Conflicts of Law, Foreign Awards Under N Y Convention by Shubham

MATS Law School

“Conflict of Laws”

Project on: “Foreign Foreign Aw Awards ards unde underr New New Yo Yor 

Con!ention” SUBMITTED SUBMITTE D TO:

SUBMITTED SUBMITTE D BY:

Mr.Akash Sharma

Shubham Patel

Asst. Asst. Profes Professor sor

B.B.A B.B.A.LL .LL.B .B

MATS MATS Law School

Semester !th

MATS MATS U"#$ers#t%

MU&'BBALLB&( MU&'BBAL LB&(

AC"N#$L%&'%M%NT

)e** hereb%* wa"t %ou to k"ow that we tha"k our colle+e ,MATS )e ,MATS LA) S-OOL/ for 0ro$#1#"+ us w#th #"tellec #"tellectual tual a"1 coo0erat# coo0erat#$e $e facult% of -o"fl#ct -o"fl#ct of laws (Mr) Aash Shar*a+ who allotte1 us the 0ro2ect to0#c: , Foreign Awards under New Yor Con!ention / a"1 +a$e us the o00ortu"#t% to research o" the to0#c a"1 +a#" k"owle1+e a"1 comma"1 o$er #t. we woul1 also l#ke to tha"k our D#rector s#r &r) ')P) Tri,athi  for 0ro$#1#"+ $er% #"format#$e* full of k"owle1+e a"1 +reat $ar#et% $ar#et% of books #" the colle+e colle+e l#brar% l#brar%** at the same t#me we woul1 l#ke to tha"k the l#brar#a" Mr. A"#l Dewa"+a" to allow us to the refer the books a"1 s0e"1 am0le of t#me #" the l#brar%. 3ore#+" Awar1s u"1er 4ew York -o"$e"t#o" o" wh#ch 0ro$e1 to  be a boo" for us a"1 our 0ro2ect hel0e1 us a lot #" u"1ersta"1#"+ the bas#cs of the to0#c.  Next, we convey our sincere thanks and gratitude to my friends and family for rendering  constructive and valuable suggestions and comments that have helped a lot in improving the quality and content of the project and also helped us for completing the project in limited time  frame.

Tha"k Tha "k You You Shu-ha* Patel

 

B.B.A.LL.B

&%CLA.AT/#N

)e are here to 0rese"t 0ro2ect work e"t#tle1 “Foreign Awards under New Yor Con!ention” subm#tte1 to the MATS U"#$ers#t% #s the or#+#"al work 1o"e b% us u"1er the +u#1a"ce of  Mr)Aash Shar*a * MATS Law School* 5ullu* Ara"+* a"1 th#s 0ro2ect has "ot 0erforme1 the

 bas#s for the awar1 of a"% De+ree or 1#0loma a"1 s#m#lar 0ro2ect #f a"%. It6s for our 0erso"al #"terest a"1 k"owle1+e.

TA0L% #F C#NT%NTS S)No) 1 3 5 6 2 4  8

To,ic /ntroduction #ld laws The 'ene!a Con!ention The 'ene!a Treaties Criti7ed The New Yor Con!ention #-jecti!e Pro!isions Foreign Ar-itral Award in

Page No) 2 4 4 8 19 11 13 16

;

/ndian law An o!er!iew of ,ro!ision in

16

19

Ar-itration and Conciliation Act Conclusion

3

/NT.#& Law

Pr#or to >a"uar% &((!* the law of e"forceme"t of arb#trat#o" awar1s #" I"1#a was s0rea1 betwee" three e"actme"ts. E"forceme"t of 1omest#c awar1s was 1ealt w#th u"1er a &(?< Act. E"forceme"t of fore#+" awar1s was 1#$#1e1 betwee" two statutes  @ a &( Act to +#$e effect to the 5e"e$a -o"$e"t#o" awar1s a"1 a &(!& Act to +#$e effect to the 4ew York -o"$e"t#o" awar1s.

The 'ene!a Con!ention

O" the #"ter"at#o"al le$el* there are "umerous b#lateral treat#es #"clu1#"+ 0ro$#s#o"s for the e"forceme"t of arb#tral awar1s. As to mult#lateral treat#es* the most s#+"#f#ca"t 1e$elo0me"ts s#"ce the 3#rst )orl1 )ar ha$e bee" the 5e"e$a Protocol o" Arb#trat#o" -lauses of &('* the 5e"e$a -o"$e"t#o" o" the E7ecut#o" of 3ore#+" Arb#tral Awar1s of &('* a"1 the U"#te1 4at#o"s -o"$e"t#o" o" the Ceco+"#t#o" a"1 E"forceme"t of 3ore#+" Arb#tral Awar1s of &(=.

The a00l#cat#o" of both treat#es #s l#m#te1 to 0erso"s who are sub2ect to the  2ur#s1#ct#o" of 1#ffere"t co"tract#"+ states. U"1er the Protocol* a" arb#trat#o" a+reeme"t relat#"+ to e7#st#"+ or future 1#ffere"ces #s reco+"#9e1 as $al#1* that #s* #rre$ocable. The a+reeme"t ma% relate to a"% matter ca0able of settleme"t b% arb#trat#o"* but the co"tract#"+ states ma% l#m#t the#r obl#+at#o"s to commerc#al co"tracts. If a su#t #s brou+ht 1es0#te the arb#trat#o" a+reeme"t* courts are re8u#re1 to refer the 0art#es to the arb#trators* e7ce0t where the a+reeme"t or the arb#trat#o" ca""ot 0rocee1 or has become #"o0erat#$e. The -o"$e"t#o" #s su00leme"tar% to the Protocol #" that #t a00l#es to awar1s ma1e 0ursua"t to arb#trat#o" a+reeme"ts co$ere1  b% the Protocol. O"l% states 0art#es to the Protocol ma% become 0art#es to the -o"$e"t#o". Each co"tract#"+ state #s re8u#re1 to reco+"#9e as b#"1#"+ a"1 to e"force* #" accor1a"ce w#th the 0roce1ure of the forum* awar1s re"1ere1 #" the terr#tor% of

a"other co"tract#"+ state* o" the follow#"+ co"1#t#o"s:

 the awar1 was re"1ere1 0ursua"t to arb#trat#o" a+reeme"t $al#1 u"1er the law a00l#cable to the a+reeme"tF

 The ob2ect of the awar1 #s ca0able of settleme"t b% arb#trat#o" u"1er the law of the cou"tr% of the forumF

 The awar1 was re"1ere1 b% the arb#tral tr#bu"al 0ro$#1e1 #" the arb#trat#o" a+reeme"t or co"st#tute1 as a+ree1 b% the 0art#es a"1 #" co"form#t% w#th the law +o$er"#"+ the arb#trat#o" 0roce1ureF

 The awar1 has become f#"al a"1 "o 0rocee1#"+s are 0e"1#"+ for the 0ur0ose of co"test#"+ the $al#1#t% of the awar1. A" awar1 st#ll sub2ect to o00os#t#o" or a00eal or the e8u#$ale"t #s "ot re+ar1e1 as f#"alF

 The reco+"#t#o" or e"forceme"t of the awar1 woul1 "ot be co"trar% to 0ubl#c 0ol#c% or the G0r#"c#0le of the lawG of the forum.

