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ENFORCEMENT OF

CERTAIN FOREIGN
AWARDS

PRESENTATI
ON BY:
NAMAN
JAIN
103134038
11

FOREIGN AWARDS MEANING


FOREIGN AWARDS MEANS AN ARBITRAL AWARD
ON DIFFERENCES BETWEEN THE PARTIES
ARISING OUT OF LEGAL RELATIONSHIPS ,
WHETHER CONTRACTUAL OR NOT , CONSIDERED
AS COMMERCIAL UNDER THE LAW IN FORCE IN
INDIA.
TAKING INTO THECONSIDERATION THE
ENFORCEMENT OF FOREIGN AWARD, IT CANBE
ENFORCED IN INDIAUNDER THE MULTILATERAL
INTERNATIONAL CONVENTIONS TO WHICH INDIA
IS A PARTY.
FOREIGN ARBITRATION IS AN AWARD OR
ARBITRATION CONDUCTED IN A PLACE OUTSIDE
INDIA . THE RESULTANT AWARD IS AN AWARD, IF
SOUGHT TO BE ENFORCED IN INDIA ,

REQUIREMENT
THE UNITED NATIONS COMMISSION ON INTERNATIONAL
TRADE LAW[UNCITRAL] ADOPTED IN 1985 THE MODEL LAW
ON INTERNATIONAL COMMERCIAL ARBITRATION. THE
GENERAL ASSEMBLY OF THEUNITED NATIONS HAS
RECOMMENDED THAT ALL COUNTRIES GIVE
DUECONSIDERATION TO THE SAID MODEL LAW ,IN VIEW
OFTHE DESIRABILITY OF UNIFORMITY OF LAW
OFARBITRALPROCEDURES AND THE SPECIFIC NEEDS
OFINTERNATIONAL COMMERCIAL ARBITRATIONPRACTICE.
AN IMPORTANT FEATURE OF THESAID UNCITRAL MODEL
LAW AND RULES IS THAT THEY HAVE HARMONIZED
CONCEPTS OF ARBITRATION AND CONCILIATION
OFDIFFERENT LEGAL SYSTEMS OFTHE WORLD AND
THUSCONTAINED PROVISIONS UNIVERSAL APPLICATION.
THOUGH THE SAID UNCITRAL MODEL LAW AND RULESARE
INTENDED TO DEAL WITH INTERNATIONAL COMMERCIAL
ARBITRATION ANDCONCILIATION, THEY COULD WITH
APPROPRIATE MODIFICATIONS, SERVE AS A MODEL

CONVENTIONS UNDER THE


ARBITRATION AND
CONCILIATION ACT , 1996
ARE :

THE NEW YORK


CONVENTION AWARDS
OF 1958 (SECTION 44-50)
THE GENEVA
CONVENTION AWARDS
OF 1927 (SECTION 53-59)

NEW YORK CONVENTION


OF 1958
THE SCOPE OF THISSECTION IS ACTUALLY
UTILIZED BY ANY PARTY THAT IS INTERESTED IN
FOREIGN AWARDS TO THE COURT HAVING
JURISDICTION OVER THE SUBJECT MATTER .
THE DIFFERENTIATION BETWEEN THE AWARDS
MUSTAPPLY IN WRITING TOA COURT AND THE
FOREIGN AWARDS ARE ONLY THOSE WHERE
ARBITRATION TAKES PLACE IN A CONVENTION
COUNTRY.
BASICALLY NEW YORK CONVENTION AWARDS
ARE APPLICABLE TO THE DIFFERENCES BETWEEN
PERSONS ARISING OUT OF LEGAL RELATIONSHIPS
, WHETHER CONTRCTUAL OR NOT.

SECTION 45 : POWER OF THE


JUDICIAL AUTHORITY TO REFER
PARTIES TO ARBITRATION.
THE JUDICIAL AUTHORITY , WHEN SEIZED
OF AN ACTION IN A MATTER IN RESPECT
OF ONE OF THE PARTIES HAVE MADE AN
AGREEMENT REFERRED TO IN SECTION
44 , SHALL, AT THE REQUEST OF ONE OF
THE PARTIES OR ANY PERSON CLAIMING
THROUGH OR UNDER HIM , REFER THE
PARTIES TO ARBITRATION , UNLESS IT
FINDS THAT THE SAI AGREEMENT IS NULL
AND VOID , INOPERATIVE OR INCAPABLE
OF BEING PERFORMED.

