FOREIGN ARBITRAL AWARD

A foreign arbitral award is a legal judgment or order Passed by an arbitral tribunal in a

dispute Which have arises due to disagreement between parties from different nations. This
type of award is considered "foreign" because it originates from a jurisdiction or legal system
other than the one where enforcement or recognition is sought. These awards typically result
from international arbitration proceedings, Here Parties give consent to settle their
Controversy (Dispute) through the process of arbitration instead of following the traditional
court methods.
Key characteristics of foreign arbitral awards include:
 International Nature: They involve parties from different countries, which may have
their own legal systems and laws.
 Arbitration Agreement: An agreement of Arbitration is a law-abiding contract between
two individuals or two parties that if any dispute which have arisen or may arise in future
will be settled through arbitration instead of going to court. In this Process an unbiased
individual person is appointed who is termed as arbitrator or a panel of arbitrator whose
obligation is to adjudicate on the matter by hearing the argument and looking at the
evidence served by the individuals or parties in dispute. Arbitration is a form of
alternative dispute resolution (ADR). Arbitration agreements are commonly found in
various types of contracts, including employment contracts, consumer agreements,
commercial contracts, and international business agreements. They offer parties a means
to resolve disputes more efficiently and often with less public exposure compared to
going through the traditional court system. It is very important for individuals or parties
entering into arbitration agreement to carefully observe the terms and conditions of
arbitration agreement before entering into the agreement as it can significantly impact
their ability to pursue legal remedies through court
 Arbitral Tribunal: An arbitral tribunal is a panel of individuals or arbitrators appointed
to resolve disputes between parties through the process of arbitration. Arbitration is an
alternative dispute resolution process in which parties in dispute give consent for settling
their dispute by unbiased impartial third party or panel of arbitrator instead of going to
court. The specific procedures and rules governing the arbitral tribunal can vary
depending on the arbitration agreement, the chosen arbitration institution (such as the
International Chamber of Commerce or the American Arbitration Association), or
applicable national laws. Parties often outline the details of the arbitration process,
including the number of arbitrators, in their initial arbitration agreement or contract.
Overall, arbitral tribunals play a vital role in providing an efficient and effective means of
resolving disputes outside of traditional court systems. Overall, arbitral tribunals play a
vital role in providing an efficient and effective means of resolving disputes outside of
traditional court systems.
 Final and Binding: Like domestic arbitral awards, foreign arbitral awards are typically
concluding and Compulsory on the parties, meaning they are enforceable as legally
binding decisions.
 Recognition and Enforcement: To be accepted and implemented in a foreign
jurisdiction, a foreign arbitral award often requires the approval of the local courts or
 authorities. This process is usually governed by international conventions, such as the
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Foreign arbitral awards play a crucial role in Foreign commercial transactions, as they give
a means for parties to resolve their disputes in a neutral forum without relying on the often
complex and unfamiliar legal systems of foreign countries. The international recognition and
enforcement mechanisms established by conventions like the New York Convention help
ensure the enforceability and legitimacy of these awards across borders.

Recognition of foreign awards in India

Acceptance of foreign awards in India is controlled by the Indian Arbitration and
Conciliation Act, 1996, and India's obligations under international treaties and conventions.
Here are the key aspects of recognizing foreign awards in India:
 New York Convention: India is a Member to the New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, 1958. This convention is a
significant international treaty that facilitates the recognition and enforcement of foreign
arbitral awards in member countries. India recognizes and enforces foreign arbitral
awards from countries that are also parties to this convention. The New York Convention,
formally known as the United Nations Convention on the Recognition and Enforcement
of Foreign Arbitral Awards, is an international treaty that was adopted in 1958 and
entered into force in 1959. It is one of the most important and widely recognized
conventions in the field of international arbitration.
The primary purpose of the New York Convention is to facilitate the recognition and
enforcement of arbitral awards made in one country in the territory of another country.
This convention aims to promote the use of arbitration as an effective method for
resolving international commercial disputes and to ensure that arbitral awards are
enforceable globally with minimal hindrance.
The New York Convention has played a crucial role in promoting international trade and
commerce by providing a reliable mechanism for the enforcement of arbitral awards
across borders. It has significantly contributed to the growth of international arbitration as
a preferred method for resolving cross-border disputes.
 Geneva Convention: India is also a member to the Geneva Convention on the
implementation of Foreign Arbitral Awards, 1927. While this convention is somewhat
older and less widely used than the New York Convention, it may still apply in certain
cases. The Geneva Conventions are a set of four international treaties that establish the
humanitarian rules and standards for the treatment of victims of armed conflicts. They
were first established in the aftermath of World War II and have been updated and
expanded upon in subsequent years. The Conventions are named after the city of Geneva,
Switzerland, where they were initially negotiated and signed. The four Geneva
Conventions are:
First Geneva Convention (1864): This Convention primarily deals with the treatment of
wounded and sick soldiers on the battlefield. It provides protections for military medical
personnel and the establishment of the Red Cross as a humanitarian organization to assist
in providing medical care.
 Second Geneva Convention (1906): This Convention extends protections to wounded,
sick, and shipwrecked members of the armed forces at sea. It outlines the duties of parties
to care for and repatriate those affected.

