Arbitration
& Conciliation Act, 1996
SCHEDULE I: CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL
AWARDS
[Section
44]
ARTICLE
I
1. This Convention shall apply
to the recognition and enforcement of arbitral awards made in the territory
of a State other than the State where the recognition and enforcement
of such awards are sought, and arising out of differences between persons,
whether physical or legal. It shall also apply to arbitral awards not
considered as domestic awards in the State where their recognition and
enforcement are sought.
2. The term "arbitral awards"
shall include not only awards made by arbitrators appointed for each case
but also those made by permanent arbitral bodies to which the parties
have submitted.
3. When signing, ratifying or
acceding to this Convention, or notifying extension under article X hereof,
any State may on the basis of reciprocity declare that it will apply the
Convention to the recognition and enforcement of awards made only in the
territory of another Contracting State. It may also declare that it will
apply the Convention only to differences arising out of legal relationships,
whether contractual or not, which are considered as commercial under the
national law of the State making such declaration.
ARTICLE
II
1. Each Contracting State shall
recognise an agreement in writing under which the parties undertake to
submit to arbitration all or any differences which have arisen or which
may arise between them in respect of defined legal relationship, whether
contractual or not, concerning a subject-matter capable of settlement
by arbitration.
2. The term "agreement in
writing" shall include an arbitral clause in a contract or an arbitration
agreement, signed by the parties or contained in an exchange of letters
or telegrams.
3. The court of a Contracting
State, when seized of an action in a matter in respect of which the parties
have made an agreement within the meaning of this articles, shall, at
the request of one of the parties, refer the parties to arbitration, unless
it finds that the said agreement is null and void, inoperative or incapable
of being performed.
ARTICLE
III
Each Contracting State shall recognize
arbitral awards as binding and enforce them in accordance with the rules
of procedure of the territory where the award is relied upon, under the
conditions laid down in the following articles. There shall not be imposed
substantially more onerous conditions or higher fees or charges on the
recognition or enforcement of arbitral awards to which this Convention
applies than are imposed on the recognition or enforcement of domestic
arbitral awards.
ARTICLE
IV
1. To obtain the recognition and
enforcement mentioned in the preceding article, the party applying for
recognition and enforcement shall, at the time of the application, supply-
(a) the duly authenticated original
Awarded or a duly certified copy thereof;
(b) the original agreement referred
to in article II or a duly certified copy thereof.
2. If the said award or agreement
is not made in an official language of the country in which the award
is relied upon, the party applying for recognition and enforcement of
the award shall produce a translation of these documents into such language.
The translation shall be certified by an official or sworn translator
or by a diplomatic or consular agent.
ARTICLE
V
1. Recognition and enforcement
of the award may be refused, at the request of the party against whom
it is invoked, only if that party furnishes to the competent authority
where the recognition and enforcement is sought, proof that,-
(a) the parties to the agreement
referred to in article II were, under the law applicable to them, under
some incapacity, or the said agreement is not valid under the law to which
the parties have subjected it or, failing any indication thereon, under
the law of the country where the award was made; or
(b) the party against whom the
award is invoked was not given proper notice of the appointment of the
arbitrator or of the arbitration proceedings or was otherwise unable to
present his case; or
(c) the award deals with a difference
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, provided that, if the decisions on matters
submitted to arbitration can be separated from those not so submitted,
that part of the award which contains decisions on matters submitted to
arbitration may be recognised and enforced; or
(d) 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; or
(e) 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.
2. Recognition and enforcement
of an arbitral award may also be refused if the competent authority in
the country where recognition and enforcement is sought finds that,-
(a) the subject-matter of the
difference is not capable of settlement by arbitration under the law of
that country; or
(b) the recognition or enforcement
of the award would be contrary to the public policy of that country.
ARTICLE
VI
If an application for the setting
aside or suspension of the award has been made to a competent authority
referred to in article V(1)(e), the authority before which the award is
sought to be relied upon may, if it considers it proper, adjourn the decision
on the enforcement of the award and may also, on the application of the
party claiming enforcement of the award, order the other party to give
suitable security.
ARTICLE
VII
1. The provisions of the present
Convention shall not affect the validity of multilateral or bilateral
agreements concerning the recognition and enforcement of arbitral awards
entered into by the Contracting States nor deprive any interested party
of any right he may have to avail himself of an arbitral award in the
manner and to the extent allowed by the law or the treaties of the country
where such award is sought to be relied upon.
