Execution of Foreign Award

The Indian courts would not be satisfied about the enforceability of the foreign award, if it is proved by the party against whom it is sought to be enforced that the parties to the agreement, under the law applicable to them, were under some incapacity, or the agrecment was not valid under the law to which the parties have subjected; or in the absence of any indication thereon, under the law of the place of arbitration; or there was no due compliance with rules of fair hearing; or the composition of the arbitral authority or its procedure was not in accordance with the agreement of the parties; or filing such agreement was not in accordance with the law of the place of arbitration; or 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 award will not be enforced in India if the court is satisfied that the subject-matter of the award is not capable of settlement by the arbitration under Indian law or the enforcement of the award is contrary to the public policy.

However, an appeal lies against the order of the court refusing to enforce the award to the next higher court. The Act of 1996 affords only a restrictive right to the courts in India to refuse enforcement of a foreign award and this is in accordance with the wishes of the international commercial community to the effect that judicial control on the award should be restricted to the barest minimum.