Third Geneva Convention (1929): This Convention addresses the treatment of prisoners
of war (POWs) during armed conflicts. It sets out the rights and protections afforded to
captured military personnel, including provisions against torture and inhumane treatment.

Fourth Geneva Convention (1949): This Convention focuses on the protection of civilians
in times of armed conflict. It lays down rules regarding the treatment of civilians who are
not taking part in the hostilities, as well as civilians who are under the control of a party
to the conflict. It also deals with the treatment of civilian internees.

In addition to the four main Geneva Conventions, there are also Additional Protocols that
were adopted in 1977 to strengthen the protections for victims of armed conflicts. These
protocols address issues such as the protection of victims of non-international armed
conflicts and the protection of cultural property during armed conflicts.

The Geneva Conventions are considered a cornerstone of international humanitarian law

(IHL) and are ratified by a large number of countries around the world. Their primary aim
is to alleviate human suffering during times of armed conflict and to establish rules that
promote the humane treatment of all individuals affected by such conflicts, whether they
are combatants or civilians. Violations of the Geneva Conventions are considered war
crimes, and individuals can be held accountable for such violations under international
law.
 Indian Arbitration and Conciliation Act, 1996: The Indian Arbitration and
Conciliation Act, 1996, incorporates the provisions of the New York Convention and
provides the legal framework for acceptance and implementation of foreign arbitral
awards in India.
 Conditions for Recognition: The New York Convention or the Geneva Convention must
have been ratified by the nation where the award was made, and the issue must be capable
of being resolved by arbitration under Indian law, in order for India to recognise a foreign
arbitral ruling.

• The prize must fit the definition of a "foreign award" as stated in the Act.

• The award cannot be in conflict with Indian public policy.

• The person against whom the award is asserted must have had adequate notice of the
arbitration proceedings and must have been given a chance to submit their case.
 Application for Recognition: To get a foreign arbitral award recognized in India, the
individual seeking recognition must give an application before the appropriate court. The
court will then examine the conditions mentioned above and may enforce the award.
 Grounds for Challenge: Acceptance and implementation of foreign awards can be
challenged on certain grounds, such as:
  If the party against whom the award is passed was not given proper information
through notice of the arbitration proceedings or was not able to present their case.
 If the award related with a subject matter not covered by the arbitration agreement
or exceeds the scope of the agreement.
 If the formation of the arbitral tribunal or the arbitral procedure was not in
accordance with the agreement of the parties or the law of the Nation where the
arbitration was held.
 Public Policy Exception: Indian courts can reject to Accept and implement foreign
awards if they are Notwithstanding to the fundamental principles of Indian rules or public
policy.
It's essential to seek legal advice and follow the specific procedures outlined in the Indian
Arbitration and Conciliation Act, 1996, when seeking recognition and enforcement of foreign
arbitral awards in India. This process is typically handled through the Indian judicial system,
and compliance with the relevant legal provisions is crucial for successful acceptance and
implementation.

