Khushi Gupta
Published on: April 3, 2022 at I20:12 ST
The Karnataka High Court has presided that a Foreign Arbitral Award can be enforced by a Court in India even though the parties have no connection with India on the mandate that the property against which the Award has to be enforced lies within the ‘Territorial Jurisdiction’ of the Court.
In the Case of CTI Future Corporation Vs. Ducgiang Chemical and Detergent Powder Joint Stock Company.
The Bench consisting of Chief Justice Ritu Raj Awasthi and Justice Suraj Govindaraj, held that India is a Signatory to New York Convention which has given a Special Status to Foreign Arbitral Award.
So, India was required to enable Execution of a Foreign Arbitral Award rendered in a reciprocating Country, if the property against which the Arbitral Award has to be enforced was situated within the Jurisdiction of India, according to Chapter 1 Part II of the New York Convention Act and Article 51 (c) of the Indian Constitution.
The Petitioner, CTI Future Corporation filed a Petition before the Karnataka High Court for the Enforcement of a Foreign Arbitral Award rendered in Singapore. The Arbitration Award was registered with the ‘Singapore International Arbitration Centre’.
The Counsel for the Petitioner submitted before the High Court that the Central Government by its notification dated 06.07.1999 has declared that an Arbitral Award rendered in Singapore is enforceable in India in a Court having Territorial Jurisdiction to pass the Orders for Execution.
Since the property belonging to the Respondent comes within the Territorial Jurisdiction of Bangalore High Court, the Court had Jurisdiction to pass the Orders, he added.
The Court held that under Section 44 of the Arbitration and Conciliation Act, 1996 the Foreign Award must be of Commercial Relationship. The Court observed that it was an International Commercial Arbitration Award in the view of the Central Government notification.
Also, the Court had the Jurisdiction to enforce the Award under Part II of the Arbitration and Conciliation Act and the obligation of India under Article 15 (c) of the Indian Constitution.
The Court thus, accepted the Petition filed by the Petitioner and issued Notice to the Respondent.
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