CONDITION FOR ENFORCEMENT OF

FOREIGN AWARD
 INTRODUCTION
International trade and commerce have become increasingly interconnected in the modern
era, with businesses operating across borders and seeking to resolve disputes efficiently and
impartially. Such issues have begun to be settled in part through arbitration, which frequently
crosses international borders. The arbitration agreement's sanctity and the arbitral procedure's
effectiveness are upheld by the acceptance and execution of international arbitral awards. Part
2 of the Arbitration and Conciliation Act, 1996 principally contains the regulations for the
execution of foreign awards in India. This law intends to make it easier to recognize and
uphold foreign arbitral judgements and demonstrates India's adherence to the values upheld
by the New York Convention. This article explores Part 2 of the Arbitration and Conciliation
Act's requirements for the enactment of foreign awards.
The execution of foreign awards is addressed expressly in Part 2 of the Arbitration and
Conciliation Act, 1996. Because it governs India's admission and application of foreign
arbitral awards, this section is crucial in the global context. India's adherence to international
agreements, particularly the New York Convention, which strives to provide a unified
worldwide structure for the implementation of foreign awards, highlights the significance of
this section.
A variety of topics pertaining to the implementation of foreign awards are covered in Part 2
of the Act, which has a broad scope. It outlines the prerequisites, the required steps, and the
reasons why enforcement may be refused. These elements are necessary to create a legislative
framework that motivates foreign investors and companies to include arbitration as an
alternative to litigation in their international contracts.
Section 47 of the Act specifies the process for enforcing foreign judgements in India. The
proper court, which is often the relevant High Court, must receive an application from a party
seeking to enforce a foreign award. Once the requirements for enforcement are completed,
the court will review the application.
Once the court is satisfied that the conditions are met, the foreign award is deemed to be
enforceable as if it were a decree of the court. This gives the award-holder the same rights
and remedies for enforcement as they would have if they had obtained a domestic decree
from an Indian court. The court's order granting enforcement can be challenged in an appeal,
but such challenges are limited to specific grounds, primarily related to the conditions for
enforcement mentioned earlier.
Part 2 of the Arbitration and Conciliation Act, 1996's requirements for the enactment of
foreign awards are essential for ensuring that India upholds its commitment to international
arbitration conventions and offers a trustworthy and predictable framework for the
implementation of foreign arbitral awards. These provisions respect Indian legal principles
and public policy while also assisting in safeguarding the rights of parties to arbitration
agreements.
The Act's provisions strike a balance between fostering international commerce and
safeguarding national interests, making it an essential legal instrument in the global
arbitration landscape.The procedure for the enforcement of foreign awards in India is laid
down in Section 47 of the Act.

FOREIGN ARBITRAL AWARDS

Foreign arbitral awards are judicial decisions rendered through arbitration processes that take
place in a country other than the one where the award is intended to be enforced. These
awards play a crucial role in international business and dispute resolution, as they provide a
means for parties from different countries to resolve their disputes outside of traditional court
systems. In this 1000-word essay, we will explore the concept of foreign arbitral awards, their
significance, legal framework, enforcement procedures, and the challenges associated with
them.
Foreign arbitral awards are the product of international arbitration, a dispute resolution
method where parties, often from different countries, submit their disputes to a neutral
arbitrator or arbitral tribunal for a binding decision. The significance of these awards lies in
their role in promoting international trade, investment, and the resolution of cross-border
conflicts. They offer a fair and efficient alternative to litigation in domestic courts, which can
be time-consuming, expensive, and subject to differing legal systems and procedural rules.
The enforcement and recognition of foreign arbitral awards are primarily governed by
international conventions, national laws, and bilateral or multilateral agreements. One of the
most critical instruments in this context is the United Nations Convention on the Recognition
and Enforcement of Foreign Arbitral Awards, commonly known as the New York
Convention. This convention, adopted in 1958, has been ratified by over 160 countries and
establishes a framework for the recognition and enforcement of foreign arbitral awards.
Parties to the New York Convention are required to recognize and enforce foreign arbitral
awards issued in other member states, subject to limited exceptions.
National laws also play a vital role in regulating foreign arbitral awards. These laws address
various aspects of international arbitration, including the validity of arbitration agreements,
the composition of arbitral tribunals, and the grounds for setting aside or refusing
enforcement of awards. These laws provide the procedural and substantive framework for the
arbitration process and the subsequent recognition and enforcement of awards.
Foreign arbitral awards are a cornerstone of international dispute resolution, offering parties
from different jurisdictions a flexible and efficient way to resolve their conflicts. The legal
framework, including the New York Convention and national laws, ensures the enforceability
of these awards across borders, making them a reliable means of achieving justice in the
globalized world of business and commerce. However, challenges related to enforcement,
costs, and differing legal systems must be addressed to maximize the benefits of foreign
arbitral awards and continue their pivotal role in international trade and investment.
