantly reduced. While, a time limit has been fixed for
challenge to a domestic arbitral award, no such time limit is prescribed for the enforcement of foreign
arbitral awards, as a result the recognized arbitral awards are still pending in process of enforcement
for many of the years.
The growth of international commerce has necessitated the creation of efficient methods of resolution
of disputes. In some situations, securing an award or a final judgment from the courts may only be a
battle half won this is especially true in the Indian context. We have come across situations where the
opposite parties decide to not participate in the arbitral process or abandon it mid-way. The
enforcement of these awards/judgments where the party is in absentio is sometimes more complicated
than one where the opposite party has participated in the proceedings. In some situations, objections
have been raised even against costs awarded by the tribunal or the jurisdiction of the tribunal or court,
as the case may be. The procedure for enforcement and execution of decrees in India is governed by
the Code of Civil Procedure, 1908 (“CPC”) while that of arbitral awards in India is primarily
governed by the Arbitration & Conciliation Act, 1996 (“Act”) as well as the CPC.
Domestic and foreign awards are enforced in the same manner as a decree of the Indian court. This
is true even for consent awards obtained pursuant to a settlement between parties. However, there is a
distinction in the process for enforcement of an award based on the seat of arbitration. While the
enforcement and execution of an India - seated arbitral award (“domestic award”) would be governed
by the provisions of Part I of the Act, enforcement of foreign - seated awards (“foreign award”) would
be governed by the provisions of Part II of the Act. 1
However, the Arbitration and Conciliation Act, 1996 and its amendments in 2015 and 2019 have
made significant changes to the system. Now the advantages of arbitration with respect to the
Indian scenario are:
1. Speedy, quick and efficient resolution of disputes or conflicts.
2. Freedom of parties to choose an arbitrator with expert and specific knowledge on the subject
matter of the dispute. Parties are also free to choose the number of arbitrators who will be on
the panel.
3. The parties can choose the procedure under which dispute is to be settled and this is a huge
advantage when compared to litigation because parties can choose their preferred date of
hearing as well as trial and this furthers the speedy resolution of cases.
4. The introduction of strict timelines by the Arbitration and Conciliation (Amendment) Act,
2019 whereby the arbitrators must pronounce an award within 12 months of constitution of
the tribunal ensures that the process is quick.
Commercial arbitration in India does have its disadvantages and some of them are:
1. Even though interference by the court has been considerably reduced by the 2019 amendment
with the establishment of the Arbitration Council of India, there are still situations when
judicial intervention is permitted, and this can cause a delay in proceedings because of
judicial burden and backlog of cases.
1. Lack of proper transcription facilities in India, resulting in hearings taking significantly longer
than they should. This significantly reduces the cost and time efficiencies of arbitration.
2. Earlier a majority of arbitrations in India are ad hoc without an institution exercising some
degree of control or oversight over the process and the arbitrators which meant that parties are
forced to choose from a very limited pool of competent arbitrators who tend to be expensive
and busy.

1
. Part II specifically deals with foreign awards which are in consonance with the provisions of the Convention
on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 or Convention on the Execution of
Foreign Arbitral Awards, 1927
2. Enforcement of domestic awards
An award holder would have to wait for a period of three months after the receipt of the award prior
to applying for enforcement and execution. During the intervening period, 2 the award may be
challenged in accordance with Section 34 of the Act. After expiry of the aforesaid period, if a court
finds the award to be enforceable, at the stage of execution, there can be no further challenge as to the
validity of the arbitral award.
Prior to the recent Arbitration and Conciliation (Amendment) Act, 2015 (“Amendment Act”), an
application for setting aside an award would tantamount to a stay on proceedings for execution of the
award. However, by virtue of the Amendment Act, a party challenging an award would have to move
a separate application in order to seek a stay on the execution of an award.
Section 11 of the Arbitration and Conciliation Act, 1996 deals with the appointment of
arbitrators. A person of any nationality may be appointed arbitrator unless the contrary intention is
expressed by the parties. The parties are free to agree on a procedure for appointment of arbitrator or
arbitrators. Where parties fail to appoint three arbitrators, each party shall appoint one arbitrator and
the two arbitrators shall appoint the third arbitrator. Hence, appointing three arbitrators is mandatory,
with the third one being the presiding arbitrator.
Where a party fails to appoint an arbitrator in accordance with the third arbitrator with the within
thirty days from the date of receipts of a request to do so from the other party or two appointed
arbitrators fail to agree on the third arbitrator within 30 days from the date of their appointment, the
appointment shall be made, upon a request of a party, by the Chief Justice of the High Court or any
person or institution designated by him.
In the absence of any procedure to appoint a sole arbitrator, if the parties fail to agree on the arbitrator
within 30 days from receipt on a request by one party from the other party to so agree, the
appointment shall be made upon request of a party, by the Chief Justice of the High Court or any
person or institution designated by him.
According to the Arbitration and Conciliation Act, 1996 an Arbitral Award:
 Shall be in writing;
 Shall be signed by members of Arbitral Tribunal;
 Shall state the reasons on which the Award is based;
 Date and place of arbitration;
The Act provides that after passing the Award, a signed copy of the Award shall be delivered to each
party. The Tribunal if required can also pass an interim arbitral award.
COMMENCEMENT OF ARBITRAL PROCEEDINGS
Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute
commence on the date on which a request for that dispute to be referred to arbitration is received by
the respondent
3. Enforcement of foreign awards

