Monday, 9 November 2015

Whether foreign Award of arbitration can be reviewed at enforcement stage?

The grounds of challenge enumerated in the aforesaid section are meant to be construed narrowly and do not permit review of the foreign award on merits. The Courts are not expected in any enforcement proceedings to re-determine questions of fact. In Shri Lal Mahal Ltd. (supra) in paragraph 45 of the report, the Hon'ble Supreme Court has specifically held that Section 48 of the 1996 Act does not give an opportunity to have a "second look" at the foreign award in the award enforcement stage. The scope of inquiry under Section 48 does not permit review of the foreign award on merits. Procedural defects (like taking into consideration inadmissible evidence or ignoring/rejecting the evidence which may be of binding nature) in the course of foreign arbitration do not lead necessarily to excuse an award from enforcement on the ground of public policy.
Calcutta High Court
Cliff Navigation S. A vs Lmj International Limited on 23 July, 2015

Author: Soumen Sen
Read full judgment here; click here
Citation;AIR2015(NOC)1089 Cal
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