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Enforcement of Awards to which the Conventions do not Apply
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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.
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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:
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that there was a
contract between the parties whereunder disputes between
them were referred to arbitration to a arbitral tribunal
in a foreign country.
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that the award is
in accordance with the terms of the agreement.
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that the award is
not invalid according to the law governing arbitration
proceedings obtaining in the country where the award
was made.
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that it was a subsisting
award at the date of suit.
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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.
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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
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