Enforcement of Arbitral Awards

06/01/2018 Enforcement of arbitral awards in India: overview | Practical Law
Enforcement of arbitral awards in India: overview

by C Muralidhara, Suman Katarki and Sony Bhatt, Murali & Co. Advocates
A Q&A guide to enforcement of arbitral awards law in India. Law stated as at 01-
Oct-2015
The Q&A gives a structured overview of the key practical issues concerning Resource Type
enforcement of arbitral awards in this jurisdiction, including definitions Country Q&A
and preliminary proceedings; applicable conventions; enforcing awards; Jurisdiction

public policy, enforcement proceedings; formalities; actual enforcement; India
and any reform proposals.
For more information on enforcement of judgments in India visit

Enforcement of judgments in India.
This Q&A is part of the Enforcement of Judgments and Arbitral Awards in

Commercial Matters Global Guide.
Enforcement of arbitral awards
Definitions and preliminary proceedings
1. What is the definition of an arbitral award in your

jurisdiction for the purpose of enforcement proceedings?
Arbitral award means the decision of an arbitral tribunal, whether in a

domestic or international
internatio arbitration. Arbitral award also includes an
interim award.
2. Are decisions in preliminary/provisional proceedings

recognised and enforceable?
https://uk.practicallaw.thomsonreuters.com/1-619-3233?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1 1/14
A preliminary/provisional award passed by an arbitral tribunal which may

dispose of some issues is valid and enforceable.
Applicable conventions
3. What conventions is your jurisdiction a contracting party

to?
India is a party to the UN Convention on the Recognition and Enforcement

of Foreign Arbitral Awards 1958 (New York Convention).
India is also a party to the Geneva Protocol on arbitration clauses of 1923,

and the Geneva Convention on the execution of foreign arbitral awards
1927.
Enforcing awards
4. What is the applicable statutory framework for

enforcement of awards?
The Arbitration and Conciliation Act 1996 (AC Act) is the governing law in
India for matters related to arbitration. Both the UN Convention on the
Recognition and Enforcement of Foreign Arbitral Awards 1958 (New York
Convention) as well as the Geneva Convention on the execution of foreign
arbitral awards 1927 have been adopted and included in the legislation
with respect to the enforcement of foreign awards.
5. What are the grounds for refusing enforcement?
Domestic awards
Under the Arbitration and Conciliation Act 1996 (AC Act), the party
aggrieved due to the arbitral award can file an application before the court
which has jurisdiction for setting aside the award. In the event that no such
application is filed within 30 days, the award holder can file for
enforcement of the award following the Civil Procedure Code 1908 (CPC).
An application for setting aside the arbitral award can be filed on the
following grounds:
The applicant was under some incapacity.
The arbitration agreement is not valid under the law to which the
parties have subjected themselves or, failing any indication of that,
under the law for the time being in force.
The party making the application was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his case.
The arbitral award deals with a dispute not contemplated by, or not
falling within, the terms of the submission to arbitration, or it contains
decisions on a matter beyond the scope of the submission to
arbitration.
The composition of the arbitral tribunal or the arbitral procedure was:
not in accordance with the agreement of the parties, unless such an

agreement was in conflict with a provision of the AC Act (from which
the parties cannot derogate); or
not in accordance with the AC Act.
The subject-matter of the dispute is not capable of settlement by

arbitration under the law.
The arbitral award is in conflict with the public policy of India.
International awards
Internatio
Under the AC Act, the enforcement of a foreign award can be refused at the
request of the party against whom it is invoked, only if that party furnishes
to the Indian court proof that:
The parties were under some incapacity.
The arbitration agreement is not valid under the law to which the
parties have subjected themselves or, failing any indication of that,
under the law of the country where the award was made.
The party against whom the award is invoked was not given proper
notice of the appointment of the arbitrator or of the arbitral
proceedings or was otherwise unable to present his case.
The award deals with a dispute that was not contemplated by, or not
falling within, the terms of the submission to arbitration, or it contains
decisions on matters beyond the scope of the submission to arbitration.
The composition of the arbitral authority or the arbitral procedure was

not in accordance with the agreement of the parties or failing such
agreement, was not in accordance with the law of the country where
the arbitration took place.
The award has not yet become binding on the parties, or has been set
aside or suspended by a competent authority of the country in which,
or under the law of which, that award was made.
The subject matter of the dispute is not capable of settlement by

