Part I & IINY ConventionSection 48Seat vs VenueEnforcement
AMLEGALS / Dispute Resolution / International Arbitration
Part II Arbitration Act 1996

India is a party to the New York Convention and a growing destination for international commercial arbitration — the enforcement framework is the critical battleground

International commercial arbitration involving Indian parties is governed by the Arbitration and Conciliation Act 1996. Part I applies to arbitrations seated in India (including international commercial arbitrations seated in India), while Part II governs the enforcement of foreign arbitral awards under the New York Convention 1958 and the Geneva Convention 1927.

Strategic context

The Indian framework for international arbitration

India ratified the New York Convention in 1960, and foreign arbitral awards from convention countries are enforceable in India under Part II of the Arbitration Act. Enforcement can be resisted on the limited grounds in Section 48 (corresponding to Article V of the Convention): incapacity of a party, invalidity of the agreement, lack of proper notice, excess of jurisdiction, improper tribunal composition or procedure, award not yet binding or set aside, subject matter not arbitrable, or enforcement contrary to the public policy of India. The Supreme Court in Renusagar Power v General Electric (1994) and ONGC v Western Company (2014) have progressively narrowed the public-policy ground.

AMLEGALS advises on the conduct of international commercial arbitration seated in India and abroad, enforcement and challenge of foreign awards in India, and the strategic implications of seat selection, governing law and institutional rules. The practice covers ICC, SIAC, LCIA, HKIAC and ad hoc arbitration under UNCITRAL Rules.

Workstreams

Advisory workstreams

01

Arbitration clause drafting

Drafting international arbitration clauses specifying seat, governing law, institutional rules and language.

02

Conduct of proceedings

Representing parties in international arbitration proceedings from pleadings through hearing and award.

03

Foreign award enforcement

Enforcing foreign arbitral awards in India under Part II / Section 48 of the Arbitration Act.

04

Challenge to foreign awards

Resisting enforcement of foreign awards on Section 48 grounds, including the public-policy exception.

05

Seat and jurisdiction disputes

Advising on challenges to the seat, jurisdiction and applicable law of the arbitration.

06

Interim relief in aid of foreign arbitration

Obtaining interim relief from Indian courts under Section 9 in aid of arbitrations seated outside India (post-2015 amendment).

Answers

Frequently asked questions

01What is international commercial arbitration under Indian law?

Section 2(1)(f) of the Arbitration Act defines international commercial arbitration as arbitration relating to disputes arising out of legal relationships (contractual or otherwise) considered as commercial under Indian law, where at least one party is a national or habitual resident of a foreign country, or a body corporate incorporated outside India, or a foreign government, or whose management and control is exercised from outside India.

02How are foreign arbitral awards enforced in India?

A party seeking enforcement files an application before the High Court having jurisdiction under Part II of the Arbitration Act, along with the authenticated original or certified copy of the award and the arbitration agreement. The court enforces the award unless one of the grounds under Section 48 (corresponding to Article V of the New York Convention) is established by the resisting party.

03What is the public policy ground for refusing enforcement?

Section 48(2)(b) allows refusal of enforcement if it would be contrary to the public policy of India. The Supreme Court in Renusagar Power v General Electric (1994) held that this covers three categories: the fundamental policy of Indian law, the interests of India, and justice or morality. The 2015 amendment added the explanation that a contravention of the fundamental policy of Indian law does not include a review on the merits.

04Can Indian courts grant interim relief for arbitrations seated abroad?

Yes. Following the 2015 amendment, Section 9 applies to international commercial arbitrations even if the seat is outside India, unless the parties agree to exclude it. Indian courts can grant interim measures such as preservation of property, injunctions and security for amounts in dispute in aid of foreign-seated arbitrations.

05What is the distinction between seat and venue?

The seat of arbitration determines the juridical home of the arbitration — the courts that have supervisory jurisdiction and the law governing the arbitration proceedings. The venue is the physical place where hearings are held. The Supreme Court in BALCO v Kaiser Aluminium (2012) and BGS Soma JV v NHPC (2019) clarified the distinction and its implications for the applicability of Part I or Part II of the Act.

06Does an initial discussion create a lawyer-client relationship?

No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.

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