Due to expansion ofinternational trade in recent years, the business world faces lot of disputesor differences between them.
These differences are arising from internationalCommercial transactions. In early times, courts taken lot of time for makesettlement of dispute but now a days if any dispute arose between the partiesat any level whether is contractual ornot. It would be settled within few weeks or months. Dispute should be settledby that country, where it is occurred. On contrary, if matters forward to othercountries for make settlement between parties, it is very complicated,expensive and time wasting process. Therefore, most of businessman chooses apath of arbitration for quicker and cheaper remedy.
Arbitration Act madereflection upon legislative enactments, international treaties and other measures,they shall be arbitration being solid in legal arena.India plays vital rolein globalization countries. The level of increasing globalization had raisedinternational business disputes too also. Therefore, it is foremost duty offoreign Arbitral Institutions to render a foreign arbitral award to parties.Foreign judgment can be prevailed in India by filing of proceedings in executionor by suit made by parties in it. An Arbitral award is made by arbitraltribunal on the determination of dispute between the parties. It is consideredmuch beneficial method for the resolution of dispute between parties atcommercial level. It is easier method to give foreign award in foreign countryinstead of case filed under court.
All kinds of award shall be regulated andinvoked by Arbitration & Conciliation Act, 1996 whether it may be domestic orforeign award. Foreign arbitral award shall be enforced through New YorkConvention and Geneva Convention & Non Arbitrable awards executed in Indiaunder the sake of equity, Justice and conscience. Earlier arbitration Act hadthree kinds: 1. Arbitration Act, 1940 2.
Enforcement of foreign award betweentwo statues one dealt with Geneva Convention 1937, New York Convention awards1961 respectively. The Geneva ConventionThere are various differencesor disputes between one country to another, at international level. There shallbe number of bilateral treaties between nations. Parties want to resolve theirconflict by foreign award after First World War have been the Geneva Protocolon Arbitration clauses of 1923. The Geneva Convention on the execution offoreign Arbitral Awards of 1927 and Untied Nation Convention pertains toRecognition and enforcement of foreign arbitral awards of 1958.Different contractingstates shall make an application to arbitral tribunal for resolution of disputeat commercial level.
Dispute may be existing or future in nature. Contracting partiesmay state their limits and obligations relating to commercial contracts. Theycan refer their matter to the arbitrator with their mutual consent.
If a suit institutedunder court, court can refer parties to the arbitration if parties want toproceed their matters through the arbitration. If the conditions which aremandatory for arbitration agreement does not fulfilled, it shall be declared nullor void and inoperative. This convention is supplementary to Protocol, awardsshould also be made under this protocol.
State parties can only become a partyto the convention. Both contraction parties shall be binding during the arbitrationagreement. Awards can be executed in other territory on following conditions:An arbitral award wasmade according to arbitration agreement which is valid under the law.
Award iscapable of being made by one country by arbitration agreement. Parties must beagreed with the award rendered by Arbitral Tribunal. The award shall be made byarbitrator has binding in nature and no proceedings shall be instituted againstthe award. It can be challenged under some prescribed time period, afterwardsparty loose his right. The award must be made in favor of public policy.
It shouldnot be against the public policy of India. On other hand, court can also makerefusal for enforcement of an award if it finds that: – 1. The award is not capable of being given.2.
Party has not aware about the institutionof case against himself.3. Party did not given sufficient notice toother party4. The award made by an arbitrator shouldbe beyond its limits or opposed to public policy of India, it is against theterms and conditions of agreement.
Party can seek for annulment of an awardfrom the court.There are variousgrounds where Geneva Convention has been criticized.a. If there is confusion about thejurisdiction of contracting states which defines the scope and application ofparties. It violates the provision of international arbitration law. Jurisdictionof state can be challenged by either of contracting parties. b. One party wants to make enforcement ofan award in one country but it is difficult to prove that arbitral tribunal wasestablished and governed by law of another country so that award has becomefinal.
c. Party makes objection and creates hurdlefor enforcement of arbitral award. One party seeks to execution of an award butother party made refusal for execution on any ground.