ARBITRAL AWARDS

The Recognition and Enforcement of the Arbitral Awards

Table of Contents

Chapter 1: Introduction1

Background of the study1

Problem Statement2

Purpose of the study3

Significance of the study3

Rationale of the study4

Chapter 2: Literature Review6

Chapter 3: Methodology12

Research Design12

Literature Search12

Keywords13

References14

Chapter 1: Introduction

Background of the study

International arbitration is a leading means for the resolution of commercial disputes of an international character. There are almost as many definitions of international arbitration as there are commentators on the subject. Moreover, the term encompasses a whole kaleidoscope of different specific dispute resolution procedures (both institutional and non-institutional) that might, in turn, be applied to a broad spectrum of different forms of dispute. In general terms, however, international arbitration involves the definitive and binding resolution of an international dispute between two or more parties, pursuant to an agreement between those parties, by an independent, nongovernmental decision maker or decision makers. (Born 2009:173)

Once an arbitral tribunal has made its award, it has fulfilled its function, and its existence comes to an end. If the award is not carried out voluntarily, that award may be enforced in proceedings in one or more national courts. The New York Convention, which most major trading nations have ratified, imposes on signatory states certain uniform obligations in terms of the enforcement of international arbitration awards. Once rendered, an arbitration award is final and binding; an appeal against the award typically lies only in limited circumstances defined by the arbitration legislation of the jurisdiction where the award is rendered (the most common grounds of appeal include that the arbitral tribunal lacked the substantive jurisdiction to make the award or that the tribunal breached standards of procedural fairness). (Cheshire 2010: 198)

Problem Statement

A state often enters into various types of contractual relations with foreign private parties such as oil and mineral concessions, joint ventures, production-sharing contracts, contracts of works, technical assistance contracts, agricultural and manufacturing concessions, transfer of technology, licensing contracts etc. It is the usual phenomenon that both the parties will perform their obligations as per the terms of contract. Again, it is also typical that dispute may arise out of breach of contract. Parties in that case may agree to refer the dispute to arbitration. The validity of arbitration proceedings originates from either the contractual agreement covering an arbitration clause or a separate dispute settlement agreement to that matter. An arbitration award is a determination on the merits by an arbitration tribunal in an arbitration proceeding, and is analogous to a judgment in a court of law. (Emmanuel, 2009: 136)

Although arbitration awards are characteristically an award of damages against a party, tribunals usually have a range of remedies that can form a part of the award.The tribunal may order the payment of a sum of money (conventional damages), make a declaration, order injunctive relief, specific performance of a contract, the rectification, setting aside or cancellation of a deed etc. If it is a foreign arbitral award or where there is involvement of two states or foreign nationals or companies, the question arises how it will be enforced? Whether domestic court ...