INDIA Law and Practice Contributed by: Neeraj Tuli, Celia Jenkins and Rajat Taimni, Tuli & Co
the award has stayed the enforcement of the award in question on such terms as reasoned by the court. The usual condition for staying the enforcement of an award involving a money decree is generally the entire deposit of the awarded sums with the court; however, the said condition is subject to judicial discretion. In cases where a court prima facie finds that the award was obtained by fraud or corruption, an unconditional stay of enforcement may be granted. Recently, the Supreme Court in MMTC Limited v Anglo American Metallurgical Coal (P) Ltd (2025 INSC 1279) held that the objections against enforcing an arbitral award are maintainable only in circumstances when a decree is void or passed without jurisdiction. The Court recognised that belated objections raised at the enforcement stage are impermissible and emphasised its duty to prevent unwarranted litigation. Conventions India is a party to the New York Convention and the Geneva Convention dealing with recognition and enforcement of foreign awards. Therefore, if the seat of arbitration is in a country that is a signatory to the New York Convention or the Geneva Convention, Indian courts would be able to enforce convention awards. The party applying for the enforcement of a foreign award is required to produce the following as evi- dence: • the original award or a duly authenticated copy of the award; • the original arbitration agreement or a duly certified copy thereof; and • any other evidence necessary to prove that it is a foreign award. The grounds for refusing to enforce a foreign award in India are the same as those laid down in the New York Convention. These include: • incapacity of parties or invalidity of the arbitration agreement; • violation of principles of natural justice; • the award being beyond the scope of the arbitra- tion agreement;
• the composition of the tribunal not being in accord- ance with the agreement between the parties or with the law of the country in which the arbitration took place; • the award having not yet become binding between the parties or having been set aside or suspended at the seat of the arbitration; • the subject matter of the arbitration not being arbi- trable; and • the award being contrary to public policy. In foreign arbitration, the grounds for challenging an award are narrower than those for a domestic award, as the ground of “patent illegality” is not available. 9.7 Alternative Dispute Resolution Where a court is of the view that there are elements of a settlement that may be acceptable to the parties before it, the court may formulate the possible terms of settlement, hear the views of the parties, and refer the parties to: • arbitration; • conciliation; • judicial settlement, including settlement through Lok Adalat; or • mediation. This power is derived from Section 89 of the CPC. This kind of referral demands the parties’ consent when required by law, such as in arbitration cases. Mediation proceedings and settlement discussions are typically confidential. However, in certain circum- stances, the mediator may be required to file a report before the court if so directed. The Mediation Act 2023 (the “Mediation Act”) was enacted to establish an effi- cacious mediation ecosystem in India, especially for institutional mediation. However, only certain limited provisions relating to the Mediation Council of India and the Mediation Fund, as well as the application of the Mediation Act – together with other miscellaneous provisions (including definitions, the power to make rules and regulations under the Mediation Act, and other transitional provisions) – have been notified to date. The other provisions will only come into force once notified.
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