arbitration under the law of India.
The award is contrary to the public policy of India.
6. Is the enforcing court required to examine the refusal

grounds during the enforcement proceedings ex o icio?
Irrespective of the grounds raised by the defendant, the court can examine
whether
The subject matter of the dispute is not capable of settlement by

arbitration under the laws of India.
The award is contrary to the public policy of India.
7. What is the e ect of pending challenge proceedings in

the foreign state where the decision is granted?
An award which is not binding on the parties, or has been set aside, or
suspended by a competent authority or the law of the country in which the
award was made, is one of the grounds for refusal of the enforcement of
the arbitral award (see Question 5).
8. What types of arbitral awards are enforceable?
Money awards
Money awards are enforceable.
Awards containing injunctions ordering or prohibiting the

doing of acts
There is a lacuna in the law at present with respect to the enforcement of
interim awards by the arbitral tribunal. Although provisions do exist for
filing applications before the arbitral tribunal, it is more practical for
parties to file an application seeking remedies before the court, that is,
either before, a er or during the course of the arbitration proceedings.
Decisions or awards by arbitral tribunals (including

emergency arbitrators) granting provisional measures
This is the same position as for awards containing injunctions ordering or
prohibiting the doing of acts, above.
Declaratory awards
Declaratory awards are enforceable.
Other awards
Not applicable.
9. Can parties seek to enforce only part of the award?
Parties can seek to enforce only part of the award.
10. Are any class of awards excluded from recognition and

enforcement? If so, what types of awards?
If the award is found to be in violation of the conditions set out in Question

5, the court will not grant recognition and enforcement to such an award.
11. Will service that does not conform to the requirements

of internatio
international treaties/regulations in force automatically
result in a denial of the enforcement of a
judgment/award/deed?
One of the grounds for denial of enforcement is that the party against
whom the award is invoked was not given proper notice of the
appointment of the arbitrator or of the arbitral proceedings (see Question
5).
12. What methods of service are not acceptable against

defendants domiciled in the state where enforcement is
sought?
Not applicable.
Public policy
13. Which country's public policy applies? Does the court

approach the issue di erently depending on whether the
award is a domestic or international
internatio award?
Domestic awards
See Enforcement of judgments in India, Questions 11 to 13.
Internatio
The public policy of India applies to both domestic and internatio

international
awards which are being enforced in India.
14. In which cases and against which awards has the

principle of public policy generally been applied?
The Supreme Court of India has dealt with question of public policy in
several cases. In the case of Shir Lal Mahal Ltd. vs. Progetto Grano Spa
[(2014) 2 SCC 433], it was held that, while considering the enforceability of
foreign awards, the court does not exercise appellate jurisdiction over
foreign awards, nor does it enquire as to whether, while rendering a
foreign award, some error has been committed by the foreign court. Under
Section 48(2)(b) of the Arbitration and Conciliation Act 1996 (AC Act), the
enforcement of a foreign award can be refused only if such enforcement is
found to be contrary to:
The fundamental policy of Indian law.
The interests of India.
The justice or morality.
If objections raised by the judgment debtor do not fall into any of the these
categories, the foreign award cannot be held to be contrary to the public
policy of India as contemplated under Section 48(2)(b) of the AC Act.
Enforcement proceedings
Procedure
15. What is the procedure for enforcing arbitral awards?
Domestic awards
The procedure is set out under the Civil Procedure Code 1908 (CPC).
Ex parte or on notice. Notice is issued to the defendant at first instance.
Applicable court. An application can be filed before the principal civil

court of the original jurisdiction, including the high court in exercise of its
ordinary original civil jurisdiction. This court can decide on questions
forming the subject-matter of the arbitration. The applicable court does
not include any civil court of a grade inferior to the principal civil court, or
any small claims court.
Limitation period. The limitation period is the same as for civil

proceedings, which is a limit of 12 years for execution from the date of
award.
Timing. The timing of the procedure can be (ideally) around six months.
Court fees. The court fee varies for each court and jurisdiction and
depends on the value of the award.
Recourse. Appeals can be filed in the court of appeal as stated in the