 Significance of Foreign Arbitral Awards
Foreign arbitral awards offer several benefits, making them a preferred choice for
international dispute resolution. Some of the key advantages include:
1. Neutrality: Arbitrators are often chosen for their expertise in the subject matter of the
dispute, and they come from different legal and cultural backgrounds. This promotes
neutrality and impartiality in decision-making.
2. Confidentiality: Arbitration proceedings are typically confidential, protecting
sensitive business information from public scrutiny.
3. Flexibility: Parties can tailor the arbitration process to meet their specific needs, such
as choosing the arbitrators, the language of the proceedings, and the location.
4. Enforceability: Foreign arbitral awards are generally easier to enforce across borders,
thanks to international conventions like the New York Convention.
5. Speed: Arbitration proceedings are often faster than traditional litigation, which can
drag on for years in some jurisdictions.
6. Expertise: Arbitrators are often experts in the field related to the dispute, ensuring
that the decision is well-informed and based on industry knowledge.
7. Finality: Arbitral awards are usually final and binding, providing closure to the
dispute.
IV. Recognition and Enforcement of Foreign Arbitral Awards
The recognition and enforcement of foreign arbitral awards are fundamental to their
effectiveness. The New York Convention, as mentioned earlier, sets forth a relatively
straightforward process for this purpose. To seek recognition and enforcement, a party must
typically follow these steps:
1. File an application: The party seeking recognition and enforcement of the foreign
arbitral award files an application in the competent court of the jurisdiction where
enforcement is sought.
2. Provide Required Documents: The applicant must attach certain documents to the
application, including the original award, the arbitration agreement, and a duly
certified translation if the documents are not in the official language of the
jurisdiction.
3. Limited Grounds for Challenge: The New York Convention provides a limited
number of grounds on which enforcement can be refused. These include issues such
as incapacity of the parties, invalid arbitration agreement, procedural unfairness, and
more.
 4. Court Review: The court in the enforcement jurisdiction reviews the application and
the award to ensure compliance with the New York Convention and local laws. The
court's role is typically limited to a review of formalities rather than re-examining the
merits of the case.

COMPETENT AUTHORITY DEALING WITH

FOREIGN ARBITRAL AWARD
A competent authority dealing with foreign arbitral awards refers to the legal body or entity
responsible for recognizing and enforcing arbitration awards issued in international
arbitration proceedings. This authority plays a critical role in upholding the principles of
arbitration, ensuring that parties to arbitration agreements can have their awards respected
and enforced across different jurisdictions. Here, we will discuss the key aspects and
functions of a competent authority dealing with foreign arbitral awards in under 1000 words.
 Recognition and Enforcement: One of the primary functions of a competent authority is
to recognize and enforce foreign arbitral awards. When parties from different countries
engage in arbitration, the resulting award may need to be enforced in a jurisdiction
different from where it was issued. The competent authority ensures that these awards are
recognized and enforced within their jurisdiction, upholding the finality and binding
nature of the arbitration process.
 International Conventions and Treaties: Competent authorities often derive their
power from international conventions and treaties. The most well-known and widely
adopted treaty in this regard is the United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards, commonly known as the New York
Convention. Many countries are signatories to this convention, which sets out the
principles for the recognition and enforcement of foreign arbitral awards. Competent
authorities implement the New York Convention provisions and other relevant
international agreements into their domestic legal systems.
 Review and Challenge: Competent authorities are responsible for reviewing applications
for the recognition and enforcement of foreign arbitral awards. This review ensures that
the awards comply with the requirements specified in international conventions and
national laws. They may also consider challenges raised by the parties involved, such as
allegations of procedural irregularities or violations of public policy.
 Public Policy Considerations: While the principle of enforcing foreign arbitral awards is
fundamental, competent authorities must balance this with public policy considerations. If
enforcing an award would violate the core values and principles of the jurisdiction's
public policy, the authority may refuse recognition or enforcement. Such considerations
are typically narrowly construed to prevent unjustified interference with arbitration
awards.
 Exclusivity of Remedies: The competent authority provides an exclusive remedy for
parties seeking to enforce a foreign arbitral award. This means that parties must go
 through the prescribed legal process for recognition and enforcement and cannot seek
parallel remedies through the national court system.
 Non-Discrimination: A competent authority should apply recognition and enforcement
procedures without discrimination based on the nationality of the parties or the origin of
the award. This principle promotes fairness and consistency in the treatment of foreign
arbitral awards.
