Sep 05, 2023

Objection to a Consent Award and its Enforcement?

Sometimes the dispute has just begun when the parties choose to “settle” their dispute. In this particular case the settlement was also recorded by way of a consent award issued by an arbitrator in an ICC arbitration.

The job was far from done, as the respondents in the arbitration failed to fulfil their payment obligations under the consent award. The award holder initiated enforcement proceedings for the consent award before the High Court of Delhi. In these proceedings, the applicability of the New York Convention (recognised by Part II of Arbitration and Conciliation Act, 1986) to foreign consent awards was challenged. Tireless research aided some novel submissions before the Delhi High Courts to drive home what should have been a trite point that recognition of consent awards was not excluded under the New York Convention. By confirming the recognition and enforcement of foreign consent awards in India, the Delhi High Court has taken one large stride towards the pro-enforcement bias in support of the arbitration process in India .[1] A special leave petition challenging the aforementioned order was dismissed by the Supreme Court .[2]

AZB appeared for the claimant / award holder.

Access the order here.

[1] O.M.P.(EFA)(COMM.) 11 of 2021.

[2] SLP(C) No. 015891 of 2023.




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