Arbitration and Conciliation Act 1996 (AC Act).
Internatio
The enforcement procedure for international
internatio awards is set out in Part II of
the AC Act. An application for the enforcement of a foreign award can be
filed under Section 44 of the AC Act.
Ex parte or on notice. At first instance, the respondent is notified of the

proceedings as under the CPC.
Applicable court. This is the same as for domestic awards, see above.
Limitation period. The limitation for filing enforcement proceedings for

arbitral awards is three years. Once the enforcement is allowed, the award
is deemed decreed and execution can e ectively be done within 12 years
from date of the award.
Timing. The procedure should take (ideally) around six months.
Court fees. These vary for each court and jurisdiction, and depend on the
value of the lawsuit.
Recourse. Appeals can be filed in the court of appeal as under the AC Act.
16. Can the enforcing court review the foreign award if all
formalities were complied with and if the award meets all
requirements?
The Supreme Court of India in the case of Bharat Aluminium Company and
Ors vs. Kaiser Aluminium Technical Service, Inc. and Ors [(2012) 9 SCC 552)]
dealt with, among other issues, whether Part I of the Arbitration and
Conciliation Act 1996 (AC Act) was applicable to international
internatio arbitration.
The Constitution Bench of the Court held that an Indian court has no
jurisdiction to set aside a foreign arbitral award under Section 34 (Part I),
unless the arbitration agreement was made before 6 September 2012 (the
date of the judgment). This judgment, famously known as the BALCO
judgment, has made it clear that Indian courts have no jurisdiction to
examine the subject matter of the case when the seat of arbitration is
outside India. Further in the Shir Lal Mahal Ltd case (supra), the Supreme
Court made it clear that Indian courts do not exercise appellate jurisdiction
over foreign awards and the enforcement of a foreign award can be
refused only if such enforcement is found to be contrary to the
fundamental policy of Indian law, the interests of India, or justice or
morality.
Formalities
17. What are the documentary requirements for

enforcement?
Documentary requirements
The documentary requirements are:
An original award or copy of the award duly authenticated.
The original arbitration agreement or duly certified copy of this.
Such evidence as may be necessary to prove that the award is a foreign

award.
If any of the documents are not in English, then English translation of the
documents, certified as correct by a diplomatic or consular agent of the
country to which it belongs to, or certified as correct, can be su icient
under Indian laws.
Authentication
As above.
18. Is it required to translate the award into the language of

the state where enforcement is requested?
Translations
Yes, but an English translation would also su ice.
Other languages
Only English is su icient.
Certification
See Question 17.
19. What is the format of the application for a declaration of

enforceability?
An application is filed before the court of the competent jurisdiction

seeking enforceability and execution of the foreign award.
20. What information must be included in the application

regarding the award, the claim as awarded in the award,
the facts and legal grounds of the case, and that the
judgment is no longer appealable?
Award
The application should state all the important facts and issues framed by
the arbitral tribunal and findings of the arbitral tribunal.
Claim as awarded
The claim as awarded should be mentioned and specifically the extent to
which the award for enforcement is sought.
Facts and legal grounds

This should be included to the extent that the arbitral tribunal has
discussed and relied upon the facts and legal grounds for granting the
award.
Appeals
This information should be provided to show that the award is final and
conclusive in the jurisdiction where the award is passed and also in the
jurisdiction of applicable law which the parties have agreed to in the
arbitration agreement.
21. Is it possible to request the enforcing court for

provisional measures pending the enforcement
proceedings?
See Enforcement of judgments in India, Question 14.
22. Is it required to convert the value of the award into the

local currency?
It is not mandatory to convert the value of the award into the local
currency, however this is feasible for understanding the value of the award.
23. Can the enforcing court stay the enforcement

proceedings pending the outcome of proceedings to set
aside the award at the seat of arbitration? If so, will the

court order the party seeking the stay to provide security?
The enforcement proceedings can be allowed by the court only a er the

time limit for making an application to set aside the arbitral award has
elapsed, or the application has been refused by the court. In case the
execution application is filed before the time limit then the enforcement
proceedings will be stayed until the decision for setting aside the award is
finally made.
Actual enforcement
24. What is the enforcement procedure when a declaration

of enforceability is granted?
See Enforcement of judgments in India, Question 16.
25. Can defendants oppose the actual enforcement

procedure, and if so, on what grounds/defences?
See Question 5.
Proposals for reform
26. Are any changes to the law currently under

consideration or being proposed?
Recently the Indian Union Cabinet has approved the proposed

amendments to the Arbitration and Conciliation Act 1996. The
amendments will soon be discussed and debated in both Houses of Indian
Parliament.
Online resources
India Code (the India Code Information System)

