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Section 44 of the Arbitration and Conciliation Act, 1996: foreign award under the New York Convention

In Chapter I of Part II, a "foreign award" is an arbitral award on differences between persons arising out of legal relationships, contractual or not, considered as commercial...

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Arbitration
Published
October 2, 2026
Last updated
Oct 4, 2026
Reading time
8 min
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Last updated: October 2026Applies to: FY 2026-27 (AY 2027-28)Verified against: Government sources

Section 44 is the gateway to Chapter I of Part II. It defines "foreign award" for that Chapter by four tests: the relationship must be commercial under Indian law, the award must have been made on or after the 11th day of October, 1960, it must be made under a written arbitration agreement to which the Convention in the First Schedule applies, and it must be made in a territory the Central Government has declared by notification. This article reads the section as per the India Code consolidated text consulted.

Where section 44 sits

The text consulted prints the heading "Part II: Enforcement of certain foreign awards" and, beneath it, "Chapter I: New York Convention Awards". Section 44 is the first section of that Chapter, headed "Definition". The Chapter runs from section 44 to section 52. Chapter II, on Geneva Convention awards, starts at section 53 and has its own definition; see our article on sections 53 and 54. Section 52 says Chapter II does not apply to foreign awards to which Chapter I applies.

For the wider picture of foreign awards in India, our guide on enforcing a foreign arbitral award in India and the guide to international commercial arbitration under Part II are general overviews of this part of the Act. If you hold a foreign award and want to know where you stand, our arbitration support team can read the award, the agreement and the notifications with you.

The four elements of the definition

The definition is introduced by "In this Chapter, unless the context otherwise requires". It therefore applies to sections 44 to 52 only.

ElementWords as printed
Subject"an arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India"
Date"made on or after the 11th day of October, 1960"
Clause (a): agreement"in pursuance of an agreement in writing for arbitration to which the Convention set forth in the First Schedule applies"
Clause (b): territory"in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made may, by notification in the Official Gazette, declare to be territories to which the said Convention applies"

Clauses (a) and (b) are joined by "and". On the words, both must be met.

"Considered as commercial under the law in force in India"

The test is whether the legal relationship is "considered as commercial" under Indian law. The section does not define "commercial" and does not list examples. The text consulted is silent, so this article gives no list. The same phrase appears in the definition of "international commercial arbitration" in section 2(1)(f), which also speaks of "legal relationships, whether contractual or not, considered as commercial under the law in force in India"; see our article on section 2.

The date: 11th day of October, 1960

An award made before that date does not fall within the definition. The date is printed as "11th day of October, 1960" and this article reads it no further.

The First Schedule Convention

Clause (a) requires an agreement "in writing" to which the Convention in the First Schedule applies. The First Schedule prints the Convention on the Recognition and Enforcement of Foreign Arbitral Awards in Articles I to XVI. Article I of the First Schedule deals with the scope of the Convention; Article II(2) says "agreement in writing" includes an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams. Our article on the First Schedule goes through the Articles. The text consulted prints "ARTICLE 1" with a digit and "ARTICLE 1X" for Article IX; these are printing slips and are read as Articles I and IX.

The notified territory

Clause (b) depends on a notification in the Official Gazette by which the Central Government, "being satisfied that reciprocal provisions have been made", declares territories to which the Convention applies. Section 44 does not list the territories. No notification is in the source for this article, and it does not say which countries or territories are covered. It also does not say whether India has made any reservation or declaration under the Convention. To find out whether a particular seat is covered, a reader needs the notification itself.

What a "foreign award" gets in Chapter I

Once an award meets the definition, the later sections of Chapter I apply to it:

SectionSubjectOur article
45Judicial authority to refer parties to arbitrationSection 45
46When the foreign award is bindingSections 46 and 47
47Evidence to be producedSections 46 and 47
48Conditions for enforcementSection 48
49 to 52Enforcement as a decree, appeals, saving, Chapter II not to applySections 49 to 52

Section 45 refers to "an agreement referred to in section 44", so the definition also governs the agreements to which section 45 applies.

How a foreign award differs from a domestic award

Section 2(7) says an arbitral award made under Part I "shall be considered as a domestic award". Part I applies, under section 2(2), where the place of arbitration is in India, subject to the proviso to section 2(2): subject to an agreement to the contrary, sections 9 and 27 and clause (a) of sub-section (1) and sub-section (3) of section 37 also apply to an international commercial arbitration even if the place of arbitration is outside India, "and an arbitral award made or to be made in such place is enforceable and recognised under the provisions of Part II of this Act". Section 44 states the definition for Chapter I. The text consulted does not state in one place how the two categories relate beyond those words, and this article adds nothing.

An example

Meridian Fabrics Pvt Ltd, an Indian company, sells cloth to a buyer abroad under a written contract with an arbitration clause. An award is made in a foreign country in the buyer's favour in 2024 on a non-payment dispute. To ask whether Chapter I applies, Meridian checks four things against section 44: is the relationship commercial under Indian law; was the award made on or after 11 October 1960; was it made under an agreement in writing to which the First Schedule Convention applies; and is the country where the award was made a territory declared by the Central Government's notification. The first two are visible from the contract and the award. The last two need the First Schedule and the notification, and the notification is not in the source.

Need help with a foreign award?

Whether an award is a "foreign award" decides which part of the Act applies to it. Our arbitration support service can check the four tests and the notification for your award and advise on the next step.

Key takeaways

  • Section 44 defines "foreign award" for Chapter I of Part II (sections 44 to 52).
  • The relationship must be considered as commercial under the law in force in India.
  • The award must be made on or after the 11th day of October, 1960.
  • It must be made under a written arbitration agreement to which the Convention in the First Schedule applies, and in a territory declared by notification in the Official Gazette.
  • No notification or list of territories is in the source.

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Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Section 44

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is a foreign award under section 44?

An arbitral award on differences arising out of legal relationships, whether contractual or not, considered as commercial under Indian law, made on or after 11 October 1960 under a written agreement to which the First Schedule Convention applies, in a territory notified by the Central Government.

Does it apply to awards made before 11 October 1960?

Not on the words of the definition, which require an award made on or after that date.

A pleading should state facts in the order a stranger would need to understand them.

— TaxClue Legal Desk

Section 44: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

An arbitral award on differences arising out of legal relationships, whether contractual or not, considered as commercial under Indian law, made on or after 11 October 1960 under a written agreement to which the First Schedule Convention applies, in a territory notified by the Central Government.

Not on the words of the definition, which require an award made on or after that date.

Section 44(b) depends on a notification by the Central Government. No notification is in the source, so this article names none.

The section says "considered as commercial under the law in force in India" and gives no definition or examples.

Yes. It prints the Convention in Articles I to XVI.

No. It only defines the term. Sections 45 to 52 deal with reference to arbitration, binding effect, evidence, enforcement conditions, decree, appeals and saving.