E$e" where these co"1#t#o"s ha$e bee" met* reco+"#t#o" a"1 e"forceme"t of the awar1 must st#ll be refuse1* #f the court f#"1s that

a; The awar1 has bee" a""ulle1 #" the cou"tr% where #t was re"1ere1F or 

b; The 0art% a+a#"st whom the awar1 has bee" #"$oke1 1#1 "ot ha$e suff#c#e"t "ot#ce* or be#"+ u"1er a le+al #"ca0ac#t%* was "ot 0ro0erl% re0rese"te1F or 

c; The awar1 1eals w#th a 1#s0ute "ot #"clu1e1 u"1er the terms of the a+reeme"t* or

the awar1 +oes be%o"1 the sco0e of the a+reeme"t. 3urthermore* a court ma% refuse e"forceme"t or +#$e the los#"+ 0art% reaso"able t#me to seek a""ulme"t #f that 0art%  0ro$es that u"1er the law of the cou"tr% where the arb#trat#o" took 0lace* there #s a +rou"1 other tha" those s0ec#f#e1 #" the -o"$e"t#o"; to co"test the $al#1#t% of the awar1 #" a court of law.

The Geneva treaties have been criticized for legal and practical reasons:

a; There #s some amb#+u#t% #" the e70ress#o" ,sub2ect to the 2ur#s1#ct#o" of 1#ffere"t -o"tract#"+ States*/ wh#ch 1ef#"es the sco0e of a00l#cat#o" of the treat#es. It #s "ot clear whether #t mea"s sub2ect to the so$ere#+"t% of a state #" the se"se of "at#o"al#t%* or sub2ect to the 2ur#s1#ct#o" of the courts of a state b% reaso" of res#1e"ce* 1om#c#le* or other cr#ter#a.

 b; It has also bee" obser$e1 that a 0la#"t#ff seek#"+ e"forceme"t #" o"e cou"tr% woul1 f#"1 #t 0art#cularl% 1#ff#cult to 0ro$e that the arb#tral tr#bu"al was co"st#tute1 #" co"form#t% w#th the law of a"other cou"tr% a"1 that the awar1 has become f#"al #" that cou"tr%.

c; 3#"all%* the 0oss#b#l#t% of co"test#"+ the $al#1#t% of a" awar1 o" +rou"1s other tha" those l#ste1 #" the -o"$e"t#o" has bee" re+ar1e1 as mak#"+ #t too eas% for a recalc#tra"t 1efe"1a"t to a$o#1 the e"forceme"t of a" awar1 b% resort#"+ to obstruct#o"#st tact#cs.

Later &e!elo,*ents

Th#s state of affa#rs 0rom0te1 the I"ter"at#o"al -hamber of -ommerce* wh#ch ha1 or#+#"all% take" the #"#t#at#$e lea1#"+ to the 5e"e$a -o"$e"t#o"* to subm#t to the

U"#te1 4at#o"s Eco"om#c a"1 Soc#al -ou"c#l a 0ro0osal for a "ew co"$e"t#o" o" the e"forceme"t of #"ter"at#o"al arb#tral awar1s. I" the o0#"#o" of the I-- the ma#" 1efect of the 5e"e$a -o"$e"t#o" was the co"1#t#o" that* to be e"force1* a" arb#tral awar1 must be ,str#ctl% #" accor1a"ce w#th the rules of 0roce1ure la#1 1ow" #" the law of the cou"tr% where arb#trat#o" took 0lace./ I" or1er to meet the re8u#reme"ts of  #"ter"at#o"al tra1e* the I-- a1$ocate1 the #1ea of a" H#"ter"at#o"al awar1* #.e.* a" awar1 com0letel% #"1e0e"1e"t of "at#o"al laws* a"1 su++este1 that arb#tral awar1s  base1 o" the w#ll of the 0art#es shoul1 be automat#call% e"forceable. The I-- 1raft sou+ht to atta#" th#s 0ur0ose ma#"l% b% w#1e"#"+ the sco0e of a00l#cat#o" a"1  0ro$#1#"+ that* as a co"1#t#o" for e"forceme"t* the com0os#t#o" of the arb#tral author#t% a"1 the arb#tral 0roce1ure must be #" accor1a"ce w#th the a+reeme"t of the  0art#es. O"l% #" the abse"ce of such a+reeme"t* must the% co"form to the law of the cou"tr% where arb#trat#o" took 0lace. The other co"1#t#o"s for e"forceme"t #" the I-- 1raft 1#1 "ot 1#ffer +reatl% from those of the 5e"e$a -o"$e"t#o"* e7ce0t for the om#ss#o" of the re8u#reme"t of f#"al#t% of awar1s* re+ar1e1 b% the I-- as e"coura+#"+ 1#lator% measures.

T?% N%$ Y#." C#N@%NT/#N

The U"#te1 4at#o"s -o"$e"t#o" o" the Ceco+"#t#o" a"1 E"forceme"t of 3ore#+" Arb#tral Awar1s

?istor

The -o"$e"t#o" o" the Ceco+"#t#o" a"1 E"forceme"t of 3ore#+" Arb#tral Awar1s a#ms to fac#l#tate the reco+"#t#o" a"1 e"forceme"t of arb#tral awar1s +e"erall%  betwee" 0r#$ate 0art#es. It succee1s the &(' 5e"e$a -o"$e"t#o" o" the E7ecut#o" of  3ore#+" Arb#tral Awar1s a"1 the &(' 5e"e$a Protocol o" Arb#trat#o" -lauses wh#ch also 0ro$#1e1 for rec#0rocal reco+"#t#o" a"1 e"forceme"t abroa1 of certa#" arb#trat#o" a+reeme"ts a"1 awar1s* but ha1 ser#ous shortcom#"+s;.

It #s 1escr#be1 as the most successful treat% #" 0r#$ate #"ter"at#o"al law a"1 #s a1here1 to b% more tha" &?< "at#o"s. The -o"$e"t#o" was establ#she1 as a result of 1#ssat#sfact#o" w#th the 5e"e$a Protocol o" Arb#trat#o" -lauses of &(' a"1 the 5e"e$a -o"$e"t#o" o" the E7ecut#o" of 3ore#+" Arb#tral Awar1s of &('. These co"$e"t#o"s suffere1 from certa#" shortcom#"+s. 3or e7am0le* the% e7clu1e1 from the#r a00l#cat#o" awar1s re"1ere1 #" a state "ot a 0art% to the 5e"e$a -o"$e"t#o"* a"1 re8u#re1 or1ers e"forc#"+ the awar1 #" the cou"tr% where the awar1 was re"1ere1 as well as the e"forc#"+ cou"tr%. The% also 0lace1 the bur1e" of 0roof o" the 0art% seek#"+ to e"force the awar1* wh#le at the same t#me mak#"+ #t all too eas% for a recalc#tra"t 1efe"1a"t to a$o#1 e"forceme"t b% resort#"+ to 1ela%#"+ tact#cs. The 4ew York -o"$e"t#o" sou+ht to reme1% these 0roblems.