2
. A further period of 30 days may be granted by a court upon sufficient cause being shown for condonation of
delay.
India is a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral
Awards, 1958 (“New York Convention”) as well as the Geneva Convention on the Execution of
Foreign Arbitral Awards, 1927 (“Geneva Convention”). If a party receives a binding 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, 3 the award would then
be enforceable in India.
The enforcement of a foreign award in India is a two-stage process which is initiated by filing an
execution petition. Initially, a court would determine whether the award adhered to the requirements
of the Act. Once an award is found to be enforceable it may be enforced like a decree of that court.
However, at this stage parties would have to be mindful of the various challenges that may arise such
as objections taken by the opposite party, and requirements such as filing original/
authenticated copy of the award and the underlying agreement before the court.
Conditions for enforcement of arbitral awards – domestic and foreign
Enforcement of a foreign award may be refused 4 and a domestic award may be set aside 5 if it is
proven that:

 The parties to the agreement were under some incapacity.

 The agreement in question is not in accordance with the law to which the parties have
subjected it, or under the law of the country where the award was made (especially in case of
foreign awards).
 There is a failure to give proper notice of appointment of arbitrator or arbitral proceedings or
the party against whom the award was rendered was otherwise unable to present his case.
 Award is ultra vires the agreement or submission to arbitration.
 Award contains decisions on matters beyond the scope of submission to arbitration.
 Composition of the arbitral authority or the arbitral procedure is ultra vires agreement.
 Composition of the arbitral authority or the arbitral procedure is not in accordance with the
law of the country where the arbitration took place.
 The award (specifically a foreign award) has not yet become binding on the parties, or has
been set aside or suspended by a competent authority of the country in which, or under the
law of which that award was made.
 Subject matter of the dispute is not capable of settlement by arbitration under Indian law.
 Enforcement of the award would be contrary to the public policy of India.
Enforcement of arbitral awards: Appropriate forum & limitation
The Supreme Court in its recent ruling in, Sundaram Finance Ltd. v. Abdul Samad and Anr 6
clarified that an award holder can initiate execution proceedings before any court in India where
assets are located. In case the subject-matter of the arbitration is of a specified value, 7 commercial
courts established under the Commercial Courts, Commercial Division and Commercial Appellate
Division of High Courts Act 2015 (“Commercial Courts Act”) would have jurisdiction, as given
below:

