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Section 46: When foreign award binding

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

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Legal Standard
Competent Court / Tribunal
Act 1996
Section 45 All 87 Sections Schedules (4th, 5th, 7th) Section 47

Legal Commentary & Landmark Judgments: Section 46

Section 46 of the Arbitration and Conciliation Act, 1996 defines when a foreign award made under the New York Convention shall be treated as binding for all purposes on the persons between whom it was made.

  • Binding Character of Foreign Award: 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.
  • Reliance in Indian Legal Proceedings: May accordingly be relied on by any of those persons by way of defence, set-off, or otherwise in any legal proceedings in India.
  • New York Convention Alignment: Enforces Article III of the New York Convention, giving recognized foreign arbitral awards res judicata effect across Indian courts.
Key Landmark Precedents:
  • Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., (2011) 8 SCC 333: The Supreme Court authoritatively held that a foreign award is recognized and enforceable as a decree of the court; a separate suit to enforce a foreign award is completely barred by Section 46.
  • Vijay Karia v. Prysmian Cavi E Sistemi SRL, (2020) 11 SCC 1: The Supreme Court highlighted that Indian courts adopt a pro-enforcement bias towards foreign awards under Section 46, refusing enforcement only on narrow grounds of fundamental policy.
Courtroom Practice & Strategic Litigation Guidance:

In cross-border litigation, plead a foreign award under Section 46 as a complete bar of res judicata against any attempt by the counterparty to initiate parallel domestic suits in Indian courts.

Section 45 All 87 Sections Schedules (4th, 5th, 7th) Section 47