The #"#t#at#$e to re0lace the 5e"e$a treat#es came from the I"ter"at#o"al -hamber of -ommerce I--;* wh#ch #ssue1 a 0rel#m#"ar% 1raft co"$e"t#o" #" &(. The I--6s #"#t#at#$e was take" o$er b% the U"#te1 4at#o"s Eco"om#c a"1 Soc#al -ou"c#l* wh#ch  0ro1uce1 a" ame"1e1 1raft co"$e"t#o" #" &(. That 1raft was 1#scusse1 1ur#"+ a co"fere"ce at the U"#te1 4at#o"s ea18uarters #" Ma%>u"e &(=* wh#ch le1 to the establ#shme"t of the 4ew York -o"$e"t#o".

#-jecti!es

The following briefly describes the two basic actions contemplated by the New York onvention! a; The reco+"#t#o" a"1 e"forceme"t of fore#+" arb#tral awar1s* #.e.* arb#tral awar1s ma1e #" the terr#tor% of a"other State: Th#s f#el1 of a00l#cat#o" #s 1ef#"e1 #" art#cle I. The +e"eral obl#+at#o" for the -o"tract#"+ States to reco+"#9e such awar1s as b#"1#"+ a"1 to e"force them #" accor1a"ce w#th the#r rules of 0roce1ure #s la#1 1ow" #" art#cle III. A 0art% seek#"+ e"forceme"t of a fore#+" awar1 "ee1s to su00l% to the court: a; the arb#tral awar1F a"1 b; the arb#trat#o" a+reeme"t art#cle I;. The 0art% a+a#"st whom e"forceme"t #s sou+ht ca" ob2ect to the e"forceme"t b% subm#tt#"+ 0roof of o"e of the +rou"1s for refusal of e"forceme"t wh#ch are #m#tat#$el% l#ste1 #" art#cle *  0ara+ra0h &. The court ma% o" #ts ow" mot#o" refuse e"forceme"t for reaso"s of  0ubl#c 0ol#c% as 0ro$#1e1 #" art#cle * 0ara+ra0h '. If the awar1 #s sub2ect to a" act#o" for sett#"+ as#1e #" the cou"tr% #" wh#ch* or u"1er the law of wh#ch* #t #s ma1e ,the cou"tr% of or#+#"/;* the fore#+" court before wh#ch e"forceme"t of the awar1 #s sou+ht ma% a12our" #ts 1ec#s#o" o" e"forceme"t art#cle I;. 3#"all%* #f a 0art% seek#"+ e"forceme"t 0refers to base #ts re8uest for e"forceme"t o" the court6s 1omest#c law o" e"forceme"t of fore#+" awar1s or b#lateral or other mult#lateral treat#es #" force #" the cou"tr% where #t seeks e"forceme"t* #t #s allowe1 to 1o so b% $#rtue of the so calle1 morefa$orabler#+ht0ro$#s#o" of art#cle II* 0ara+ra0h &.

 b; The referral b% a court to arb#trat#o": Art#cle II* 0ara+ra0h * 0ro$#1es that a court of a -o"tract#"+ State* whe" se#9e1 of a matter #" res0ect of wh#ch the 0art#es ha$e ma1e a" arb#trat#o" a+reeme"t* must* at the re8uest of o"e of the 0art#es* refer them to arb#trat#o".

The #"flue"ce of the 4ew York -o"$e"t#o" o" the 1e$elo0me"t of #"ter"at#o"al commerc#al arb#trat#o" has bee" 0he"ome"al. The 4ew York -o"$e"t#o" sol#1#f#e1 two esse"t#al 0#llars of the le+al framework b% 0ro$#1#"+ for the obl#+ator% referral

 b% a "at#o"al court to arb#trat#o" #" the e$e"t of a $al#1 arb#trat#o" a+reeme"t a"1 for the e"forceme"t of the arb#tral awar1. The 4ew York -o"$e"t#o" #s 0robabl% the ma#" reaso" wh% arb#trat#o" #s the 0referre1 metho1 for the resolut#o" of #"ter"at#o"al  bus#"ess 1#s0utes.

Pro!isions

The 4ew York -o"$e"t#o" a00l#es to all arb#tral awar1s re"1ere1 0ursua"t to a wr#tte" arb#trat#o" a+reeme"t #" a cou"tr% other tha" the state of e"forceme"t. The  4ew York -o"$e"t#o" also a00l#es to arb#tral awar1s "ot co"s#1ere1 as 1omest#c awar1s b% the e"forc#"+ state. The term Harb#tral awar16 #s "ot 1ef#"e1* but #"clu1es awar1s ma1e b% a1 hoc tr#bu"als as well as 0erma"e"t arb#tral tr#bu"als. The "at#o"al#t% of the 0art#es #s #rrele$a"t for 0ur0oses of the co"$e"t#o". U"1er Art#cle I ;* co"tract#"+ states ca" choose to l#m#t the a00l#cat#o" of the co"$e"t#o" to arb#tral awar1s re"1ere1 #" a"other co"tract#"+ state or to awar1s relat#"+ to commerc#al 1#s0utes.

I" or1er to obta#" reco+"#t#o" a"1 e"forceme"t of a" arb#tral awar1 u"1er the 4ew York -o"$e"t#o"* a 0art% has o"l% to su00l% the e"forc#"+ court w#th a cert#f#e1 co0% of the arb#tral awar1 a"1 the arb#trat#o" a+reeme"t. If a" arb#tral awar1 #s e"com0asse1 b% the 4ew York -o"$e"t#o"* co"tract#"+ states must reco+"#9e the awar1 as b#"1#"+ a"1 e"force #t #" accor1a"ce w#th local rules of 0roce1ure. The% ma% "ot #m0ose more o"erous co"1#t#o"s* h#+her fees* or char+es o" the reco+"#t#o" or e"forceme"t of the awar1 tha" 0re$a#l w#th res0ect to 1omest#c arb#tral awar1s.

 "f a party objects to enforcement, it has the burden of proving that the award should not be enforced. The objecting party must argue from #rticle $ %&' which provides a list of grounds for refusing enforcement! a; I"$al#1#t% of the arb#trat#o" a+reeme"tF

 b; #olat#o" of 1ue 0rocessF c; E7cess b% arb#trator of h#s author#t%F 1; Irre+ular#t% #" the com0os#t#o" of the arb#tral tr#bu"al or #" the arb#tral 0roce1ureF a"1 e; Awar1 "ot b#"1#"+* sus0e"1e1 or set as#1e #" the cou"tr% of or#+#".

A11#t#o"all%* the court ca" refuse to e"force the awar1 u"1er Art#cle  '; #f #ts sub2ect matter #s #"ca0able of settleme"t b% arb#trat#o" u"1er the e"forc#"+ cou"tr%Js laws or #f reco+"#t#o" or e"forceme"t of the awar1 woul1 $#olate the e"forc#"+ cou"tr%Js 0ubl#c 0ol#c%.

As the 5e"e$a -o"$e"t#o" became $#rtuall% ot#ose b% reaso" of Art II of the 4ew York -o"$e"t#o";* e"forceme"t of fore#+" awar1s* for all 0ract#cal 0ur0oses* came u"1er the &(!& Act a"1 1omest#c awar1s came u"1er the &(?< Act. The e"forceme"t re+#me betwee" these two statutes was* howe$er* 8u#te 1#st#"ct. The &(!& Act co"f#"e1 challe"+e to a" arb#tral awar1 o"l% o" the l#m#te1 +rou"1s 0erm#tte1 u"1er the 4ew York -o"$e"t#o".