 Limited Review: Competent authorities do not conduct a full review of the merits of the
underlying dispute. The primary focus is on the fairness of the arbitration process and the
legality of the award itself. The authority does not re-adjudicate the case.
 Challenging Awards: Parties seeking to challenge a foreign arbitral award must do so in
the jurisdiction where recognition and enforcement are sought. Challenges may be based
on procedural irregularities, lack of proper notice, or allegations that the award conflicts
with public policy.
 Expediency: Competent authorities are expected to handle recognition and enforcement
proceedings with expediency, reflecting the pro-arbitration stance of international
conventions. This helps ensure that the benefits of arbitration, such as efficiency and
finality, are preserved.
 Role in Facilitating International Trade and Investment: The existence of a reliable
competent authority for foreign arbitral awards is crucial for promoting international trade
and investment. Businesses and individuals are more inclined to engage in cross-border
transactions if they can be confident that the outcomes of any potential disputes can be
enforced internationally.
 Limited Grounds for Refusal: The New York Convention provides limited grounds for
refusing the recognition and enforcement of foreign arbitral awards. These grounds
typically include issues like incapacity of parties, invalid arbitration agreements, and
violation of public policy. Competent authorities must carefully assess these grounds to
maintain the pro-arbitration spirit of the convention.
a competent authority dealing with foreign arbitral awards plays a vital role in facilitating
international arbitration and upholding the principles of arbitration, including finality and
enforceability. By adhering to international conventions and treating foreign awards fairly
and consistently, these authorities contribute to a global legal framework that encourages
international trade, investment, and dispute resolution through arbitration.
Enforcement of Foreign Awards under Part II
of the Arbitration and Conciliation
In India, both domestic and foreign arbitration are governed under the Arbitration and
Conciliation Act of 1996 (the "Act"). The Act's Part II focuses primarily on the execution of
international arbitral judgements. The implementation of foreign awards—arbitral
judgements rendered in nations other than India—is essential for advancing global trade and
investment. The requirements for the enactment of foreign awards under Part II of the Act are
discussed in this article. Section 44 of the Act provides the definition of "foreign awards."
According to this section, a foreign award is an arbitral award made in a country that is a
signatory to the New York Convention, the Geneva Convention, or under any multilateral
treaty to which India is a party. The New York Convention, in particular, is significant as it
provides for the recognition and enforcement of foreign arbitral awards in over 160 countries,
including India.
The recognition and enforcement of foreign awards in India is primarily governed by Section
48 of the Act. This section states that a foreign award may be recognized and enforced in
India only if it meets certain conditions. These conditions are in line with the objectives of
the New York Convention, which is to facilitate the enforcement of foreign arbitral awards
across borders.
Section 44 of the Act makes it clear that the foreign award must arise out of an arbitration
agreement. In other words, the dispute must have been referred to arbitration according to a
valid arbitration agreement, and the award must be in conformity with the terms of the
agreement. This condition is vital because it ensures that the parties have voluntarily agreed
to resolve their disputes through arbitration.
Proper Notice
The parties involved in the arbitration must have received proper notice of the appointment of
the arbitrator or the arbitral proceedings. This condition is important to guarantee that the
arbitration process was fair and that the parties had an opportunity to present their case.
The Award Must be Subject to the Proper Law
The foreign award must be made in accordance with the law governing the arbitration
agreement. The law applicable to the arbitration agreement is determined by the choice of the
parties or, in the absence of such a choice, by the law of the country where the award was
made. This condition ensures that the award is consistent with the legal framework agreed
upon by the parties.
No Contravention of Public Policy
The main prerequisite for the execution of foreign judgements is that they must not conflict
with Indian public policy. According to Section 48(2)(b) of the Act, an award may not be
enforced if doing so would be against India's public policy. This is an essential protection to
prevent enforcement in situations when doing so would be fundamentally at odds with Indian
values and legal norms.
Subject Matter Must be Arbitrable
According to Indian law, the topic of the dispute must be amenable to arbitration. Foreign
awards cannot be used to enforce certain sorts of disputes, such as those involving criminal
cases or subjects that are not subject to arbitration under Indian law.
Award Not Set Aside
The governing body in the nation where the international award was made should not have
cancelled or terminated it. Indian courts typically won't enforce an award if it was revoked in
the nation of origin.
Once a party seeking enforcement satisfies the conditions mentioned above, they can apply to
an Indian court for the
Procedure for Enforcement
Acceptance and implementation of the international award. According to the Act, such an
application must also include the original arbitration agreement and the award, or duly
verified copies of both.
The court will then examine the conditions for enforcement, including whether any of the
exceptions provided in Section 48 of the Act apply. If the court finds no reason to refuse
enforcement, it will recognize and enforce the foreign award as a decree of that court.
