Geneva Convention Awards

Introduction  

When businesses or individuals from different countries enter into disputes, they often turn to arbitration rather than traditional court litigation. The Geneva Convention Awards provisions in Indian arbitration law provide a framework for recognizing and enforcing these international arbitral decisions. 

What are Geneva Convention Awards? 

• A Geneva Convention Award refers to an arbitral decision made after July 28, 1924, in commercial disputes between parties from countries that are signatories to the Geneva Convention. These awards must involve at least two parties subject to different jurisdictions among the convention countries, as notified by the Central Government of India. 
• The key requirement is that the arbitration agreement must be valid under the Protocol set forth in the Second Schedule, and the award must be made in territories recognized under the Convention outlined in the Third Schedule. 

The Principle of Referral to Arbitration 

• One of the fundamental aspects of this framework is that Indian courts respect arbitration agreements. When a judicial authority receives a dispute involving parties covered under these provisions, and there exists a valid arbitration agreement, the court must refer the parties to arbitration upon application. This demonstrates India's commitment to honoring international arbitration agreements and preventing parallel proceedings. 
• However, the court retains its competence if the arbitration agreement becomes inoperative or cannot proceed, ensuring that parties are not left without recourse. 

Enforceability and Binding Nature 

Once a foreign award meets the necessary conditions, it is treated as binding on the parties for all purposes. This means parties can rely on such awards not just for enforcement, but also as a defense, set-off, or in any other legal proceedings in India. When enforced, the award is deemed to be a decree of the court itself, giving it the same force as a domestic court judgment. 

Conditions for Enforcement 

Primary Requirements: 

• The award must stem from a valid arbitration submission under applicable law. 
• The subject matter must be capable of settlement by arbitration under Indian law. 
• The tribunal must have been properly constituted according to the parties' agreement and the governing arbitration procedure. 
• The award must be final in the country where it was made. 
• Enforcement must not violate Indian public policy or law. 

Grounds for Refusal:  

• Even when primary conditions are met, courts may refuse enforcement if the award has been annulled in its home country, if proper notice wasn't given to the defending party, or if the award exceeds the scope of the arbitration submission. 
• Importantly, an award conflicts with Indian public policy only in limited circumstances: when induced by fraud or corruption, when it contravenes fundamental Indian law, or when it violates basic notions of morality or justice. Courts cannot review the merits of the dispute itself when examining public policy concerns. 

Procedural Requirements 

• Parties seeking enforcement must produce the original award or authenticated copy, evidence of its finality, and proof that required conditions are satisfied. Documents in foreign languages must be translated into English and certified appropriately. 
• Appeal Rights 
• Orders refusing to refer parties to arbitration or refusing to enforce foreign awards are appealable. However, no second appeal is permitted, though appeals to the Supreme Court remain available under applicable law. 

Conclusion 

The Geneva Convention Awards framework represents India's commitment to international commercial arbitration. By providing clear procedures for recognition and enforcement while maintaining necessary safeguards, it facilitates cross-border commerce and dispute resolution. Understanding these provisions is essential for anyone engaged in international business transactions involving parties from Geneva Convention countries.