-. TE 4E) CE5IME I" >a"uar% &((!* I"1#a e"acte1 a "ew Arb#trat#o" Act. Th#s Act re0eale1 all the three  0re$#ous statutes the &( Act* the &(!& Act a"1 the &(?< Act;.The "ew Act has two s#+"#f#ca"t 0arts. Part I 0ro$#1es for a"% arb#trat#o" co"1ucte1 #" I"1#a a"1 e"forceme"t of awar1s there u"1er. Part II 0ro$#1es for e"forceme"t of fore#+" awar1s. A"% arb#trat#o" co"1ucte1 #" I"1#a or e"forceme"t of awar1 there u"1er whether 1omest#c or #"ter"at#o"al; #s +o$er"e1 b% Part I* wh#le e"forceme"t of a"% fore#+" awar1 to wh#ch the 4ew York -o"$e"t#o" or the 5e"e$a -o"$e"t#o" a00l#es* #s +o$er"e1 b% Part II of the Act.

F#.%/'N A.0/T.AL A$A.&S /N /N&/AN LA$:

 An Overview of the Provisions in the Arbitration and Conciliation Act 

Th#s #s co$ere1 b% Part II of the &((! Act* thou+h 1ue to a rece"t Su0reme -ourt 1ec#s#o"* the 1#st#"ct#o" betwee" the +rou"1s a"1 0roce1ures #" Part I a"1 Part II has +ot blurre1. The 0ro$#s#o"s of Part II of the Act +#$e effect to the 4ew York -o"$e"t#o" a"1 the 5e"e$a -o"$e"t#o".

1) Foreign Award &efined

I" or1er to be co"s#1ere1 as a fore#+" awar1 for the 0ur0oses of the Act;* the same must fulf#ll two re8u#reme"ts. 3#rst #t must 1eal w#th 1#ffere"ces ar#s#"+ out of a le+al relat#o"sh#0 whether co"tractual or "ot; co"s#1ere1 as commerc#al u"1er the laws #" force #" I"1#a. The e70ress#o" Hcommerc#al relat#o"sh#06 has bee" $er% w#1el% #"ter0rete1 b% I"1#a" courts. The Su0reme -ourt #" the case of CM I"$estme"ts Tra1#"+ -o P$t. Lt1 $ Boe#"+ -o K A"or* wh#le co"stru#"+ the e70ress#o" Hcommerc#al relat#o"sh#06* hel1:

,The term Hcommerc#al6 shoul1 be +#$e" a w#1e #"ter0retat#o" so as to co$er matters ar#s#"+ from all relat#o"sh#0s of a commerc#al "ature* whether co"tractual or "ot. The seco"1 re8u#reme"t #s more s#+"#f#ca"t a"1 that #s that the cou"tr% where the awar1 has bee" #ssue1 must be a cou"tr% "ot#f#e1 b% the I"1#a" +o$er"me"t to be a cou"tr% to wh#ch the 4ew York -o"$e"t#o" a00l#es./

The seco"1 re8u#reme"t #s more s#+"#f#ca"t a"1 that #s that the cou"tr% where the awar1 has bee" #ssue1 must be a cou"tr% "ot#f#e1 b% the I"1#a" +o$er"me"t to be a cou"tr% to wh#ch the 4ew York -o"$e"t#o" a00l#es. O"l% a few cou"tr#es ha$e bee"

"ot#f#e1 so far a"1 o"l% awar1s re"1ere1 there#" are reco+"#9e1 as fore#+" awar1s a"1 e"forceable as such #" I"1#a.

A" #"terest#"+ #ssue came u0 before the Su0reme -ourt as to what woul1 ha00e" #" a case where a cou"tr% has bee" "ot#f#e1 but subse8ue"tl% #t 1#$#1es or 1#s#"te+rates #"to se0arate 0ol#t#cal e"t#t#es. Th#s came u0 for co"s#1erat#o" #" the case of Tra"socea" Sh#00#"+ A+e"c% P$t. Lt1 $ Black Sea Sh#00#"+ K Ors. ere the $e"ue of arb#trat#o" was Ukra#"e wh#ch was the" a 0art of the USSC @ a cou"tr% reco+"#9e1 a"1 "ot#f#e1 b% the 5o$er"me"t of I"1#a as o"e to wh#ch the 4ew York -o"$e"t#o" woul1 a00l%. owe$er* b% the t#me 1#s0utes arose betwee" the 0art#es the USSC ha1 1#s#"te+rate1 a"1 the 1#s0ute came to be arb#trate1 #" Ukra#"e wh#ch was "ot "ot#f#e1;. The 8uest#o" arose whether a" awar1 re"1ere1 #" Ukra#"e woul1 be e"forceable #" I"1#a "otw#thsta"1#"+ the fact that #t was "ot a "ot#f#e1 cou"tr%.

Both the #+h -ourt of Bomba% where the matter came u0 #"#t#all%; a"1 the Su0reme -ourt of I"1#a #" a00eal* hel1 that the creat#o" of a "ew 0ol#t#cal e"t#t% woul1 "ot make a"% 1#ffere"ce to the e"forceab#l#t% of the awar1 re"1ere1 #" a terr#tor% wh#ch was #"#t#all% a 0art of a "ot#f#e1 terr#tor%. O" th#s bas#s the court reco+"#9e1 a"1 u0hel1 the awar1. Th#s 1ec#s#o" #s of co"s#1erable s#+"#f#ca"ce as #t e70a"1s the l#sts of cou"tr#es "ot#f#e1 b% the +o$er"me"t b% br#"+#"+ #" a host of "ew  0ol#t#cal e"t#t#es a"1 +#$#"+ them reco+"#t#o" #" the#r "ew a$atar also. At a"other le$el the 2u1+me"t 1emo"strates the w#ll#"+"ess of I"1#a" courts to o$ercome tech"#cal#t#es a"1 lea" #" fa$or of e"forceme"t.

3) Co*,arison with &o*estic %nforce*ent .egi*e

There are two fu"1ame"tal 1#ffere"ces betwee" e"forceme"t of a fore#+" awar1 a"1 a 1omest#c awar1. A 1omest#c awar1 1oes "ot re8u#re a"% a00l#cat#o" for e"forceme"t. O"ce ob2ect#o"s #f a"%; are re2ecte1* the awar1 #s b% #tself ca0able of e7ecut#o" as a

1ecree. A fore#+" awar1* howe$er* #s re8u#re1 to +o throu+h a" e"forceme"t  0roce1ure. The 0art% seek#"+ e"forceme"t has to make a" a00l#cat#o" for the sa#1  0ur0ose. O"ce the court #s sat#sf#e1 that the fore#+" awar1 #s e"forceable* the awar1  becomes a 1ecree of the court a"1 e7ecutable as such. The other 1#ffere"ce betwee" the 1omest#c a"1 fore#+" re+#me #s that u"l#ke for 1omest#c awar1s; there #s "o  0ro$#s#o" to set as#1e a fore#+" awar1. I" relat#o" to a fore#+" awar1* the I"1#a" courts ma% o"l% e"force #t or refuse to e"force #t @ the% ca""ot set #t as#1e. Th#s Hlacu"a6 was sou+ht to be 0lu++e1 b% the Su0reme -ourt #" the rece"t 1ec#s#o" of e"ture 5lobal where the -ourt hel1 that #t #s 0erm#ss#ble to set as#1e a fore#+" awar1 #" I"1#a a00l%#"+ the 0ro$#s#o"s of s ? of Part I of the Act.