2. The Geneva Protocol on Arbitration
Clauses of 1923 and the Geneva Convention on the Execution of Foreign
Arbitral Awards of 1927 shall cease to have effect between Contracting
States on their becoming bound and to the extent that they become bound
by this Convention.
ARTICLE
VIII
1. This Convention shall be open
until 3lst December, 1958 for signature on behalf of any Member of the
United Nations and also on behalf of any other State which is or hereafter
becomes member of any specialised agency of the United Nations, or which
is or hereafter becomes a party to the Statute of the International Court
of Justice, or any other State to which an invitation has been addressed
by the General Assembly of the United Nations.
2. This Convention shall be ratified
and the instrument of ratification shall be deposited with the Secretary-General
of the United Nations.
ARTICLE
IX
1. This Convention shall be open
for accession to all States referred to in article VIII.
2. Accession shall be effected
by the deposit of an instrument of accession with Secretary-General of
the United Nations.
ARTICLE
X
1. Any State may, at the time
of signature, ratification or accession, declare that this Convention
shall extend to all or any of the territories for the international relations
of which it is responsible. Such a declaration shall take effect when
the Convention enters into force for the State concerned.
2. At any time thereafter any
such extension shall be made by notification addressed to the Secretary-General
of the United Nations and shall take effect as from the ninetieth day
after the day of receipt by the Secretary-General of the United Nations
of this notification, or as from the date of entry into force of the Convention
for the State concerned, whichever is the later.
3. With respect to those territories
to which this Convention, is not extended at the time of signature, ratification
or accession, each State concerned shall consider the possibility of taking
the necessary steps in order to extend the application of this Convention
to such territories, subject, where necessary for constitutional reasons,
to the consent of the governments of such territories.
ARTICLE
XI
In the case of a federal or non-unitary
State, the following provisions shall apply,-
(a) with respect to those articles
of this Convention that come within the legislative jurisdiction of the
federal authority, the obligations of the federal Government shall to
this extent be the same as those of Contracting States which are not federal
States;
(b) with respect to those articles
of this Convention that come within the legislative jurisdiction of constituent
States or provinces which are not, under the constitutional system of
the federation, bound to take legislative action, the federal Government
shall bring such articles with a favourable recommendation to the notice
to the appropriate authorities of constituent States or provinces at the
earliest possible moment;
(c) a federal State Party to this
Convention shall, at the request of any other Contracting State transmitted
through the Secretary-General of the United Nations, supply a statement
of the law and practice of the federation and its constituent units in
regard to any particular provisions of this Convention, showing the extent
to which effect has been given to the provision by legislative or other
action.
ARTICLE
XII
1. This Convention shall come
into force on the ninetieth day following the date of deposit of the third
instrument of ratification or assession.
2. For each State ratifying or
acceding to this Convention after the deposit of the third instrument
of ratification or accession, this Convention shall enter into force on
the ninetieth day after deposit by such State of its instrument of ratification
or accession.
ARTICLE
XIII
1. Any Contracting State may denounce
this Convention by a written notification to the Secretary-General of
the United Nations. Denunciation shall take effect one year after the
date of receipt of the notification by the Secretary-General.
2. Any State which has made a
declaration or notification under article X may, at any time thereafter,
by notification to the Secretary-General of the United Nations, declare
that this Convention shall cease to extend to the territory concerned
one year after the date of the receipt of the notification by the Secretary-General.
3. This Convention shall continue
to be applicable to arbitral awards in respect of which recognition or
enforcement proceedings have been instituted before the denunciation takes
effect.
ARTICLE
XIV
A Contracting
State shall not be entitled to avail itself of the present Convention
against other Contracting States except to the extent that it is itself
bound to apply the Convention.
ARTICLE
XV
The Secretary-General of the United
Nations shall notify the State contemplated in article VIII of the following:-
(a) signatures and ratifications
in accordance with article VIII;
(b) accessions in accordance with
article IX;
(c) declarations and notifications
under articles I, X and XI;
(d) the date upon which this Convention
enters into force in accordance with article XII;
(e) denunciations and notifications
in accordance with article XIII.
ARTICLE
XVI
1. This Convention, of which the
Chines, English, French, Russian and Spanish texts shall be equally authentic,
shall be deposited in the archives of the United Nations.
2. The Secretary-General of the
United Nations shall transmit a certified copy of this Convention to the
States contemplated in article XIII. |
