Thursday, 6 March 2014

Principle for execution of foreign award



Escorts Ltd. v. Universal Tractor Holding LLC, (2013) 10 SCC 717

Arbitration and Conciliation Act, 1996
Ss. 44, 46, 48 & 49 and Sch. I - Execution of foreign award - Award, if to be confirmed under US law before its
execution in India - New York Convention awards - Double exequatur (i.e. double official recognition) - Principle of -
Inapplicability - Held, rule of double exequatur or double official recognition is dispensed with in 1996 Act by adoption of
New York Convention - Hence, confirmation of arbitration award by courts of the country where arbitration took place that
said award was enforceable in that country, is not required for enforcement of New York Convention awards in India -

With consent of parties, foreign court (Wake Country Superior Court in the State of North Carolina, USA) referred
disputes between parties to arbitration - As arbitration award was passed in USA against appellant (Indian company),
respondent filed petition in India for execution of award - Objection of appellant that unless award is confirmed by foreign
court per S. 9 of Federal Arbitration Act of US (as per double exequatur principle), award is not executable in India since
not binding, dismissed by High Court - Sustainability - On facts, held, under US law issue notice of three months is
imperative if a party wants to dispute award, which was not complied with by petitioner - Further, consent order for
referring disputes to arbitration clearly recorded that award given by arbitrator is final and binding on parties - Also, rule of
double exequatur is dispensed with in view of changed law by adoption of provisions of New York Convention by 1996
Act - Hence, held, no error in order of High Court rejecting objections - Appeal dismissed, (

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