3
India has entered into an agreement with the United Arab Emirates for Juridical and Judicial cooperation.
4
Arbitration and Conciliation Act 1996, s 48
5
Arbitration and Conciliation Act 1996, s 34
6
(2018) 3 SCC 622
7
Commercial Courts Act, s 2(1)(i), “Specified Value”, in relation to a commercial dispute, shall mean the value
of the subject-matter in respect of a suit as determined in accordance with section 12 which shall not be less than
three lakh rupees or such higher value, as may be notified by the Central
Government”
I. Award arising out of an India seated arbitration (being and international commercial
arbitration)
By virtue of the Commercial Courts Act and the Amendment Act, the Commercial Division of a High
Court where assets of the opposite party lie shall have jurisdiction for applications relating to
enforcement of such awards if the subject matter is money. In case of any other subject matter,
Commercial Division of a High Court which would have jurisdiction as if the subject matter of the
award was a subject matter of a suit shall have jurisdiction, i.e., where the opposite party resides or
carries on business or personally works for gain.
II. Award arising out of an India seated arbitration (not being an international commercial
arbitration)
As per the Commercial Courts Act and the Amendment Act, for such cases, the appropriate court
would be the Commercial Court exercising such jurisdiction which would ordinarily lie before any
principal Civil Court of original jurisdiction in a district, as well as the Commercial Division of a
High Court in exercise of its ordinary original civil jurisdiction.
III. Foreign Awards
Where the subject matter is money, the Commercial Division of any High Court in India where assets
of the opposite party lie shall have jurisdiction. In case of any other subject matter, Commercial
Division of a High Court which would have jurisdiction as if the subject matter of the award was a
subject matter of a suit shall have jurisdiction.
Limitation period for enforcement of awards
Domestic awards
Since arbitral awards are deemed as decrees for the purposes of enforcement (as observed by the
Supreme Court in M/s Umesh Goel v. Himachal Pradesh8 Cooperative Group Housing Society, the
Limitation Act 1963 applies to arbitrations. The limitation period for enforcement of such an award is
twelve years.
Foreign awards
The Act provides that certain conditions have to be assessed prior to enforcement of a foreign award,
and where the court is satisfied that the foreign award is enforceable, the award would be deemed to
be a decree of that court.9 The Supreme Court in M/s. Fuerst Day Lawson Ltd v. Jindal Exports
Ltd,10held that under the Act a foreign award is already stamped as the decree. It observed that, “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 foreign award is enforceable, it can proceed to take further effective steps for execution
of the same. There arises no question of making foreign award as a rule of court/decree again.”
Accordingly, courts have been of the view that the limitation period for enforcement of a foreign
award would be the limitation period for execution of decrees, i.e., twelve year 11
Public Policy:

8
5. (2016) 11 SCC 313)
9
The Arbitration and Conciliation Act 1996, s 4
10
2001 (6) SCC 356
11
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 (Bombay High Court,
decided on 13 November 2019)
The Arbitration and conciliation Act, 1996 or the Contract Act, 1872 do not define the expression
“Public Policy” or “opposed to public policy.” “Public Policy” is not the policy of a particular Govt. It
connotes some matter which concerns the public good or the public interest. Public Policy’ is
equivalent to the “Policy of Law.” Therefore, any acts that have a mischievous tendency so as to be
injurious to the interest of the state or the public is stated to be against “Public Policy” or against the
‘Policy of Law.”
Public Policy of India has most important role in the whole process of enforcement of an arbitral
award particularly the foreign awards because it involves parties, lawyers and arbitrators form
diverse legal &cultural traditions. Most often the arbitral tribunal consists of arbitrators from multiple
jurisdictions & legal traditions different from those of parties and of their council. It is thus desirable
that the International Companies/firms working in India as Joint venture or otherwise should be fully
aware for the law on public policy of India and its impact on arbitration awards.
In the case of Renusagar Power Co. Ltd v. General Electric Co. the Apex Court has held that the
Expression ‘Public Policy’ has a wider meaning in the context of a domestic award as distinguished
from a foreign award.”
The concept of the ‘Public Policy’ denotes that what is good for the public or in public Interest or
what would be injurious or harmful from time to time. It has very wide and general connotations.
Anything that hurts collective consensus is against the ‘Public Policy.’ Hence the Acts in violation of
law shall be considered against the ‘Public Policy’.
4. The relevant provisions of Arbitration and Conciliation Act, 1996 dealing with foreign
Awards
The Arbitration and Conciliation Act, 1996 deals with enforcement of foreign awards, and consist of
two chapters in chapter in Part II. Chapter I relates to the New York Convention Awards and
Chapter 2 to the Geneva Convention Awards, 1958 and the Geneva Convention on the Execution
of the foreign Arbitral Awards, 1927, deal with rules of procedure for enforcement of foreign awards
in different countries, which are parties to these conventions. As India is a party to both these
conventions, the relevant provisions relating to the enforcement of these awards have been
incorporated under the new Act of 1996.
New York Convention Awards
“Foreign Award” is defined in Section 44 12 of the act as an award on differences arising between
persons out of legal relationships, whether contractual or not, which are considered to be commercial
under the laws in force in India and made in pursuance of an agreement in writing for arbitration to be
governed on the Recognition and Enforcement of Foreign Awards Act, 1958, in the territory of a
Foreign State notified by the Government of India as having made reciprocal provisions for
enforcement of the convention.
Section 45 of the Act relating to New York Convention starts with non-obstante clause. It provides
that whenever a judicial authority is seized of an action in the matter in respect of which there is
arbitration agreement covered under the New York Convention, the Court shall refer the parties to the
arbitration, unless the court fins the agreement null and void, in operatives or incapable of being
performed. Section 45 of the present Act is analogous to Section 3 of the Foreign Awards act, 1961.
In Renusagar Co. v. General Electric Company,13 the Supreme Court state the following pre-
condition for the court to exercise its power to stay proceedings in respect of a matter to be referred to
arbitration

