AP-EFA NO. 1/2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF FEBRUARY, 2022
PRESENT
THE HON’BLE MR. RITU RAJ AWASTHI, CHIEF JUSTICE
AND
THE HON’BLE MR.JUSTICE SURAJ GOVINDARAJ
AP-EFA NO.1 OF 2022
BETWEEN :
CTI FUTURE CORPORATION
HAVING ITS REGISTERED OFFICE AT
710B, CCMM BUILDING
YEOUIGONGWON -RO,
YEONGDEUNGPOGU, SEOUL - 150 968
REPBLIC OF KOREA
REPRESENTED BY ITS AUTHORIZED
SIGNATORY SUDARSHAN GUJAR
…PETITIONER
(BY SRI SHREYAS JAYASIMHA, ADVOCATES & OTHERS)
AND :
DUCGIANG CHEMICAL AND DETERGANT POWDER JOINT STOCK
COMPANY
HAVING ITS REGISTERED OFFICE AT
18/44, DUCGIANG
LONGBIEN HANOI, VIETNAM … RESPONDENT
THIS ARBITRATION PETITION - ENFORCEMENT OF FOREIGN
ARBITRAL AWARD FILED UNDER SECTION 47, 48 AND 49 OF THE
ARBITRATION AND CONCILIATION ACT, 1996, PRAYING TO ENFORCE
THE AWARD DATED 18/08/2021 PASSED BY THE SOLE ARBITRATOR
IN SIAC.ARB.903/2020 AND REGISTERED WITH THE SIAC REGISTRY
OF AWARDS AS AWARD NO. 087/2021 (ANNEXURE-A) AND EXECUTE
THE AWARD IN THE EXECUTION PETITION ANNEXED HEREWITH &
ETC.
THIS ARBITRATION PETITION - ENFORCEMENT OF FOREIGN
ARBITRAL AWARD COMING ON FOR ORDERS THIS DAY, CHIEF
JUSTICE MADE THE FOLLOWING:
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AP-EFA NO. 1/2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
[CTI FUTURE CORPORATION VS. DUCGIANG CHEMICAL AND
DETERGENT POWDER JOINT STOCK COMPANY]
CJ & SGRJ:
18.02.2022
1.
The petitioner is before this Court seeking for the
following reliefs:
“i.
To enforce the Award dated 18 August 2021
passed
by
the
Sole
Arbitrator
in
SIAC.ARB.903/2020 and registered with the
SIAC Registry of Awards as Award No.087/2021
(Annexure-A) and execute the Award in the
Execution Petition annexed herewith.
ii.
Pass such other order as this Hon'ble Court may
deem fit and proper in the interest of justice.”
2.
The
international
commercial
arbitral
award
dated
18.08.2021 has been delivered by the Sole Arbitrator in
international arbitration proceedings held in Singapore,
the final award being registered with the Singapore
International Arbitration Centre (SIAC) Registry of
Awards as Award No.87 of 2021. It is the said award
that is sought to be enforced in these proceedings.
3.
A perusal of the award as also cause title of the present
proceedings indicates that both the petitioner and
respondent are body corporates which are incorporated
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outside India, the petitioner having its registered office at
Korea and the respondent having its registered office at
Vietnam. It is in this background that a question has
arisen as to whether an international commercial arbitral
award rendered outside India between the parties who
have no connection to India can be enforced in India by
filing proceedings under Sections 47, 48 and 49 of the
Arbitration and Conciliation Act, 1996 (for short, “the Act
of 1996”).
4.
Part II of the Act of 1996 deals with New York Convention
Awards, under which Sections 44 to 52 find place.
Section 44 of the Act of 1996 deals with foreign awards
and defines the same as an arbitral award on differences
between persons arising out of legal relationships,
whether contractual or not, considered as commercial
under the law in force in India. Section 44(b)
contemplates a situation of an award being delivered in
one of such territories as the Central Government, being
satisfied that reciprocal provisions have been made may,
by notification declare to be territories to which the
Convention applies.
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5.
Thus, for an award to be recognised as a foreign award, it
has to be as regards a commercial relationship as per the
laws in India and rendered in a territory where the
Convention has been made applicable by a suitable
notification by the Central Government.
6.
Section 46 of the Act of 1996 makes any foreign award
enforceable under the Act within India. Section 47 of the
Act of 1996 requires the original award or a copy thereof,
duly authenticated in the manner required by the law in
the country it is made, the original agreement for
arbitration or a duly certified copy thereof and such
evidence as may be necessary to prove that the award is
a foreign award.
7.
Section 47(2) contemplates that if the award or
agreement to be produced is in foreign language, then
the same shall be translated into English.
8.
The explanation to Section 47 provides for the definition
of ‘Court’ under which means the High Court having
original jurisdiction to decide the questions forming the
subject-matter of the arbitral award if the same had been
the subject-matter of a suit in its ordinary original civil
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jurisdiction and in other cases, in the High Court having
jurisdiction to hear appeals from decrees of courts
subordinate to such High Court.
9.
It is relevant to quote Section 2 (e) (ii) of the Act of 1996
which reads as under:
“2.(e) “Court” means –
(i)
xxx
(ii)
in the case of international commercial
arbitration, the High Court in exercise of its
ordinary
original
civil
jurisdiction,
having
jurisdiction to decide the questions forming the
subject-matter of the arbitration if the same had
been the subject-matter of a suit, and in other
cases, a High Court having jurisdiction to hear
appeals from decrees of courts subordinate to
that High Court.”
10.
Section 2 (f) of the Act of 1996 deals with international
commercial arbitration, which is reproduced hereunder
for reference:
“2.(f)
“international
commercial
a