5) Conditions for %nforce*ent

The co"1#t#o"s for e"forceme"t of a fore#+" awar1 are as 0er the 4ew York -o"$e"t#o". The o"l% a11#t#o" be#"+ a" HE70la"at#o"6 to the +rou"1 of 0ubl#c 0ol#c% wh#ch states that a" awar1 shall be 1eeme1 to be #" co"fl#ct w#th the 0ubl#c 0ol#c% of I"1#a #f #t was #"1uce1 or affecte1 b% frau1 or corru0t#o".

I"1#a" courts ha$e "arrowl% co"strue1 the +rou"1 of 0ubl#c 0ol#c% #" relat#o" to fore#+" awar1s. I" Ce"u Sa+ar Power -o $ 5e"eral Electr#cal -or0 * the Su0reme -ourt co"strue1 the e70ress#o" H0ubl#c 0ol#c%6 #" relat#o" to fore#+" awar1s as follows:

,Th#s woul1 mea" that H0ubl#c 0ol#c%6 #" s &;b;##; has bee" use1 #" "arrower se"se a"1 #" or1er to attract to bar of 0ubl#c 0ol#c% the e"forceme"t of the awar1 must #"$oke someth#"+ more tha" the $#olat#o" of the law of I"1#a  A00l%#"+ the sa#1 cr#ter#a #t must be hel1 that the e"forceme"t of a fore#+" awar1 woul1 be refuse1 o" the +rou"1 that #t #s co"trar% to 0ubl#c 0ol#c% #f such e"forceme"t woul1 be co"trar% to #; fu"1ame"tal 0ol#c% of I"1#a" lawF or ##; the #"terests of I"1#aF or ###; 2ust#ce or

moral#t%./

6) Budiciall Created New Procedure and New 'round for Challenge to Foreign Award

As "ot#ce1 abo$e* there #s "o statutor% 0ro$#s#o" to set as#1e a fore#+" awar1 u"1er the &((! Act. 3ore#+" awar1s ma% be set as#1e or sus0e"1e1 #" the cou"tr% #" wh#ch or u"1er the laws of wh#ch the awar1 was ma1e but there #s "o 0ro$#s#o" to set as#1e a fore#+" awar1 #" I"1#a. Th#s fu"1ame"tal 1#st#"ct#o" betwee" a fore#+" a"1 a 1omest#c awar1 has bee" obl#terate1 b% the Su0reme -ourt #" the rece"t case of e"ture 5lobal. ere* the Su0reme -ourt was co"cer"e1 w#th a s#tuat#o" where a fore#+" awar1 re"1ere1 #" Lo"1o" u"1er the Cules of the Lo"1o" -ourt of I"ter"at#o"al Arb#trat#o" HL-IA6; was sou+ht to be e"force1 b% the successful 0art% a" I"1#a" com0a"%; #" the D#str#ct -ourt* M#ch#+a"* U"#te1 States of Amer#ca HUSA6;. The 1#s0ute arose out of a 2o#"t $e"ture a+reeme"t betwee" the 0art#es. The res0o"1e"t alle+e1 that the a00ella"t ha1 comm#tte1 a" He$e"t of 1efault6 u"1er the sharehol1ers a+reeme"t a"1 as 0er the sa#1 a+reeme"t #t e7erc#se1 #ts o0t#o" to  0urchase the a00ella"t6s shares #" the 2o#"t $e"ture com0a"% at book $alue. The sole arb#trator a00o#"te1 b% the L-IA allowe1 the cla#m a"1 1#recte1 the a00ella"t to tra"sfer #ts shares to the res0o"1e"t. The res0o"1e"t sou+ht to e"force th#s awar1 #" the USA. The a00ella"t f#le1 a c#$#l su#t #" a" I"1#a" 1#str#ct court seek#"+ to set as#1e the awar1. The 1#str#ct court* followe1 b% the #+h -ourt* o" a 00eal* 1#sm#sse1 the su#t hol1#"+ that there was "o such 0roce1ure e"$#sa+e1 u"1er I"1#a" law. owe$er* the Su0reme -ourt o" a00eal* e7te"1#"+ #ts earl#er 1ec#s#o" #" the case of Bhat#a I"ter"at#o"al $ Bulk Tra1#"+* hel1 that e$e" thou+h there was "o 0ro$#s#o" #" Part II of the &((! Act 0ro$#1#"+ for challe"+e to a fore#+" awar1* a 0et#t#o" to set as#1e the same woul1 l#e u"1er s ? Part I of the &((! Act #.e. #t a00l#e1 the 1omest#c awar1  0ro$#s#o"s to fore#+" awar1s;. The court hel1 that the 0ro0ert% #" 8uest#o" shares #" a" I"1#a" com0a"%; #s s#tuate1 #" I"1#a a"1 "ecessar#l% I"1#a" law woul1 "ee1 to be

followe1 to e7ecute the awar1. I" such a s#tuat#o" the awar1 must be $al#1ate1 o" the touchsto"e of 0ubl#c 0ol#c% of I"1#a a"1 the I"1#a" 0ubl#c 0ol#c% ca""ot be +#$e" a +o  b% throu+h the 1e$#ce of the awar1 be#"+ e"force1 o" fore#+" shores.

