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J. R. MIDHA
KLA Const Technologies Pvt. Ltd. – Appellant
Versus
Embassy Of Islamic Republic Of Afghanistan – Respondent
JUDGMENT
J.R. Midha, J. - The petitioners are seeking enforcement of arbitral awards against Foreign States.
2. The petitioner in OMP (ENF) (COMM) 82/2019 is seeking enforcement of an arbitral award dated 26th November, 2018 against the Embassy of Islamic Republic of Afghanistan whereas the petitioner in OMP (EFA) (COMM) 11/2016 is seeking enforcement of an /arbitral award dated 25th October, 2015 against Ministry of Education, Federal Democratic Republic of Ethiopia. The two important questions of law have arisen for consideration before this Court in these petitions:
I. Whether the prior consent of Central Government is necessary under Section 86(3) of the Code of Civil Procedure to enforce an arbitral award against a Foreign State ?
II. Whether a Foreign State can claim Sovereign Immunity against enforcement of arbitral award arising out of a commercial transaction ?
Brief facts of OMP (ENF) (COMM) 82/2019
3. On 11th February, 2008, the respondent awarded a contract to the petitioner for rehabilitation of Afghanistan Embassy at New Delhi for consideration of Rs.3,02,17,066.83.
4. Disputes arose between the parties during the course of execution of work whereupon the petitioner invoked
A Foreign State cannot claim Sovereign Immunity against enforcement of an arbitral award arising out of a commercial transaction.
Enforcement of a foreign arbitral award is granted under Section 48 of the Arbitration Act, emphasizing limited grounds for refusal based on public policy, requiring strong evidence of violation.
Sine qua non for execution of an award is existence of properties against which an order could be passed by Court.
(1) Enforcement of Foreign Arbitral Award – Nothing stands in way of party autonomy in designating a seat of arbitration outside India even when both parties happen to be Indian nationals. (2) Freedo....
The enforcement of foreign arbitral awards may only be refused on specific grounds as outlined in the Arbitration and Conciliation Act; violations of procedural norms do not themselves constitute a b....
Enforcement of foreign arbitration awards is governed by specific provisions under the Arbitration and Conciliation Act, with the resisting party bearing the burden of proof to establish grounds for ....
The court emphasized the 'pro-enforcement bias' in the New York Convention of 1958 and the need to enforce foreign arbitral awards as a rule, denying enforcement only as an exception.
The court emphasized the narrow scope of grounds available under Section 48 of the Arbitration Act for resisting enforcement of a foreign arbitral award and the need for a high threshold to successfu....
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