Arbitration and Conciliation Act Section 46 — When foreign award binding

CHAPTER I — New York Convention Awards

Civil

Summary

Any foreign award that can be enforced under this Chapter is treated as binding for all purposes on the people between whom it was made. This means the award is final and conclusive for those parties in every context.

The award may be relied on by any of those people in any legal proceedings in India, whether as a defence, a set-off, or in any other way. So, a party can use the award to support their position in an Indian court, not just to demand enforcement.

Any reference in this Chapter to enforcing a foreign award is understood to also include relying on the award. This makes clear that using the award as a defence or set-off is treated the same as formally enforcing it.

Official Text

Any foreign award which would be enforceable under this Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award.