Foreign International Awards Essay

ENFORCEABILITY OF FOREIGN ARBITRAL AWARDS
INRODUCTION:
In the recent years, increasing international trade and investment is augmented and accompanied by excrescence in mechanism, international commerce and free trade have become global necessities. International arbitration has played a pivotal role in solving cross border transactions and also emanated as the preferred option for resolving cross-border commercial disputes and preserving business relationships. International legal systems are no more antiquated in archaic or obsolete manner. Foreign Arbitral Award indicates that there should be a cogent recognition of the proposition that arbitral awards should be enforceable anywhere, regardless of where made. To successfully prolong in litigation

New York Convention was adopted by a United Nations diplomatic conference on 10 June 1958 and entered into force on 7 June 1959. To recognize and enforce arbitration awards in the contracting states, the convention emphasized on the courts to constrain and to give effect to peculiar agreements to arbitrate and to sequester agreements which affects public policy. Since the Geneva Convention was basically indolent, this article discusses only provisions dealing with the enforcement of New York Convention awards. New York Convention was considered the eminent contrivance for international arbitration, enforcement of arbitral awards was not pertinent to domestic awards which are sought. In order to qualify a foreign award under the Arbitration and Conciliation Act, 1996 the award should have been made in pursuance of an agreement in writing for arbitration to be governed by the New York Convention on the recognition and enforcement of foreign arbitral awards, 1958, and not to be governed by the law of

Enforcement of arbitral award can be refused if it is breach of "Public Policy”. However in this case ONGC Ltd v Saw Pipe Ltd , it was held that the expression where an award was suffering from patent of law error or in conflict with public policy under section 48(2)(b) can be set aside for patently illegal. This has a significant explanation under section 48 of the 1996 Act in consonance with Article v of the New York Convention. Under Section 48(1) and (2) of Arbitration and Conciliation Act, 1996 a foreign award will not be enforced in India if it is proved by the party against whom it is sought to be enforced that the parties to the agreement were, under few circumstances, if the party is suffering from incapacity or if its outside the scope of the agreement or if an agreement is invalid,