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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:

- 2 -

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

- 3 -

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.

- 4 -

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

- 5 -

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

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