Supreme Court On Enforcement Of Foreign Arbitral Awards

Introduction

The Supreme Court (“SC”) judgment in Government of India v. Vedanta Limited and Others¹, in this part we discuss the SC's views on enforcement of foreign arbitral awards under the Arbitration and Conciliation Act, 1996 (“Act”) and the New York Convention along with issues relating to public policy in foreign seated arbitrations.

While the arbitral jurisprudence in India is still evolving to keep up with the progressing commercial disputes world and to make India a favourable place for alternate dispute resolution, this judgment is a stepping stone towards progress. The judgment evaluates the scheme contemplated under Chapter I Part II of the Act. While noting that a foreign award does not become a “foreign decree” at any stage of the proceedings, the SC held that enforcement of a foreign award takes place only after the court is satisfied that it is enforceable under Part II of Chapter I of the Act. The foreign award has to pass the muster