The e"ture 5lobal case #s far reach#"+ as #t creates a "ew 0roce1ure a"1 a "ew +rou"1 for challe"+e to a fore#+" awar1 "ot e"$#sa+e1 u"1er the &((! Act;. The "ew  0roce1ure #s that a 0erso" seek#"+ to e"force a fore#+" awar1 has "ot o"l% to f#le a" a00l#cat#o" for e"forceme"t u"1er s ?= of the &((! Act* #t has to meet a" a00l#cat#o" u"1er s ? of the &((! Act seek#"+ to set as#1e the awar1. The "ew +rou"1 #s that "ot o"l% must the awar1 0ass the 4ew York -o"$e"t#o" +rou"1s #"cor0orate1 #" s ?=* #t must 0ass the e70a"1e1 H0ubl#c 0ol#c%6 +rou"1 create1 u"1er s ? of the &((! Act. I"  0ract#ce* the statutor#l% e"acte1 0roce1ure for e"forceme"t of a fore#+" awar1 woul1  be re"1ere1 su0erfluous t#ll the a00l#cat#o" for sett#"+ as#1e the same u"1er s ?; #s 1ec#1e1. The statutor#l% e"$#sa+e1 "arrow; 0ubl#c 0ol#c% +rou"1s for challe"+e to a" awar1 woul1 also be re"1ere1 mea"#"+less as the awar1 woul1 ha$e to meet the e70a"1e1 H0ubl#c 0ol#c%6 test a"1 $#rtuall% ha$e to meet a challe"+e to the awar1 o" mer#ts; before #t ca" be e"force1. The e"ture 5lobal case thus lar+el% re"1ers su0erfluous the statutor#l% e"$#sa+e1 mecha"#sm for e"forceme"t of fore#+" awar1s a"1 re0laces #t w#th 2u1+e ma1e law. Moreo$er* #" so far as the 2u1+me"t 0erm#ts a challe"+e to a fore#+" awar1 o" the e70a"1e1 #"ter0retat#o" of 0ubl#c 0ol#c% #t #s 0er #"cur#am* as a lar+er* three Be"ch 1ec#s#o"* #" the case of Ce"u Sa+ar hol1s to the co"trar%. 3urther Saw P#0eso" wh#ch e"ture 5lobal rel#es for th#s 0ro0os#t#o"; ha1 clearl% co"f#"e1 #ts e70a"1e1 #"ter0retat#o" of 0ubl#c 0ol#c% to 1omest#c awar1s alo"e lest #t fall foul of the Ce"u Sa+ar case wh#ch ha1 #"ter0rete1 the e70ress#o" "arrowl%;. The Su0reme -ourt #" e"ture 5lobal 1#1 "ot "ot#ce th#s selfcreate1 l#m#tat#o" #" Saw P#0es* "or 1#1 #t "ot#ce the "arrow #"ter0retat#o" of 0ubl#c 0ol#c% #" Ce"u Sa+ar.

2) Procedural .euire*ents

The 0roce1ure for e"forceme"t of arb#tral awar1s #s 0rett% much the same #" the "ew Act as u"1er the 3ore#+" Awar1s Ceco+"#t#o" a"1 E"forceme"t; Act* &(!& a"1 the Arb#trat#o" Protocol a"1 -o"$e"t#o";* Act &(. The reaso" that there are "o 8ual#tat#$e 1#ffere"ces #s because the 4ew York -o"$e"t#o" a"1 the 5e"e$a -o"$e"t#o" themsel$es 0ro$#1e for the 0roce1ure for e"forceme"t wh#ch are merel% +#$e" statutor% reco+"#t#o" b% wa% of a" e"abl#"+ le+#slat#o" a"1 the same c o"t#"ues u"1er the "ew Act.

a) %nforcea-le awards

There are several requirements for a foreign arbitral award to be enforceable under the # #ct. #; -ommerc#al tra"sact#o": The awar1 must be +#$e" #" a co"$e"t#o" cou"tr% to resol$e commerc#al 1#s0utes ar#s#"+ out of a le+al relat#o"sh#0. I" the case of CM I"$estme"t K Tra1#"+ $s. Boe#"+* the Su0reme -ourt obser$e1 that the term Gcommerc#alG shoul1 be l#berall% co"strue1 as ha$#"+ re+ar1 to ma"#fol1 act#$#t#es wh#ch are a" #"te+ral 0art of #"ter"at#o"al tra1e.

##; )r#tte" a+reeme"t: The 5e"e$a -o"$e"t#o" a"1 the 4ew York -o"$e"t#o"  0ro$#1e that a fore#+" arb#tral a+reeme"t must be ma1e #" wr#t#"+* althou+h #t "ee1 "ot be wor1e1 formall% or be #" accor1a"ce w#th a 0art#cular format.

###; A+reeme"t must be $al#1: The fore#+" awar1 must be $al#1 a"1 ar#se from a" e"forceable commerc#al a+reeme"t. I" the case of har1ah -om0a"% $s. Ca%mo" K -o I"1#a;* the Su0reme -ourt hel1 that a" arb#trat#o" clause ca""ot be e"forceable whe" the a+reeme"t of wh#ch #t forms a" #"te+ral 0art #s 1eclare1 #lle+al.

#$; Awar1 must be u"amb#+uous: I" the case of och 4a$#+at#o" $s. #"1usta"

Petroleum -or0* the Su0reme -ourt hel1 that courts must +#$e effect to a" awar1 that #s clear* u"amb#+uous a"1 ca0able of resolut#o" u"1er I"1#a" law.

 A person who intends to enforce a foreign arbitral award should apply to the court and produce the following documents:

a; Or#+#"al awar1 or co0% thereof* 1ul% authe"t#cate1 #" the ma""er re8u#re1 b% the law of the cou"tr% #" wh#ch #t was ma1e. b; Or#+#"al a+reeme"t for arb#trat#o" or a 1ul% cert#f#e1 co0% thereof* c; Such e$#1e"ce as ma% be "ecessar% to 0ro$e that the awar1 #s a fore#+" awar1. 1; Tra"slat#o"s* #f "ecessar% shall also be fur"#she1.

-) .ele!ant Court

The I"1#a" Su0reme -ourt has acce0te1 the 0r#"c#0le that e"force me"t 0rocee1#"+s ca" be brou+ht where$er the 0ro0ert% of the los#"+ 0art% ma% be s#tuate1. Th#s was #" the case of Brace Tra"s0ort -or0 of Mo"ro$#a $ Or#e"t M#11le East L#"es Lt1. The court here 8uote1 a 0assa+e from Ce1fer" a"1 u"ter o" Law a"1 Pract#ce of I"ter"at#o"al -ommerc#al Arb#trat#o"* #"ter al#a* as follows:

,A 0art% seek#"+ to e"force a" awar1 #" a" #"ter"at#o"al commerc#al arb#trat#o" ma% ha$e a cho#ce of cou"tr% #" wh#ch to 1o soF as #t #s somet#mes e70resse1* the 0art% ma% be able to +o forum sho00#"+. Th#s 1e0e"1s u0o" the locat#o" of the assets of the los#"+ 0art%. S#"ce the 0ur0ose of e"forceme"t 0rocee1#"+s #s to tr% to e"sure com0l#a"ce w#th a" awar1 b% the le+al attachme"t or se#9ure of the 1efault#"+ 0art%6s assets* le+al 0rocee1#"+s of some k#"1 are "ecessar% to obta#" t#tle to the assets se#9e1 or the#r 0rocee1s of sale. These le+al 0rocee1#"+s must be take" #" the state or states #" wh#ch the 0ro0ert% or other assets of the los#"+ 0art% are locate1./

c) Ti*e Li*it

The &((! Act 1oes "ot 0rescr#be a"% t#me l#m#t w#th#" wh#ch a fore#+" awar1 must be a00l#e1 to be e"force1. owe$er* $ar#ous #+h -ourts ha$e hel1 that the 0er#o1 of l#m#tat#o" woul1 be +o$er"e1 b% the res#1ual 0ro$#s#o" u"1er the L#m#tat#o" Act &(! 4o ! of &(!;* #.e. the 0er#o1 woul1 be three %ears from the 1ate whe" the r#+ht to a00l% for e"forceme"t accrues. The #+h -ourt of Bomba% has hel1 that the r#+ht to a00l% woul1 accrue whe" the awar1 #s rece#$e1 b% the a00l#ca"t.

