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ARTICLE · 20 JULY 2021

Newsletter-June, 2021

"Prior consent of central government is not required to enforce an arbitral award against a foreign state."

IndiaLitigation, Mediation & Arbitration

JUDGMENTS

Matrix Global Pvt. Ltd. v. Ministry of Education, Federal Democratic Republic of Ethiopia1

"Prior consent of central government is not required to enforce an arbitral award against a foreign state."

The petitioner filed an application for enforcement of the arbitral award against a foreign state. The court framed two issues: Firstly, whether it is necessary to obtain the permission of central government u/s 86 of the CPC before the enforcement of the arbitral award against a Foreign State? Secondly, whether a foreign state is entitled to claim sovereign immunity against the enforcement of the arbitral award in cases arising out of the commercial transaction?

The court ruled that the Central Government's consent was not required for the enforcement of an arbitral judgment against a foreign state under Section 86(3) of the Code. A Foreign State could not claim Sovereign Immunity against the enforcement of an arbitral judgment arising out of a

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