What is the difference between recognition and enforcement?

What is the difference between recognition and enforcement?

The difference was outlined by the Full Court as follows: Simplistically, recognition refers to the formal confirmation by a municipal court that an arbitral award is authentic and has legal consequences under municipal law. Enforcement goes a step further.

What is enforcement of arbitral award?

The arbitral award is final and binding on the parties to the dispute and for the enforcement of such award the party has to move to the court[6]. Arbitration allows the parties to have a private dispute resolution procedure and avoid national courts. An award decided has judicial binding effect on the parties.

How an award is enforced?

Once an award is found to be enforceable by a court, it would be enforced like a decree of that court (in accordance with relevant provisions of the CPC – as explained below). On a decree being passed, execution proceedings can be initiated for enforcement of the decree.

How are arbitral awards Recognised and enforced under the Icsid Convention?

An award of a Tribunal is binding on all parties to the proceeding and each party must comply with it pursuant to its terms (Article 53(1) of the ICSID Convention). Certified copies are sent to the parties on the date of dispatch of the award, and the parties may request additional copies at any time.

What is the difference between award and judgment?

An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law.

When can the arbitral award be enforced?

However, section 43 of the Act sets out that the limitation act applies to arbitration. Article 136 of the limitation act prescribes that the application for enforcement must be made within 12 years from the date at which it becomes enforceable.

Are arbitration awards enforceable?

Under AAA rules, parties to AAA cases agree that the arbitration award can be entered as a judgment in any federal or state court with jurisdiction. This means that the court can enforce it like it was any other court judgment.

Is foreign award enforceable in India?

As per the new Act, the application for enforcement of a foreign award will now only lie to High Court. Once an application for enforcement of a foreign award is made, the other party has the opportunity to file an objection against enforcement on the grounds recognized under Section 48 of the Act.

How the New York Convention awards are enforced?

The two basic actions contemplated by the New York Convention are the recognition and enforcement of foreign arbitral awards and the referral by a court to arbitration.

What is the purpose of the Icsid Convention?

The ICSID Convention is a multilateral treaty formulated by the Executive Directors of the World Bank to further the Bank’s objective of promoting international investment. ICSID is an independent, depoliticized and effective dispute-settlement institution.

What is recognition of foreign Judgement?

The “recognition” of a foreign judgment occurs when the court of one country or jurisdiction accepts a judicial decision made by the courts of another “foreign” country or jurisdiction, and issues a judgment in substantially identical terms without rehearing the substance of the original lawsuit.