Promoting international arbitration and attracting foreign investment depend on the
enforcement of foreign judgements under Part II of the Arbitration and Conciliation Act.
However, in order to assure justice, legitimacy, and consistency with Indian public policy,
this enforcement is subject to a number of requirements. These requirements seek to find a
balance between promoting global trade and investment and safeguarding the core values and
tenets of Indian law. To ensure the successful enforcement of foreign awards in India, it is
necessary for parties engaged in international arbitration to be aware of and adhere to these
requirements.
 CONCLUSION
As it guarantees the efficiency and legitimacy of arbitration as a conflict resolution method,
the enactment of foreign judgements is a crucial part of international arbitration. In India, Part
2 of the Arbitration and Conciliation Act of 1996 is where the majority of the regulations for
the enactment of foreign awards are set forth. Under certain restrictions, these principles offer
a framework for India to recognise and uphold international arbitral judgements. We have
looked at the many circumstances and requirements that must be met for the enactment of
foreign awards under Part 2 of the Act throughout this discussion. We shall discuss the
relevance of these circumstances, their effects on international arbitration in India, and more
in this conclusion. And the need for a balanced and pro-arbitration approach.
The Arbitration and Conciliation Act, 1996, is India's legal regulation for arbitration, and it
encompasses the principles of the UNCITRAL Model Law. The law's second section
expressly addresses how international awards are enforced. A foreign award is defined in
Section 44 of the Act. and Section 45 provides that such foreign awards are binding and can
be enforced in India. However, the Act also imposes certain conditions and requirements that
need to be satisfied before a foreign award can be enforced. These conditions, as outlined in
Sections 48 and 57 of the Act, play a pivotal role in ensuring the integrity of the enforcement
process.
The fact that the award was made in a nation that is a signatory to the New York Convention
is one of the key requirements for enforcing foreign awards. An important international
agreement that supports the execution of foreign arbitral awards is the New York Convention,
to which India is a party. This provision not only brings India into compliance with global
best practises, but it also highlights how crucial the Convention is for promoting global
commerce and investment. India gives international investors and companies some assurance
that their arbitration awards will be recognised and upheld in the nation by adhering to the
Convention.
The Act also lays down specific conditions for the enforcement of foreign awards under
Section 48. One of the critical conditions is that the award must not be contrary to the public
policy of India. This condition ensures that awards that are in violation of fundamental Indian
legal and moral principles are not enforced. It serves as a safeguard against awards that might
be considered fraudulent, illegal, or against the basic norms of justice. While this condition is
necessary, it should be interpreted and applied judiciously to avoid overly restrictive
interpretations that could deter foreign investors.
Another condition for enforcement is that the subject matter of the dispute must be capable of
settlement by arbitration under Indian law. This ensures that only matters that can be
legitimately arbitrated are enforced. While this condition is reasonable, it should be
interpreted in a manner that respects the autonomy of parties to choose arbitration as their
dispute resolution mechanism. Indian courts should not be overly intrusive in determining the
arbitrability of a dispute, and the Act's pro-arbitration stance should be upheld.
This condition safeguards the due process rights of parties involved and prevents situations
where a party is unfairly caught off guard by the enforcement of an award. Proper notice
ensures that the individuals had an opportunity to present its case, and this procedural fairness
is a cornerstone of the arbitration process.
Act's conditions for enforcement should be balanced with the overarching policy of pro-
arbitration. While it is crucial to uphold the integrity of the process and protect public policy,
Indian courts should be cautious not to overly scrutinize awards. A pro-enforcement bias
should be maintained to encourage arbitration as a preferred process of case settlement.
Lengthy and cumbersome enforcement procedures could deter parties from choosing
arbitration, undermining its efficacy.
In conclusion, the conditions for the imposition of foreign awards under Part 2 of the
Arbitration and Conciliation Act, 1996, are essential for ensuring the integrity of the
arbitration procedure and protecting the interests of parties involved. These conditions strike
a balance between India's commitment to international standards, safeguarding public policy,
and respecting due process. However, it is vital that Indian courts apply these conditions
judiciously and maintain a pro-arbitration approach to encourage international businesses and
investors to choose India as their preferred seat of arbitration.
International arbitration is a valuable mechanism for resolving cross-border disputes, and
India’s continued dedication in upholding the New York Convention and enforcing foreign
awards in accordance with the Act is crucial for promoting trust and confidence in its legal
system. While the Act's conditions are necessary, they should not become a barrier to the
efficient of foreign awards. By striking the right balance between these conditions and a pro-
arbitration approach, India can continue to attract international arbitration and position itself
as a reliable hub for resolving global disputes.