d) 'rounds for .efusal of %nforce*ent

Sect#o" ?= for 4ew York co"$e"t#o" a"1 Sect#o"  for 5e"e$a co"$e"t#o" of the Act of &((! la%s 1ow" the +rou"1s where the e"forceme"t ma% be refuse1 #t the ob2ector ca" 0ro$e o"e of the follow#"+ +rou"1s:

#; I"ca0ac#t%: that a 0art% to the arb#trat#o" a+reeme"t was* u"1er the law a00l#cable to h#m* u"1er some #"ca0ac#t%*

##; I"$al#1 Arb#trat#o" A+reeme"t: that the Harb#trat#o" a+reeme"t6 was #"$al#1 u"1er the law to wh#ch the 0art#es sub2ecte1 #t* or* fa#l#"+ a"% #"1#cat#o" thereo"* u"1er the law of the cou"tr% where the awar1 was ma1e*

###; Due 0rocess: that a 0art% was "ot +#$e" 0ro0er "ot#ce of the a00o#"tme"t of the arb#trator or of the arb#trat#o" 0rocee1#"+s or was otherw#se u"able to 0rese"t h#s case*

#$; >ur#s1#ct#o"al 1efect: that the awar1 1eals w#th a 1#ffere"ce "ot co"tem0late1 b% the terms of arb#trat#o" a+reeme"t.

$; That the com0os#t#o" of the arb#tral author#t% or the arb#tral 0roce1ure was "ot #" accor1a"ce w#th the a+reeme"t of the 0art#es* or fa#l#"+ such a+reeme"t* w#th the law of the cou"tr% where the arb#trat#o" took 0lace.

$#; That the awar1 has "ot %et becomes b#"1#"+ o" the 0art#es* or has bee" set as#1e or sus0e"1e1 b% a com0ete"t author#t% of the cou"tr%* #" wh#ch* or u"1er the law of wh#ch* #t was ma1e.

e) %D officio Court Burisdiction

The section further lays down the grounds where the court may also refuse to enforce a foreign award if it finds! #; 4o"arb#trab#l#t%  That the awar1 #s #" res0ect of a matter wh#ch #s "ot ca0able of settleme"t b% arb#trat#o" u"1er the laws of I"1#a.

I" the case of 3uerst Da% Lawso" lt1. Ns >#"1al E70ort lt1* Su0reme -ourt hel1 that o"ce the court 1eterm#"es that a fore#+" awar1 #s e"forceable #t ca" stra#+htawa% be e7ecute1 as a 1ecree. I" other wor1s* "o other a00l#cat#o" #s re8u#re1 to co"$ert the  2u1+me"t #"to a 1ecree.

##; -o"trar% to Publ#c Pol#c%  That the e"forceme"t of the fore#+" awar1 woul1 be co"trar% to 0ubl#c 0ol#c% of I"1#a. The $#olat#o" of rules of 0ubl#c 0ol#c% #s a +rou"1 for refusal of e"forceme"t or a +rou"1 for sett#"+ as#1e. I"1#a" law 1oes "ot restr#ct or e7te"1; th#s +rou"1 to $#olat#o" of I"ter"at#o"al Publ#c Pol#c% e$e" where the arb#trat#o" #s a" #"ter"at#o"al commerc#al arb#trat#o". )here e"forceme"t of a fore#+" awar1 #s sou+ht #" a"% -ourt #" I"1#a* the rules of 0ubl#c 0ol#c% a00l#cable w#ll o"l%  be the ,Publ#c Pol#c% of I"1#a/.

I" Ce"u sa+ar6s case* wh#lst co"stru#"+ the 0ro$#s#o"s of Sect. &;b;##; of the

3ore#+" Awar1s Act wh#ch re0ro1uce1 Art.  '; b; of the 4ew York -o"$e"t#o";* the Su0reme -ourt of I"1#a hel1 that #" or1er to attract the bar of 0ubl#c 0ol#c% the e"forceme"t of the awar1 must #"$ol$e someth#"+ more tha" $#olat#o" of I"1#a" lawF the e"forceme"t of a fore#+" awar1 woul1 be refuse1 o" the +rou"1 that #t #s co"trar% to 0ubl#c 0ol#c% #f such e"forceme"t was co"trar% ,to the fu"1ame"tal 0ol#c% of I"1#a" law or 2ust#ce or moral#t%/. It was hel1 that a"% $#olat#o" of the 3ore#+" E7cha"+e Ce+ulat#o" Act* wh#ch was e"acte1 for the "at#o"al eco"om#c #"terest* woul1 be co"trar% to the 0ubl#c 0ol#c% of I"1#a. The e"forceab#l#t% of a fore#+" awar1 coul1 "ot be res#ste1 as $#olat#"+ the 0ubl#c 0ol#c% of I"1#a where a" awar1* howe$er* 1#recte1 0a%me"t of com0ou"1 #"terest* or 1#recte1 0a%me"t of com0e"sator% 1ama+es or where the arb#tral tr#bu"al ha1 awar1e1 a" amou"t h#+her tha" shoul1 ha$e bee" awar1e1 or where costs awar1e1 b% the arb#tral tr#bu"al were e7cess#$e.

I" Su0reme -ourt case of O#l K 4atural 5as -or0orat#o" Lt1. $s. Saw P#0es Lt1.* the 1ef#"#t#o" of ,0ubl#c 0ol#c%/ #" sect#o" ? of the Act was co"tro$ers#all% e70a"1e1 such that a"%th#"+ wh#ch #s a+a#"st a"% I"1#a" law #s 1eeme1 to be o00ose1 to I"1#a"  0ubl#c 0ol#c%. Th#s mea"s that a"% fore#+" awar1s that are sub2ect to the a00l#cat#o" of sect#o" ? ca" be challe"+e1 u"1er w#1er +rou"1s tha" woul1 usuall% be 0erm#tte1 u"1er the 4ew York -o"$e"t#o" alo"e.

f) %nforce*ent of Non Con!ention Awards

I" the case of Ba1at K -o. Bomba% Ns East I"1#a Tra1#"+ -o. the Su0reme -ourt has rule1 that ,such a 4o"co"$e"t#o"al awar1 w#ll be e"forceable #" I"1#a u"1er the commo" law o" +rou"1s of 2ust#ce* e8u#t% a"1 +oo1 co"sc#e"ce./

I" case of Bhat#a I"ter"at#o"al Ns Bulk Tra1#"+ S.A. K A"r.* The Su0reme -ourt hel1 that ,The &((! Act "owhere 0ro$#1es that #ts 0ro$#s#o"s are "ot to a00l% to #"ter"at#o"al commerc#al arb#trat#o"s wh#ch take 0lace #" a "o"co"$e"t#o" cou"tr%./