12
Arbitration and Conciliation Act, 1996
13
AIR 1985 SC 1156
 i. There must be an agreement to which Article II of the convention set forth, in the First
Schedule applies.
ii. A party to that agreement must have commence legal proceeding against another party thereto
iii. The legal proceedings must be in respect of any matter agree to be referred to arbitration in
such agreement.
iv. The application for stay must have been made before filing the written statement or taking
any other step in the legal proceedings
v. The judicial authority is satisfied that the agreement is valid, operate and capable of being
performed
vi. The judicial authority has to be satisfied that there are disputes between the parties with
regard to the matters agree to be referred.
It has been held in M/S Ormaa Implex Pvt. Ltd. v. Nissai Ash Pvt. Ltd,14 that when a sales contains
an arbitration agreement and the plaintiff file a suit for recovery of certain amount on the basis of that
contract then the plea of the plaintiff that he was not aware of the arbitration agreement existing under
the sales, contract cannot be believe an civil suit should be delayed.
When Foreign Award binding
Any foreign award which would be enforceable under this chapter shall be treated as binding for all
purposes on the persons as between whom it was made, an may accordingly be relied on be relied on
by any of the persons by way of defence, set off or otherwise in any legal proceedings in India an any
references in this chapter to enforcing a foreign award shall be constructed as including references to
relying on an award section 46 references.
Jurisdiction of the Court
Section 47 sets forth the formal requirements necessary to apply for enforcement of a foreign award.
A foreign award can be enforced under this chapter, if it fulfils two fundamental requirements
namely;
i. That the parties have submitted to the arbitration by an agreement which is valid under its
governing law and
ii. The award is valid and final according to the law which governs the arbitration proceedings.
The claimant, therefore, must plea an prove both existence and validity of the arbitration agreement
and the award and that depending on the next, the proceedings may be classified as a claim on the
award itself or on the submission agreement. The law governing the arbitration agreement governs the
jurisdiction of the tribunal render the award and the validity of the aware pens on the law governing
the arbitration proceedings.
Geneva Convention Awards
Unless the Geneva Convention in order to obtain recognition or enforcement of a foreign arbitral
award it is necessary to show that
a) The arbitration agreement is valid
b) Subject matter of dispute is capable of settlement by arbitration;
c) The award is made by a validly constitute arbitral tribunal
d) The award has become final in the country in which it has been made
e) Recognition an enforcement of award is not contrary to the public policy of the country
wherein it has to be enforced.

