Arbitration Act 1940
Section 48
Conditions for Enforcement of Foreign Awards
(1) Enforcement of a foreign award may be
refused, at the request of the party against whom it is invoked, only if that furnishes
to the court proof that -
(a) the parties to the
agreement referred to in section 44 were, under the law applicable to them,
under some incapacity, or the said agreement is not valid under the law to
which the parties have subjected it or, failing any indication thereon, under
the law of the country where the award was made; or
(b) the
party against whom the award is invoked was not given proper notice of the
appointment of the arbitrator or of the arbitral proceedings or was otherwise
unable to present his case; or
(c) the
award deals with a difference not contemplated by or not falling within the
terms of the submission to arbitration, or it contains decisions on matters
beyond the scope of the submission to arbitration:
Provided that, if the decisions on matters submitted to
arbitration can be separated from those not so submitted, that part of the
award which contains decisions on matters submitted to arbitration may be
enforced; or
(d) the composition of
the arbitral authority or the arbitral procedure was not in accordance with the
agreement of the parties, or, failing such agreement, was not in accordance
with the law of the country where the arbitration took place; or
(e) the
award has not yet become binding on the parties, or has been set aside or
suspended by a competent authority of the country in which, or under the law of
which, that award was made.
(2) Enforcement of an arbitral award may also
be refused if the Court finds that -
(a) the
subject-matter of the difference is not capable of settlement by arbitration
under the law of India ; or
(b) the
enforcement of the award would be contrary to the public policy of India .
Explanation:
Without prejudice to
the generality of clause (b), it is hereby declared, for the avoidance of any
doubt, that an award is in conflict with the public policy of India if the
making of the award was induced or affected by fraud or corruption.
(3) If an application for the setting aside or
suspension of the award has been made to a competent authority referred to in
clause (e) of sub-section (1) the Court may, if it considers it proper, adjourn
the decision on the enforcement of the award and may also, on the application
of the party claiming enforcement of the award, order the other party to give
suitable security.