ABC Ltd., an Indian company, enters into a contract with XYZ Corp., a company incorporated in the United States. A dispute arise regarding the delivery of goods and the matter is referred to international arbitration. Th
CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · June 2026
ABC Ltd., an Indian company, enters into a contract with XYZ Corp., a company incorporated in the United States. A dispute arise regarding the delivery of goods and the matter is referred to international arbitration. The arbitral tribunal issues a foreign award in favour of XYZ Corp. When XYZ Corp. approaches the Indian courts for enforcement of the foreign award under the Arbitration and Conciliation Act, 1996, ABC Ltd. opposes it, claiming that certain conditions for enforcement under Section 48 of the Act have not been complied with. Explain the conditions for enforcement of foreign awards under Section 48 of the Arbitration and Conciliation Act, 1996.
Answer & Explanation:
Section 48 of the Arbitration and Conciliation Act, 1996, enumerates the conditions for enforcement of foreign awards and provides that the party, against whom the award is invoked, may use one or more of the following grounds for the purpose of opposing enforcement of a foreign award, namely, - the parties to the agreement referred to in section 44 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 the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or 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 matter 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 enforced; or 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 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. Enforcement of an arbitral award may also be refused if the Court finds that: the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or the enforcement of the award would be contrary to the public policy of India.
Topics: Arbitration and Conciliation Act, 1996
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