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Section 57, Arbitration & Conciliation Act 1996: Conditions For Enforcement Of Foreign Awards

Section 57 (Conditions for enforcement of foreign awards) is under Chapter II (Geneva Convention Awards) of the Part II (Enforcement Of Certain Foreign Awards) of the Arbitration and Conciliation Act, 1996.

The contents of the section  is reproduced hereunder:—

(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 1.—For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,—
 (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or
 (ii) it is in contravention with the fundamental policy of Indian law; or
 (iii) it is in conflict with the most basic notions of morality or justice.

Explanation 2.—For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute.

(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 whom 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 on 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.

Extra Notes for Readers

(1) Section 57 was amended by the Arbitration and Conciliation (Amendment) Act, 2015 (w.e.f. 23 Oct 2015), as follows:

i. For the earlier 'Explanation' to sub-section (1), the two 'Explanations' mentioned hereinabove was substituted.

This page was last updated on 31st December, 2017.

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