An arbitral award is equivalent to a court decree. Section 36 of the Arbitration and Conciliation Act 1996 provides for enforcement of domestic arbitral awards. For foreign awards, Part II of the Act and the New York Convention 1958 govern enforcement. India is a signatory to the New York Convention.
Enforcement of Domestic Awards: Section 36
A domestic arbitral award is enforceable as if it were a decree of the court under the Code of Civil Procedure. Process:
- Expiry of time limit for filing Section 34 application (3 months from award)
- If no Section 34 challenge filed: Award enforceable immediately
- If Section 34 filed: Award not automatically stayed — court must expressly stay on application
- For stay: Court must be satisfied that challenge has merit and balance of convenience favors stay
- Mandatory deposit: If award is for payment of money, unconditional stay cannot be granted without deposit of award amount (2015 amendment)
Amendment 2015: Key Change in Automatic Stay
Pre-2015, filing a Section 34 challenge automatically stayed enforcement. Post-2015 amendment: no automatic stay. The award creditor can proceed with enforcement even during pending Section 34 proceedings unless the court explicitly stays enforcement. BCCI v. Kochi Cricket Pvt. Ltd. (2018 SC) confirmed this prospective application.
Execution as Decree
Once enforceable, the award holder applies for execution in:
- District Court where award was made, or
- District Court where assets are located
All execution mechanisms of CPC apply: attachment of property, receiver appointment, garnishee order, etc.
Foreign Award Enforcement: New York Convention
Foreign awards from countries that are signatories to the New York Convention 1958 are enforceable in India under Part II of the Arbitration Act (Sections 44-52):
- Award holder files certified copy of award + original arbitration agreement (or certified copies)
- Filed in High Court having jurisdiction
- Award is enforced as if it were a court decree unless grounds for refusal are established
Grounds for Refusing Enforcement: Section 48
A foreign award can be refused enforcement if:
- Party to the agreement incapacitated under applicable law
- Arbitration agreement invalid under applicable law
- Party not given proper notice of proceedings or unable to present case
- Award on matters beyond scope of submission to arbitration
- Composition of arbitral authority or procedure not as per agreement
- Award not yet binding or set aside by competent authority of country where made
- Subject matter not capable of settlement by arbitration under Indian law
- Enforcement contrary to public policy of India
Narrow Construction of "Public Policy"
Indian courts have gradually narrowed the public policy ground for refusing award enforcement:
- Renusagar (1994): Public policy = fundamental policy of Indian law, interests of India, justice/morality
- ONGC v. SAW Pipes (2003): Expanded public policy to patently illegal awards
- Phulchand (2011): Narrowing
- BALCO (2012): Distinguished domestic and foreign award policy grounds
- Post-2015 amendments: Public policy for foreign awards limited to: fraud, fundamental policy of India, conflict with basic notions of morality/justice
Geneva Convention Awards
Awards from countries that are parties to the Geneva Convention but not the New York Convention are enforceable under Sections 53-60 of the Arbitration Act (Part III).
Comparison: Domestic vs Foreign Award Enforcement
| Aspect | Domestic Award | Foreign Award |
|---|---|---|
| Governing section | Section 36 (Part I) | Sections 44-52 (Part II) |
| Challenge window | Section 34 application: 3 months | Section 48 defense |
| Forum | District Court | High Court |
| Grounds for refusal | Section 34 — wider grounds | Section 48 — limited grounds |