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Despite India’s commitment to global arbitration norms, enforcing foreign arbitral awards remains a complex challenge. Legal experts cite procedural delays, expansive public policy interpretations, and judicial intervention as key hurdles, making collection far more difficult than winning the award itself.
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Main Story:
India’s arbitration landscape is evolving, but enforcing foreign arbitral awards continues to test patience and legal strategy. While the Arbitration and Conciliation Act, 1996 aligns with the New York Convention, practical enforcement is often obstructed by procedural bottlenecks and broad judicial discretion. Recent case law and legal commentary highlight the gap between legislative intent and courtroom reality.
Major Takeaways:
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Awards from reciprocating territories are treated as decrees under Indian law, yet enforcement can be refused under Section 48 on grounds like public policy or improper notice.
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Courts have occasionally interpreted “public policy” expansively, allowing challenges that delay or derail enforcement.
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Interim relief under Section 9 and jurisdictional ambiguities further complicate the process, especially when assets are spread across states.
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Legal scholars and practitioners call for streamlined procedures and reduced judicial interference to uphold India’s image as an arbitration-friendly jurisdiction.
Sources:
ATB Legal, ILE Multidisciplinary Journal, CMR University Journal for Dispute Settlement and Arbitration.
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