Introduction of Section 46

Section 46 of the arbitration and conciliation act aims to minimize judicial intervention and encourage arbitration as an effective, fair and alternative dispute resolution mechanism. This act is designed to ensure that parties get opportunity to to challenge certain interim decisions of the tribunal that might have a significant impact on the case.

Section 46 of Arbitration and conciliation act

 When foreign award binding

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.

Landmark Judgements of Section 46

Orient Middle East Lines Ltd vs Brace Transport Corp of Manrovia, 1986

Procedural laws of the country in which the award is relied upon would govern the procedural aspect of the filing of the foreign award and that would include the question of limitation also being a procedural one. Thus, it cannot be said that the legislature intended that a foreign award can be enforced at any time , though a domestic award can be enforced only within a particular time.

Ludwig Wunshe & Co vs Raunaq International Ltd, 1983

The procedure for enforcing foreign awards has to be the same as followed for enforcing domestic awards, subject, of course, to this that the provisions of the act shall prevail if there is any consistency between the provisions of the act and other acts which apply to domestic awards.

Minister of Public works of the government if kuwait vs sir Fredrick Snow, 1983

In view of article III of the New York convention that ‘Each contracting state shall recognise arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon…’, all issues as to limitation are procedural in nature.

Conclusion of Section 46

The above-mentioned section of arbitration and conciliation allows for a limited review of decisions made by arbitral tribunal decisions in matters related to interim relief, evidence-taking, and in some other procedural aspects that are not directly concerned with the final arbitral award.