IN SUPPORT OF THIS , A CASE


LAW IS THERE:
SHIVNATH RAI HAR NARAIN V/s ITALGRANI
S.P.A
ACCORDING TO SECTION 45, JUDICIAL AUTHORITY
HAS POWER TO REFER PARTIES TO ARBITRATION.
THE APPLICATION MUST BE MADE IN WRITINGAND
AT ANY TIMEBEFORE THE JUDGMENT OF THE
COURT IS PRONOUNCED IN THE SUIT. SUCH
APPLICATION SHOULD BE MADE BEFORE THE
COURT WHERE THE SUIT IS PENDING. IF THERE IS
VALID ARBITRATION AGREEMENT, THE SUIT MUST
BE STAYED AND THE MATTER REFERRED TO
ARBITRATION AS HELD IN THE CASE.

SECTION 46 : WHEN FOREIGN


AWARD BINDING
ACCORDING TO THE SECTION 46, FOREIGN
AWARD SHALL BE BINDING FOR
ALLPURPOSES ON FOR ALL PURPOSES, ON
THE PERSONSAS BETWEEN WHOM IT WAS
MADE AND MAY ACCORDINGLY BE RELIED
ON ANY OF THOSE PERSONS BY WAY
OFDEFENSE , SET OFF OR OTHERWISE ANT
LEGAL PROCEEDINGS ININDIA.

SECTION 47: EVIDENCE


THE PARTY APPLYING FOR ENFORCEMENT OF
A FOREIGN AWARD SHALL PRODUCE
FOLLOWING TO THE COURT:
1) ORIGINAL AWARD OR A COPY THEREOF ,
DULY AUTHENTICATED IN THE MANNER
REQUIRED BY THE LAW OF THE COUNTRY
IN WHICH IT WAS MADE.
2) ORIGINAL AGREEMENT FOR ARBITRATION
OR A DULY CERTIFIED COPY THEREOF.
3) SUCH EVIDENCE AS MAY BE NECCESSARY
TO PROVE THAT THE AWARD IS A
FOREIGN AWARD.

IN SUPPORT OF THIS, A CASE


LAW IS THERE:
TRANS OCEAN SHIPPING AGENCY
PVT LTD V/S BLACK SEA SHIPPING

When the award given in a foreign


country is valid underthe law of the
country the award being governed by
the law of that country then the
enforcement of that award of India
does not violatepublic policy as held
in the case.

SECTION 48: CONDITIONS FOR


ENFORCEMENT OF FOREIGN AWARDS
Section 48 provides that theenforcement of foreign award
may be refused at the request of other party against whom
it is invoked, only ifthat party furnishes Court some proof :

PARTY AGAINST WHOM THE AWARD IS INVOKED WAS NOT GIVEN


PROPER NOTICE OF THE APPOINTMENT OF THE ARBITRATOR OR OF THE
ARBITRAL PROCEDDINGS.
UNDER SOME INCAPACITY OR THE SAID AGREEMENT IS NOT VALID
UNDER THE LAW TO WHICH PARTIES ARE SUBJECTED IT.
COMPOSITION OF ARBITRAL AUTHORITY OR PROCEDURE WAS NOT
ACCORDING WITH THE AGREEMENT OF THE PARTIES.
AWARD HAS NOT YET BECOME BIDING ON THE PARTIES OR HAS BEEN
SET ASIDE OR SUSPENDED BY A COMPETENT AUTHORITY OF THE
COUNTRY IN WHICH THE AWARD WAS MADE.

IN SUPPORT OF THIS, A CASE


LAW IS THERE:
FUERST DAY LAWSON Ltd V/S
JINDAL EXPORTS Ltd
For the enforcement of the foreign
award there is no need to take separate
proceedings one for deciding the
enforceability of award to make rule on
the court or decree andotherto take up
execution afterthat as held in this case.

SECTION 49:
ENFORCEMENT OF
FOREIGN AWARDS

ACCORDING TO THIS , WHERE THE


COURT IS SATISFIED THAT THE
FOREIGN AWARD IS ENFORCEABLE ,
THEN THE AWARD SHALL BE DEEMED
TO BE A DECREE OF THAT COURT.

SECTION 50: APPEALABLE


ORDERS
Court enforcing a foreign award cannot grant
interest beyond the date ofabiter dictum.
Under section 50, the court is authorized by
law to hearappeal from the following orders:
IF AN ORDER REFERS TO:
1)REFER THE PARTY TO ARBITRATION
2)ENFORCE A FOREIGN AWARD
If under this section any order is passed in
appeal, second appeal cannotbe filed against
such order. But appeal to the SupremeCourt
can be filed.