Enforcement of foreign awards in India

The New York Convention on the Recognition and Implementation of Foreign Arbitral
Awards, 1958, and the Arbitration and Conciliation Act, 1996, both control the enforcement
of foreign awards in India. India has ratified the New York Convention, which makes it
reasonably simple to implement international judgements.
Here are the key steps and procedures for enforcing a foreign arbitral award in India:
 Arbitration Agreement: Ensure that there is a valid arbitration agreement between the
parties that specifies the method and place of arbitration. The New York Convention
applies to arbitral awards made in the territory of a foreign country that is also a signatory
to the Convention.
 File a Petition: The party seeking to implement the foreign arbitral award in India must
file an application in the appropriate court. The appropriate court will be decided on the
value of the award:
 If the award is for an amount below a certain threshold, it can be filed in a district
court.
 If the award exceeds this threshold, it should be filed in a High Court
 Supporting Documents: Along with the petition, the party must submit the following
Papers:
 The document of the arbitration agreement.
 The original or a duly authenticated copy of the arbitral award.
 Evidence proving that the award is enforceable in the Nation where it was
declared.
 A certified translated copy of the award if it is not in English.
 Notice to the Other Party: The court will issue notice to the party against whom the
enforcement is sought (the respondent), giving them an opportunity to challenge the
enforcement on specific grounds as per the Arbitration and Conciliation Act.
 Challenge to Enforcement: The respondent can challenge the enforcement of the foreign
award on certain grounds, which include:
 Lack of a valid arbitration agreement.
 The award is not covered by the New York Convention.
 Violating the principles of natural justice.
 The award is against the policies made for public of India.
 Decision by the Court: The court will consider the arguments of both parties and make a
decision on whether to implement the foreign award. If the court finds in Favor of
enforcement, it will issue a decree for the amount specified in the award.
 Enforcement: Once the court issues a decree for the Implementation of the foreign
award, it can be executed like any other court decree in India. The award holder can
initiate the process of attachment and execution of assets of the judgment debtor.
It's important to note that India's position on the enforcement of foreign awards has evolved
over time, and the specific procedures and requirements may change. Therefore, it's advisable
to consult with legal experts who are well-versed in international arbitration and Indian
arbitration laws when seeking to enforce a foreign arbitral award in India.

Limitation Period for Enforcement of Foreign

Arbitral Award in India
In India, there was a three-year statute of limitations before a foreign arbitral judgement
could be enforced. The Arbitration and Conciliation Act of 1996's Section 47 regulates this
statute of limitations and states the following:
"The party applying for the enforcement of a foreign award shall, at the time of filing the
application, produce before the court—
 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 referred to in the arbitration clause or a duly certified copy thereof;
and
 such evidence as may be necessary to prove that the award is a foreign award."
Challenges in Executing foreign Arbitral Award in India
Due to many number of legal, administrative, and practical obstacles, it can be difficult to
implement foreign arbitral judgements in India. Even if India has ratified the New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards, there may still
be obstacles in the way of foreign parties' attempts to have their awards upheld there. Among
the principal difficulties are:
 Complex Legal Framework: India has a complex legal framework for arbitration, with
multiple laws and regulations governing arbitration proceedings. This complexity can
lead to confusion and delays in the enforcement process.
 Limited Grounds for Challenge: The Indian Arbitration and Conciliation Act, 1996,
provides limited grounds on which foreign arbitral awards can be challenged. However,
parties often attempt to challenge the awards on these grounds, leading to protracted
litigation.
 Anti-Arbitration Injunctions: Indian courts have, in some cases, issued anti-arbitration
injunctions, preventing parties from pursuing arbitration or enforcing foreign arbitral
awards. This can hinder the enforcement process.
 Procedural Delays: The Indian judicial system is known for its backlog of cases and
procedural delays. Enforcing a foreign arbitral award can take a significant amount of
time due to the slow pace of litigation.
 Indian Public Policy: If Indian courts determine that a foreign award is against Indian
public policy, they may decide not to enforce the award. Parties frequently use this
defence to thwart enforcement.
 Local Courts' Interpretation: The interpretation of the New York Convention and other
relevant laws by Indian courts may vary, leading to inconsistent decisions on
enforcement.
 Enforcement Against Government Entities: Enforcing foreign arbitral awards against
government entities in India can be particularly challenging, as they often enjoy sovereign
immunity and have additional procedural protections.
 Currency Control Regulations: India's currency control regulations can create hurdles
in enforcing foreign awards that involve monetary payments. These regulations can affect
the conversion and repatriation of funds.
 Practical Challenges: Enforcement can also face practical challenges such as locating
assets against which the award can be enforced, especially when the losing party seeks to
evade payment.
 Inadequate Infrastructure: In some cases, inadequate infrastructure and resources in
certain regions of India can impede the enforcement process.
To navigate these challenges, parties asking to implement foreign arbitral awards in India
should seek legal counsel with expertise in international arbitration and Indian law. They
should also be prepared for a potentially lengthy and complex legal process. Moreover,
staying updated on the evolving legal landscape and judicial decisions is crucial for a
successful enforcement strategy in India.