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Section 55: Foreign awards when binding

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

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Act 1996
Section 54 All 87 Sections Schedules (4th, 5th, 7th) Section 56

Legal Commentary & Landmark Judgments: Section 55

Section 55 of the Arbitration and Conciliation Act, 1996 establishes that any foreign award which would be enforceable under Chapter II (Geneva Convention) shall be treated as binding for all purposes on the persons between whom it was made.

  • Binding Effect under Geneva Convention: Any foreign award which would be enforceable under this Chapter shall be treated as binding for all purposes on the persons between whom it was made.
  • Reliance in Indian Courts: May accordingly be relied on by any of those persons by way of defence, set-off, or otherwise in any legal proceedings in India.
  • Res Judicata Operation: Confers res judicata finality upon recognized Geneva Convention arbitral determinations.
Key Landmark Precedents:
  • Renusagar Power Co. Ltd. v. General Electric Co., 1994 Supp (1) SCC 644: The Supreme Court affirmed that a valid Geneva Convention award creates a binding estoppel between the parties that must be recognized by Indian courts.
  • Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., (2011) 8 SCC 333: Discussed the statutory finality of foreign awards under Chapter II.
Courtroom Practice & Strategic Litigation Guidance:

Use Section 55 to plead an existing Geneva Convention award as an absolute bar against a domestic plaintiff attempting to re-litigate the same contractual controversy.

Section 54 All 87 Sections Schedules (4th, 5th, 7th) Section 56