 ?ow to /*,ro!e*ent

)h#le #t woul1 be u"real#st#c to e70ect the 2u1#c#ar% to e"force a" awar1 w#thout $ett#"+ the arb#tral 0rocess b% wa% of "ua"ces of the "at#o"al le+al s%stem such as 1ue 0rocess a"1 e$#1e"t#ar% sta"1ar1s* #" or1er to fac#l#tate the I"ter"at#o"al Arb#trat#o" 0rocess* #t #s #m0orta"t to e7erc#se 2u1#c#al restra#"t #" scrut#"#9#"+ the I"ter"at#o"al arb#tral awar1s. )here absolute arb#tral f#"al#t% #s #"#m#cal to a rat#o"al s%stem of H0ubl#c 0ol#c%6 as reco+"#9e1 b% the I"1#a" Su0reme -ourt #" se$eral  2u1+me"ts a"1 o" the other ha"1* #t #s "ecessar% for a" effect#$e #"ter"at#o"al arb#tral s%stem. Bala"c#"+ the co"fl#ct#"+ cla#ms of 0ubl#c 0ol#c% a"1 arb#tral f#"al#t% #s 1#ff#cult. A "ew a"1 "arrower 1ef#"#t#o" of the term 0ubl#c 0ol#c% #s re8u#re1 #" the era of +lobal#9at#o" to e"coura+e the fore#+" #"$estors to carr% out health% commerc#al relat#o"sh#0s #" I"1#a. A +loball% com0at#ble 1ef#"#t#o" of H0ubl#c 0ol#c%6 shoul1 be a1o0te1 or the court shoul1 ab1#cate the 0ubl#c 0ol#c% to some e7te"t so as to e"sure the e1#f#ce of I"ter"at#o"al -ommerc#al Arb#trat#o"  a" arb#tral awar1 m#+ht ru" co"trar% to the 0ubl#c 0ol#c% of I"1#a but #t m#+ht "ot be a+a#"st the 0ubl#c  0ol#c% at the I"ter"at#o"al le$el a"1 m#+ht be be"ef#c#al too to that 0art%.

Parties Must S,ecificall %Dclude A,,lication of Part / of the Act

Some authors ha$e o0#"e1 that u"t#l the e"ture 5lobal 1ec#s#o" #s re$erse1 or o$errule1 b% a lar+er be"ch of the Su0reme -ourt* 0art#es 1o#"+ bus#"ess #" I"1#a or elsewhere w#th I"1#a" 0art#es shoul1 #"clu1e #" the#r arb#trat#o" 0ro$#s#o" a clause s0ec#f#call% e7clu1#"+ the a00l#cab#l#t% of Part I of the &((! Act. Th#s shoul1 make Sect#o" ? #"a00l#cable to the awar1. 3urther* #t #s best to make th#s e7clus#o" e70ress a"1 "ot rel% o" the -ourtJs stateme"t that the e7clus#o" ca" be #m0l#e1 because #t #s "ot clear as to what the court woul1 f#"1 to be a" acce0table #m0l#e1 e7clus#o". 3or e7am0le* #" I4DTEL Tech"#cal Ser$#ces P$t. Lt1. $. ).S. Atk#"s PL-* the 0art#es6 memora"1um of u"1ersta"1#"+ #"1#cate1 that the co"struct#o"* $al#1#t% a"1

 0erforma"ce of the a+reeme"t woul1 be +o$er"e1 b% a"1 co"strue1 #" accor1a"ce w#th laws of E"+la"1 a"1 )ales. owe$er* #t was hel1 that I"1#a" courts ha1  2ur#s1#ct#o" to a00o#"t the arb#trator u"1er Sect#o" &&(; because the 0art#es ha1 "ot chose" the seat of arb#trat#o". The -ourt 1#1 "ot co"s#1er the cho#ce of fore#+" law as a" #m0l#e1 e7clus#o" of Part I b% the 0art#es. Th#s results #" u"certa#"t% about the e"forceme"t of fore#+" awar1s. It #s esse"t#al to reme1% th#s s#tuat#o".

The Legislature Must Tae Ste,s to Preser!e the Sanctit of the A&. *o!e*ent

Some other su++est#o"s ha$e calle1 for I"1#aJs Le+#slature ou+ht to take ste0s to curta#l u""ecessar% 2u1#c#al le+#slat#o" a"1 1era#lme"t of arb#trat#o" 0rocee1#"+s #" the +arb of f#ll#"+ lacu"ae #" the &((! Act. The #"ter"at#o"al "etwork of rec#0rocal e"forceme"t treat#es of u"#$ersal 1#s0os#t#o" shoul1 be a1o0te1 b% I"1#a to foster the res0ect for the I"ter"at#o"al Arb#trat#o".

Budiciar Must .es,ect and Su,,ort 'lo-all Acce,ted &is,ute .esolution Mechanis*s

It has bee" sa#1 that I"1#aJs 2u1#c#ar% shoul1 a1o0t a" #"ter"at#o"all% acce0table a00roach to the e"forceme"t of a fore#+" awar1 u"1er the 4ew York -o"$e"t#o" a"1 create a" arb#trat#o" fr#e"1l% e"$#ro"me"t. Its courts shoul1 "ot hes#tate to a00o#"t am#cus cur#ae or e70erts whe"e$er face1 w#th #ssues relat#"+ to #"ter0retat#o" of 4ew York -o"$e"t#o" 0ro$#s#o"s. I" fact* s#"ce most 2u1+es s#tt#"+ o" the lower courts ha$e l#ttle or "o e70er#e"ce 1eal#"+ w#th #ssues ar#s#"+ out of the 4ew York -o"$e"t#o"* the I"1#a" Bar shoul1 hol1 co"fere"ces* sem#"ars a"1 tra#"#"+ 0ro+rams to br#"+ these #ssues to the be"ch a"1 1#scuss #ssues of co"cer".

The I"1#a" courts6 co"t#"ue1 att#tu1e to "ot res#st the tem0tat#o" to #"ter$e"e #"

arb#trat#o"s #s harmful. Pr#mar#l% for a le+al s%stem wh#ch #s 0la+ue1 b% e"1e m#c 1ela%s* a 0roarb#trat#o" sta"ce woul1 re1uce the 0ressure o" courts. Arb#trat#o" #s "ot merel% a" attract#$e a"1 lucrat#$e o0t#o" for resolut#o" of 1#s0utes* #t #s absolutel% esse"t#al to ma#"ta#" the #"te+r#t% of the I"1#a" le+al s%stem so that the trust #" #t #s ma#"ta#"e1 a"1 I"1#a shoul1 work to safe the c#ta1el of I"ter"at#o"al -ommerc#al Arb#trat#o".

E

Conclusion #ewe1 #" #ts total#t% I"1#a 1oes "ot come across as a 2ur#s1#ct#o" wh#ch carr#es a"t# arb#trat#o" b#as. The #mme1#ate 0ur0ose of the "ew Act was to com0rehe"s#$el% co$er #"ter"at#o"al commerc#al arb#trat#o"s a"1 co"c#l#at#o" as well as 1omest#c arb#trat#o" a"1 co"c#l#at#o"F to m#"#m#9e the su0er$#sor% role of courts #" the arb#tral

 0rocess a"1 to 0ro$#1e that e$er% f#"al arb#tral awar1 #s e"force1 #" the same ma""er as #f #t were a 1ecree of the court a"1 th#s seems to ha$e bee" ach#e$e1 b% the e70ress  0ro$#s#o"s of the "ew Act a"1 the #"ter0retat#$e 2ur#s0ru1e"ce +e"erate1 b% the Su0reme -ourt.

.eferences: 0i-ilogra,h:

 Maranda P) C) Law relating to Ar-itration and Conciliation  LeDisNeDis 0utterworths $adhwa Nag,ur (399;+Se!enth %dition

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