Paper :Dispute of enforcement of foreign arbitral awards in India and its impact on international trade

Author 1: Anshuman Roy

Abstract :

With the promotion of International Trade among different countries apart from presence of agreement, a credence has to be establish among the parties that in case any dispute arises, in spite of having variance in the domestic laws of both the parties, the dispute will be resolved on the basis on principle of justice. Arbitration is considered as a step towards privatization of such justice. Arbitration clauses are most common in international commercial contracts under which parties comes into a private agreement for settlement of any kind of dispute which will be based on the law opted by the parties. The agreement further covers the number of arbitrators to form tribunal, procedure for appointment and removal of arbitrator and competence of tribunal to rule on its own jurisdiction. Since in International trade parties involve are from different nations with different domestic laws, there was a need for a uniform law that could be followed by each and every Country. Therefore to bring such uniformity Geneva Convention was passed in 1927 especially for the enforcement of the foreign award which was followed up by the New York Convention 1958. India has also ratified New Convention under Arbitration and Conciliation Act 1996 for enforcement of Foreign Awards. The New York Convention was introduced in 1996 Act so as international traders do not suffer problem while enforcing the awards and they can get easy Judicial Remedy but from the time of enactment of 1996 Act the scenario has been opposite. Due to various Judicial Pronouncements and the framework of the 1996 Act especially Part II of the act, it has become frantic job for International Traders to enforce the award in India or get any remedy. Therefore the article will deal with the major loopholes in Arbitration Laws of India for enforcing of foreign awards in past decades, the reformative steps taken with 2015 Ordinance and its effect on the International Trade and Commercial relations among countries.

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Refrence :

1. Dr. Ashwinie Kumar Bansal, Arbitration Awards, Law on setting aside and execution of arbitration awards,

3. VII(2)- Protocol on Arbitration Clauses of and the Geneva Convention on the Execution of Foreign Arbitral Awards
of 1927 shall cease to have effect between Contractin States on their becoming bound and to the extent that they
become bound, by this Convention, 1923.
4. Article 1(1) of the New York Convention
5. This principle is known as principle of reciprocity which was followed under the Geneva Convention, according to
which award made in the territory must be a jurisdiction of any one of contracting state. The difference has been
discussed in Gas Authority of India Ltd. vs. SPIE CAPAG, S.A., 1994 (1) Arbi LR 429
6. Guru Nanak Foundation v. Rattan Singh and Sons 4 SCC 634, It was also observed in the case of Food Corporation
of India v. Joginderpal Mohinerpal. 1989 AIR 1263, 1981.
7. Bharat Aluminum Co. v. Kaiser Aluminum Technical Service, Inc., 9,649, SCC, SC, 2012.

Keywords: International Trade impact on international trade principle of justice DOI

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