Introduction
The recent judgment of the Delhi High Court in the case of Cairn
India Ltd & Ors. v. Government of India (GOI) (decided on
February 2020) is an interesting exposition on the status and
enforceability of a New York Convention award in India.
The question before the Court was whether an action to enforce
an NYC award was barred by limitation. By way of background, under
the Indian Limitation Act, 1963, the time period for enforcement of
a decree is 12 years commencing from the date of the decree. In
other cases, there is a 3-year limitation period commencing from
the date the cause of action ensues.
The award holder contended that the 12-year time period was
attracted as an NYC award was a decree of the court. In contrast,
GOI argued that a foreign award is not a decree until the Court
rules on the Indian equivalent of the Article V defences to
enforcement. GOI submitted that as the court was yet to rule on the
enforceability of the award, the 12-year