Process of Executing Arbitral Award in India

Introduction

An arbitral award is a final and binding decision made by an arbitral tribunal in a dispute between two or more parties. In India, the Arbitration and Conciliation Act, 1996 (the "Act") sets out the procedure for the enforcement of arbitral awards.

Enforcement of Domestic Awards

A domestic award is an award made in India in accordance with the Act. Section 36 of the Act provides that a domestic award shall be enforced under the Code of Civil Procedure, 1908 (the "CPC") just as if it were a decree of the court. This means that the execution of a domestic award is governed by the same rules and procedures as the execution of a court decree.

The first step in enforcing a domestic award is to file an execution petition with the court having jurisdiction over the assets of the judgment debtor. The execution petition must be accompanied by a copy of the award and a certificate of its authenticity. The court will then issue a warrant of execution, which will enable the award creditor to seize and sell the judgment debtor's assets in order to satisfy the award.

Enforcement of Foreign Awards

A foreign award is an award made outside India in accordance with the law of the country where it was made. Section 44 of the Act provides that a foreign award may be enforced in India if it is enforceable in the country where it was made.

The enforcement of a foreign award is governed by the provisions of the Act and the CPC. The first step in enforcing a foreign award is to file an application for its recognition and enforcement with the court having jurisdiction. The application must be accompanied by a copy of the award and a certificate of its authenticity.

The court will then consider whether the award is enforceable in India. The court will consider factors such as whether the award was made in accordance with the law of the country where it was made, whether the parties to the award had submitted to the arbitration, and whether the award is contrary to public policy in India.

If the court finds that the award is enforceable, it will issue a decree of enforcement. The award creditor can then enforce the decree in the same way as a domestic award.

Conclusion

The enforcement of arbitral awards in India is governed by the Arbitration and Conciliation Act, 1996. The process of enforcement is similar to the enforcement of court decrees, and the court will consider factors such as the validity of the award and the public policy of India before enforcing it.