Enforcement Of Arbitration Awards In India (Part 2)

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Enforcement Of Arbitration Awards In India (Part 2)

Conditions for enforcement:

A foreign award defined:

In order to be considered as a foreign award, (for the

purposes of the Act) the same must fulfil two requirements.

First it must deal with differences arising out of a legal

relationship (whether contractual or not) considered as

commercial under the laws in force in India. The expression

"commercial relationship" has been very widely

interpreted by Indian courts. The Supreme Court in the case of

R.M. Investments Trading Co. Pvt. Ltd. v. Boeing Co. &

Anr.35 while construing the expression

"commercial relationship" held:

"The term "commercial" should be given a

wide interpretation so as to cover matters arising from all

relationships of a commercial nature, whether contractual or

not&&."

The second requirement is more significant and that is that

the country where the award has been issued must be a country

notified by the Indian Government to be a country to which the

New York Convention applies. 36Only a few countries

have been notified so far and only awards rendered therein are

recognised as foreign awards and enforceable as such in India.

The countries ...

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