Q: What is the applicability of foreign award on the basis of new york Convention ?

Ans:  There are two acts i.e., Arbitration Act, 1937 that finds its genesis from the Geneva Protocol, 1923 as well as Geneva Convention, 1927 and similarly, the foreign awards (Recognition and Enforcement) Act, 1961 finds its root in New York Convention, 1958.

In accordance with Section 44 of the Arbitration and Conciliation Act, 1996, a foreign award is defined as, “an arbitral award on differences that are related to the matters which are deemed commercial under the Indian law”. The two requirements for an award to be a foreign award are, firstly, it should resolve the discrepancies which result from a commercial legal relationship or a relationship that is considered commercial under the Indian law. Secondly, the country that is issuing the award must be a country that has been designated by the Indian Government as a country in which the New York Convention is made applicable. Hence only such arbitral awards are considered and implemented as foreign arbitral awards.

If foreign award violates the domestic law of country, the foreign award will not be applicable and if the arbitration award is beyond the scope of arbitration, that portion will be removed which is beyond the arbitration and the rest portion will be applicable.

The Appeal of domestic award is mentioned under section 37 of arbitration and conciliation act whereas an appeal of foreign award is mentioned under section 59 of Arbitration and Conciliation Act,  1996 for geneva convention and section 50 for new york Convention. 

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