Question

Section $48$ lays down the provisions for:

• A. foreign award
• B. power of judicial authority to refer parties to arbitration
• C. binding effect of foreign award
• D. conditions for enforcement of foreign awards

Answer 1

The correct option is D conditions for enforcement of foreign awards

Section 48 of the Arbitration and Conciliation act, 1996, provides for conditions required for the enforcement of foreign award. The conditions include:

A foreign award may not be enforced in India if it is proved by the party against whom it is sought to be enforced that:

• the parties to the agreement were under some incapacity to perform under the law to which they were subjected to and in the absence of any mention of such law, the law of the country where the award was made, i.e. the place of arbitration, or,
  
• the agreement was invalid under the law to which the parties have subjected it and in the absence of any mention of such law, the law of the country where the award was made, or,
  
• a fair trial was not conducted by the tribunal passing the award by failing to adhere to the principles of fair hearing, or,
  
• the award passed was partly or wholly beyond the scope of the arbitration agreement, in which case the part of the award exceeding the scope of submission to arbitration may be separated from rest of the award, or,
  
• the composition of the arbitral tribunal or authority and/or the procedure of its appointment was not in accordance with the arbitration agreement or in the absence of any mention of the same in the agreement, it was not in accordance with the law of the country where the arbitration proceedings were held, i.e. the place of arbitration, or,
  
• the award has not yet been made binding on the parties or has been set aside or suspended by a competent authority of the country which is either the place or seat of arbitration.
• the settlement of the award is not as per Indian arbitration laws, or the enforcement of the award is contrary to the public policy of India.
• An award is said to be in conflict with the public policy of India if it has been affected by fraud or corruption; or it was in violation of the of the Act; or it was in contravention with the fundamental policy of Indian law or basic principles of morality or justice.