Arbitration
& Conciliation Act, 1996
CHAPTER II: GENEVA CONVENTION
AWARDS
53. Interpretation
In this
chapter "foreign award" means an arbitral award on differences
relating to matters considered as commercial under the law in force in
India made after the 28th day of July, 1924,-
(a)
in pursuance of an agreement for arbitration to which the Protocol set
forth in the Second Schedule applies, and
(b)
between persons of whom one is subject to the jurisdiction of some one
of such Powers as the Central Government, being satisfied that reciprocal
provisions have been made, may, by notification in the Official Gazette,
declare to be parties to the Convention set forth in the Third Schedule,
and of whom the other is subject to the jurisdiction of some other of
the powers aforesaid, and
(c)
in one of such territories as the Central Government, being satisfied
that reciprocal provisions have been made, may, by like notification,
declare to be territories to which the said Convention applies,
and
for the purposes of this chapter an award shall not be deemed to be final
if any proceedings for the purpose of contesting the validity of the award
are pending in the country in which it was made.
54. Power of judicial authority to refer parties to arbitration
Notwithstanding
anything contained in Part I or in the Code of Civil Procedure, 1908,
a judicial authority, on being seized of a dispute regarding a contract
made between persons to whom section 53 applies and including an arbitration
agreement, whether referring to present or future differences, which is
valid under that section and capable of being carried into effect, shall
refer the parties on the application of either of them or any person claiming
through or under him to the decision of the arbitrators and such reference
shall not prejudice the competence of the judicial authority in case the
agreement or the arbitration cannot proceed or becomes inoperative.
55. Foreign awards when binding
Any
foreign award which would be enforceable under this chapter shall be treated
as binding for all purposes on the persons as between whom it was made,
and may accordingly be relied on by any of those persons by way of defence,
set off or otherwise in any legal proceedings in India and any references
in this chapter to enforcing a foreign award shall be construed as including
references to relaying on an award.
56. Evidence
(1)
The party applying for the enforcement of a foreign award shall, at the
time of application produce before the court,-
(a)
the original award or a copy thereof duly authenticated in the manner
required by the law of the country in which it was made;
(b)
evidence proving that the award has become final; and
(c)
such evidence as may be necessary to prove that the conditions mentioned
in clauses (a) and (c) of sub-section (1) of section 57 are satisfied.
(2)
Where any document requiring to be produced under sub-section (1) is in
a foreign language, the party seeking to enforce the award shall produce
a translation into English certified as correct by a diplomatic or consular
agent of the country to which that party belongs or certified as correct
in such other manner as may be sufficient according to the law in force
in India.
Explanation:
In this section and all the following sections of this chapter, "court"
means the principal civil court of original jurisdiction in a district,
and includes the High Court in exercise of its ordinary original civil
jurisdiction, having jurisdiction over the subject-matter of the award
if the same had been the subject-matter of a suit, but does not include
any civil court of a grade inferior to such principal civil court, or
any court of small causes.
57. Conditions for enforcement of foreign awards
(1)
In order that a foreign award may be enforceable under this chapter, it
shall be necessary that-
(a)
the award has been made in pursuance of a submission to arbitration which
is valid under the law applicable thereto;
(b)
the subject-matter of the award is capable of settlement by arbitration
under the law of India;
(c)
the award has been made by the arbitral tribunal provided for in the submission
to arbitration or constituted in the manner agreed upon by the parties
and in conformity with the law governing the arbitration procedure;
(d)
the award has become final in the country in which it has been made, in
the sense that it will not be considered as such if it is open to opposition
or appeal or if it is proved that any proceedings for the purpose of contesting
the validity of the award are pending;
(e)
the enforcement of the award is not contrary to the public policy or the
law of India.
Explanation:
Without prejudice to the generality of clause (e), it is hereby declared,
for the avoidance of any doubt, that an award is in conflict with the
public policy of India if the making of the award was induced or effected
by fraud or corruption.
(2)
Even if the conditions laid down in sub-section (1) are fulfilled, enforcement
of the award shall be refused if the court is satisfied that,-
(a)
the award has been annulled in the country in which it was made;
(b)
the party against who it is sought to use the award was not given notice
of the arbitration proceedings in sufficient time to enable him to present
his case; or that, being under a legal incapacity, he was not properly
represented;
(c)
the award does not deal with the differences contemplated by or falling
within the terms of the submission to arbitration or that it contains
decisions of matters beyond the scope of the submission to arbitration:
PROVIDED
that if the award has not covered all the differences submitted to the
arbitral tribunal, the court may, if it thinks fit, postpone such enforcement
or grant it subject to such guarantee as the court may decide.
(3)
If the party against whom the award has been made proves that under the
law governing the arbitration procedure there is a ground, other than
the grounds referred to in clauses (a) and (c) of sub-section (1) and
clauses (b) and (c) of sub-section (2) entitling him to contest the validity
of the award, the court may, if it thinks fit, either refuse enforcement
of the award or adjourn the consideration thereof, giving such party a
reasonable time within which to have the award annulled by the competent
tribunal.
58. Enforcement of foreign awards
Where
the court is satisfied that the foreign award is enforceable under this
chapter, the award shall be deemed to be a decree of the court.
59. Appealable orders
(1)
An appeal shall lie from the order refusing,-
(a)
to refer the parties to arbitration under section 54; and
(b)
to enforce a foreign award under section 57,
to the
court authorised by law to hear appeals from such order.
(2)
No second appeal shall lie from an order passed in appeal under this section,
but nothing in this section shall affect or take away any right to appeal
to the Supreme Court.
60. Saving
Nothing
in this chapter shall prejudice any rights which any person would have
had of enforcing in India of any award or of availing himself in India
of any award if this chapter had not been enacted. |
