Study on Recognition and Enforcement of Foreign Arbitral Award and Its Challenges Under Indian Legal Regime

This study explores the recognition and enforcement of foreign arbitral awards under Indian legal regime, focusing on the challenges faced in light of the Arbitration and Conciliation Act, 1996 and its subsequent amendments. Arbitration has emerged as an efficient alternative dispute resolution mechanism, especially in international commercial transactions where timely and cost-effective dispute resolution is crucial. A foreign arbitral award is the decision rendered in an arbitration proceeding where the seat of arbitration or the jurisdiction lies outside India. The recognition and enforcement of such awards in India are critical to fostering international trade and business relationships. However, despite legislative frameworks like the New York Convention and the UNCITRAL Model Law, the process in India remains fraught with difficulties. This research delves into the intricacies of these challenges, offering a comprehensive analysis of the Indian legal landscape governing foreign arbitral awards.
The arbitration process culminates in an arbitral award, which can be either domestic or foreign. The Arbitration and Conciliation Act, 1996 is the cornerstone legislation in India that governs both types of awards. Part I of the Act addresses domestic arbitral awards, while Part II deals with foreign arbitral awards. India being a signatory to the New York Convention of 1958, is obligated to recognize and enforce foreign arbitral awards in line with international standards. However, the practical enforcement of these awards in India often encounters significant hurdles which this research aims to critically examine.