ENFORCEMENT OF ARBITRAL AWARDS

Under the Arbitration and Conciliation (Amendment) Act, 2015, there are explicit provisions
relating to enforcement of domestic as well as foreign awards. These are as follows:

Enforcement of Awards

Domestic Awards Foreign Awards

Geneva
Section 36 New York Convention
(Part I) Convention
(Chapter II of
(Chapter I of Part II)
Part II)

ENFORCEMENT OF AWARDS UNDER SECTION 36

Section 36 of the Arbitration and Conciliation (Amendment) Act, 2015 deals with the
enforcement of domestic awards. It provides that an award shall be enforced once the time for
making an application to set aside the award under Section 34 of the Act has expired. Such award
shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the
same manner as if it were a decree of the court. The Amendment Act, by way of adding sub-
clause (2) to Section 36 provides that the filing of an application to set aside the arbitral award
under Section 34 shall not act as an automatic stay on the enforcement of the said award. Such an
award shall be stayed only if the Court grants an order of stay, on a separate application made for
that purpose. If on such an application being filed, the Court grants an order of stay of the arbitral
award, it shall record its reasons in writing. This provision would act as a deterrent against
frivolous applications seeking to set aside arbitral awards and it will also permit the courts to
impose terms on the party challenging the award including the power to order deposit of
amounts, prior to admission of the stay application.
It is pertinent to note that under the Arbitration and Conciliation Act, 1996(Old Act), the award
could only be enforced once the time for making an application to set aside the arbitral award
under Section 34 had expired, or such application having been made, it had been refused. It is
further significant to note that the issuance of notice by the Court on the application under
Section 34 used to operate as an automatic stay on the enforcement of the said award. There was
no specific provision stating that a separate application before the Court needs to be filed to
obtain an order of stay of the operation of the award.

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