GENEVA CONVENTION
AWARDS
THIS CONVENTION
HASBEEN
REPRODUCED MOREOR LESSSAME AS
THENEW YORKCONVENTION AND HAS
NAME SAKE RELEVANCE BECAUSE OF
THE FACT THAT THIS CANNOT BE
APPLIEDTO THEFOREIGN AWARDS
UNDERTHE NEW YORK CONVENTION.
IN THIS FOREIGN AWARDS MEANS AN
ARBITRAL AWARD ON DIFFERENCES
RELTING TO MATTERS CONSIDERED S
COMMERCIAL UNDER THE LAW IN FORCE

SEC 54: POWER OF JUDICIAL


AUTHORITY TO REFER PARTIES TO
ARBITRATION
WHEN THERE IS DISPUTE
REGARDING A CONTRACT MADE
BETWEEN PARTIES UNDER SECTION
53 AND WITH AN ARBITRATION
AGREEMENT ARE CAPABLE OF BEING
CARRIED INTO EFFECT, SHALL REFER
THE PARTIES ON THE APPLICATION
OF EITHER OF PARTIES CLAIMING OR
UNDER HIM ON THE DECISION OF
ARBITRATORS.

SEC 55: FOREIGN


AWARDS WHEN
ANY FOREIGNBINDING
AWARD WILL BE

ENFORCEABLE SHALL BE TREATED AS


BINDING FOR ALL PURPOSE ON THE
PERSONS AS BETWEEN WHOM IT WAS
MADE AND MAY ACCORDINGLY BE
RELIED ON BY ANY OF THOSE PERSONS
BY WAY OF DEENCE, SET OFF OR
OTHERWISE IN ANY LEGAL
PROCEEDINGS IN INDIA.

SEC 56:EVIDENCE
SOME CONDITIONS NEED TO BE FULFILLED
BEFORE ENFORCEABILITY OF FOREIGN AWARDS :.
EVIDENCE PROVING THAT THE AWARD HAS BECOME
FINAL.
IF DOCUMENT IS IN FOREIGN LANGUAGE THEN PARTY
SEEKING TO ENFORCE THE AWARD SHALL PRODUCE A
TRANSLATION INTO ENGLISH AS CORRECT BY A
DIPLOMATIC OR CONSULAR AGENT OF THE COUNTRY TO
WHICH PARTY BELONGS.
MADE IN PURSUANCE OF AN AGREEMENT FOR
ARBITRATION VALID BY THE LAWBY WHICH IT WAS
GOVERNED.
MADE BY THE TRIBUNAL PROVIDED BY THE AGREEMENT

SEC 57:CONDITIONS FOR


ENFORCEMENT OF FOREIGN
AWARDS
MADE IN PURSUANCE
OF AN AGREEMENT FOR
ARBITRATION VALID BY THE LAWBY WHICH IT WAS
GOVERNED.
MADEINCONFORMITYWITHTHELAWGOVERNINGT
HEARBITRATIONPROCEDURE.
ENFORCEMT OF AWARD IS NOT CONTRARY TO THE
PUBLIC POLICY OR THE LAW OF INDIA.
MADE BY THE TRIBUNAL PROVIDED BY THE
AGREEMENT.
BECOME FINAL IN THE COUNTRY IT WAS MADE IN
RESPECT OF A MATTERWHICH MAY BE LAWFULLY BE
REFERRED TO ARBITRATION.

SEC 58:ENFORCEMENT OF
FOREIGN AWARDS
WHEN THE COURT IS SATISFIED THAT
THE FOREIGN AWARD IS
ENFORCEABLE UNDER THIS , THE
AWARD SHALL BE ENFORCED AND
DEEMED TO BE A DECREE OF THE
COURT.

SEC 59:APPEALABLE
ORDERS
AN APPEAL CAN BE DONE FROM THE
ORDERS REFUSING:
TO REFER PARTIES TO ARBITRATION UNDER
SECTION 54.
TO ENORCE A FOREIGN AWARD UNDER
SECTION 57.
IMP: NO SECOND APPEAL CAN BE DONE
UNDER THIS SECTION, BUT NOTHING SHALL
TAKE AWAY ANY RIGHT TO APPEAL TO
SUPREME COURT.

THANK
YOU

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