14
AIR 1998 DEL 15
The UNCITRAL model law states that an arbitral award irrespective of the country in which it was
made shall be recognize binding an upon application in writing to the competent court shall be
enforce. The choice of place of arbitration for international arbitration is guide by the convenience of
the parties with little or no connection with the state where the dispute takes place. 15
Filing of foreign awards in Indian Courts
The Indian courts would not be satisfied about the enforceability of the foreign award, if it is prove by
the party against whom it is sought to be enforce that the parties to the agreement under the law
applicable to them were we under some incapacity, or the agreement was not valid under the law to
which parties have subjected or in the absence of any indication thereof under the law of the place of
arbitration or the award has not yet become binding on the parties or had been set aside or suspended
by competent authority of the country in which or under the law of which that award was made. The
award will not be enforced in India if the court is satisfied that the subject matter of the award is
contrary to public policy. However, an appeal lies against the order of the court refusing to enforce the
award to the next higher court.
The new law affords only a restrictive right to the courts in India to refuse enforcement of a foreign
award and this is in accordance with the wishes of the international commercial community to the
effect that judicial control on the award should be restricted to the barest minimum. The approach of
the supreme court of India in the matter of arbitration awards is that an arbitration award should be
sustained and not destroyed by a court.
The second aspect of public policy will be whether the enforcement of the award would be against the
most basic notions of morality an justice in India this however will depend upon the facts of a case
and the approach of the court should always be to enforce an arbitration award ensuing from an
international arbitration an avert to the plea of public policy only in rare cases, in most rational an
enlightened manner.
Proposed Amendments
1. Litigating in courts in India is a time-consuming and expensive exercise, and justice usually
eludes both parties to an action. The injustice is particularly egregious in commercial
disputes, where cases remain pending for years. It is in this context that one must examine
“arbitration” as a method of dispute resolution that aims to provide an effective and efficient
alternative to traditional dispute resolution through Court.
2. In India, as in most developed legal systems, commercial contracts, whether with private
persons or with the State, usually contain an arbitration clause where parties agree to settle
any prospective dispute through arbitration instead of going to court. Arbitration has thus
emerged as a commercially significant method of dispute resolution; and its importance has
only grown since liberalisation in 1991.
3. The Arbitration and Conciliation Act, 1996 (hereinafter “the Act”) is based on the
UNCITRAL Model Law on International Commercial Arbitration, 1985 and the UNCITRAL
Conciliation Rules, 1980. The Act has now been in force for almost two decades, and in this
period of time, although arbitration has fast emerged as a frequently chosen alternative to
litigation, it has come to be afflicted with various problems including those of high costs and
delays, making it no better than either the earlier regime which it was intended to replace; or
to litigation, to which it intends to provide an alternative. Delays are inherent in the arbitration
process, and costs of arbitration can be tremendous. Even though courts play a pivotal role in
giving finality to certain issues which arise before, after and even during an arbitration, there
exists a serious threat of arbitration related litigation getting caught up in the huge list of
pending cases before the courts. After the award, a challenge under section 34 makes the
15
Chapter VIII Article 35 (UNCITRAL MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION)
 award inexecutable and such petitions remain pending for several years. The object of quick
alternative disputes resolution frequently stands frustrated.
4. There is, therefore, an urgent need to revise certain provisions of the Act to deal with these
problems that frequently arise in the arbitral process. The suggested amendments address a
variety of issues that plague the present regime of arbitration in India and, therefore, before
setting out the amendments, it would be useful to identify the problems that the suggested
amendments are intended to remedy and the context in which the said problems arise and
hence the context in which their solutions must be seen.
CONCLUSION
The Law of arbitration in India has gone through deep changes in recent decades. Regulations on
enforcement of foreign awards have significantly improved in recent years. India should, however,
accelerate the process of considering accession to, and ratification of, international and regional
conventions on enforcement of international arbitration awards in order of their priority for its
commercial relationships with the outside world. At the international level, it has been said the
convergence of legal systems or harmonization of commercial law will, in the long run, stabilize and
strengthen national economies and will create a healthy competitive environment. India should,
however, accelerate the process of considering accession to, and ratification of, international and
regional conventions on enforcement of international arbitration awards in order of their priority for
its commercial relationships with the outside world. At the international level, it has been said the
convergence of legal systems or harmonization of commercial law will, in the long run, stabilize and
strengthen national economies and will create a healthy competitive environment.
5. Suggestions

 A new schedule for enumerating matters considered as arbitrable may be added in issues in
the Arbitration and Conciliation Act, 1996. And also, Indian arbitration legislation should
allow a wider range of disputes to be capable of a reference to arbitration than it is presently
permitted. Limitation of arbitration to those disputes that can be subject to compromise is no
longer in tune with new developments in arbitration globally.
 The expression commercial as occurring in Section (2)(1)(f) of Act, 1996 and in Section (2)
of the Foreign Awards (Recognition and Enforcement) Act, 1961 should be construed broadly
having regard to manifold activities which are integral parts of international trade today.
 It is time for the Indian law of arbitration to develop a rule that could determine when a third
party wants to participate in an ongoing arbitration. There are many international rules that
determine when a third party could participate in an arbitration. The Arbitration and
Conciliation Act, 1996 may be influenced by these rules and changed accordingly.
 The Government should either notify most countries in the Official Gazette to enlarge the
scope of enforcing foreign arbitral awards, or do away with the requirement of Section 44(b)
of the Act that provides for notifying reciprocating territories in the Official Gazette.
 There should be a prescribed time limit for the enforcement of arbitral award and for this
purpose recommendation of 246th Law Commission Report may be taken into consideration

Bibliography

 THE ARBITRATION AND CONCILIATION ACT, 1996

 UNCITRAL Model Law on International Commercial Arbitration (United Nations document
Al40117, annex I) (As adopted by the United Nations Commission on International Trade
Law on 21 June 1985)
 https://www.mondaq.com/india/arbitration-dispute-resolution/929490/enforcement-of-
domestic-arbitral-awards
 https://www.lexology.com/library/detail.aspx?g=7f7b07eb-8728-4e20-9bbd-f335e8fac73d
 https://www.uncitral.org/pdf/english/texts/arbitration/ml-arb/Model-Law-Arbitration-
Commonwealth.pdf