Enforcement of Awards to which the Conventions do not Apply

    1. Foreign awards which are made in countries which are not parties to either the Geneva Convention or the New York Convention cannot be enforced with the same facility as in the case of foreign awards to which the Conventions apply.

    2. Such foreign awards are however enforceable in India on the same grounds and in the same circumstances in which they are enforceable under the general law on grounds of justice, equity and good conscience. They can be enforced by an action brought before a court of law. The principles and condition of enforcement of foreign awards as stated in some of the judgments of Indian courts are as follows:

      1. that there was a contract between the parties whereunder disputes between them were referred to arbitration to a arbitral tribunal in a foreign country.

      2. that the award is in accordance with the terms of the agreement.

      3. that the award is not invalid according to the law governing arbitration proceedings obtaining in the country where the award was made.

      4. that it was a subsisting award at the date of suit.

    3. A foreign award will not be enforced by the courts in India, if its enforcement would be contrary to public policy or the laws in India.

      There is not much case-law on the circumstances in which a foreign award can be challenged, assuming that it is made in accordance with a valid agreement to arbitrate and that it is valid and final according to the law governing the arbitration proceedings. There are also very few cases in which a foreign award has been denied recognition or enforcement on grounds of public policy or on the ground that it is against the laws of India. A foreign award will be deemed to be against the laws of India if it violates, for instance, provisions relating to exchange control, import export control or similar mandatory provisions.

    4. The provisions for enforcement of domestic awards (made under the Arbitration Act, 1940) of awards made in foreign countries to which the conventions apply and of awards to which the conventions do not apply, have been already considered (See Notes 8, 8.1, 8.2, 8.3 and 9).

New Law

    The above position survives under the New Law.