W http://indiacode.nic.in
Description. This website contains all the central acts of

Parliament from 1836 onwards. The website contents are
published and managed by the Legislative Department, Ministry of
Law and Justice, Government of India. The website is in English
and all the legislation is in English.
Contributor profiles
C Muralidhara, Managing Partner
Murali & Co. Advocates

T +91-80-41515161
F +91-80-41510421
E murali@muraliandco.com
Professional qualifications. National Law School of India

University, 1996.
Areas of practice. Commercial and corporate contracting; HR;

company law; real estate and all matter relating to litigation in
company matters, indirect taxes, intellectual property matters and
commercial arbitration.
Suman Katarki, Partner

T +91-80-41515161
F +91-80-41510421
E suman@muraliandco.com
Professional qualifications. National Law School of India

University, 1996.
Areas of practice. Commercial and corporate contracting; HR;

company law; indirect taxes and intellectual property.
Sony Bhatt, Senior Associate

T +91-80-41515161
F +91-80-41510421
E sony@muraliandco.com
Professional qualifications. Government Law College, Mumbai

University, 2009
Areas of practice. Litigation; corporate; commercials; and

intellectual property.
Non-professional qualifications. Bachelors of Science (Bio-

chemistry), Mumbai University, 2006
Languages. English, Hindi, German, Marathi
Professional associations/memberships. Member of Supreme

Court Bar Association.
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06/01/2018 Enforcement of arbitral awards in India: overview | Practical Law

Enforcement of arbitral awards in India: overview

and preliminary proceedings; applicable conventions; enforcing awards; Jurisdiction

For more information on enforcement of judgments in India visit

This Q&A is part of the Enforcement of Judgments and Arbitral Awards in

Enforcement of arbitral awards

Definitions and preliminary proceedings

1. What is the definition of an arbitral award in your

Arbitral award means the decision of an arbitral tribunal, whether in a

2. Are decisions in preliminary/provisional proceedings

A preliminary/provisional award passed by an arbitral tribunal which may

3. What conventions is your jurisdiction a contracting party

India is a party to the UN Convention on the Recognition and Enforcement

India is also a party to the Geneva Protocol on arbitration clauses of 1923,

4. What is the applicable statutory framework for

5. What are the grounds for refusing enforcement?

The applicant was under some incapacity.

The composition of the arbitral tribunal or the arbitral procedure was:

not in accordance with the agreement of the parties, unless such an

not in accordance with the AC Act.

The subject-matter of the dispute is not capable of settlement by

The arbitral award is in conflict with the public policy of India.

The parties were under some incapacity.

The composition of the arbitral authority or the arbitral procedure was

The subject matter of the dispute is not capable of settlement by

The award is contrary to the public policy of India.

6. Is the enforcing court required to examine the refusal

The subject matter of the dispute is not capable of settlement by

The award is contrary to the public policy of India.

7. What is the e ect of pending challenge proceedings in

8. What types of arbitral awards are enforceable?

Awards containing injunctions ordering or prohibiting the

Decisions or awards by arbitral tribunals (including

9. Can parties seek to enforce only part of the award?

Parties can seek to enforce only part of the award.

10. Are any class of awards excluded from recognition and

If the award is found to be in violation of the conditions set out in Question

11. Will service that does not conform to the requirements

12. What methods of service are not acceptable against

13. Which country's public policy applies? Does the court

The public policy of India applies to both domestic and internatio

14. In which cases and against which awards has the

The fundamental policy of Indian law.

The interests of India.

The justice or morality.

15. What is the procedure for enforcing arbitral awards?

Ex parte or on notice. Notice is issued to the defendant at first instance.

Applicable court. An application can be filed before the principal civil

Limitation period. The limitation period is the same as for civil

Recourse. Appeals can be filed in the court of appeal as stated in the

Ex parte or on notice. At first instance, the respondent is notified of the

Limitation period. The limitation for filing enforcement proceedings for

Timing. The procedure should take (ideally) around six months.

17. What are the documentary requirements for

An original award or copy of the award duly authenticated.

The original arbitration agreement or duly certified copy of this.

Such evidence as may be necessary to prove that the award is a foreign

18. Is it required to translate the award into the language of

19. What is the format of the application for a declaration of

An application is filed before the court of the competent jurisdiction

20. What information must be included in the application

Facts and legal grounds

21. Is it possible to request the enforcing court for