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Section 44 of the Arbitration and Conciliation Act, 1996: Definition of Foreign Award

Section 44 defines the expression "foreign award" for Chapter I of Part II of the Arbitration and Conciliation Act, 1996. The definition is tied to the New York Convention and applies only when the statutory requirements concerning the nature of the dispute, the arbitration agreement and the territory in which the award is made are satisfied.

Updated for current law: September 7, 2026.

Key point: An arbitral award made outside India is not automatically a "foreign award" under Section 44. The award must satisfy the statutory conditions in Section 44, including the commercial relationship requirement, a written arbitration agreement covered by the New York Convention and a notified reciprocal territory.

Section 44: Definition

In this Chapter, unless the context otherwise requires, "foreign award" means an arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India, made on or after the 11th day of October, 1960 -

(a) in pursuance of an agreement in writing for arbitration to which the Convention set forth in the First Schedule applies, and

(b) in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made, may, by notification in the Official Gazette, declare to be territories to which the said Convention applies.

Official statute: India Code.

What is a "foreign award" under Section 44?

Section 44 is a definition provision. It identifies the class of arbitral awards that fall within Chapter I of Part II of the 1996 Act, which deals with New York Convention awards. The provision does not by itself declare every overseas award enforceable. Enforcement is governed by the later provisions of the Chapter, including Sections 46, 47, 48 and 49.

In practical terms, an award must satisfy all of the essential elements of Section 44 before it can be treated as a foreign award under this Chapter.

Requirement of a commercial legal relationship

The dispute must arise from a legal relationship, whether contractual or not, which is considered commercial under the law in force in India. The expression is broad enough to include commercial relationships that do not arise solely from a conventional contract, provided the underlying legal relationship is recognized as commercial under Indian law.

Important: The word "commercial" in Section 44 is a statutory condition. Whether a particular relationship is commercial depends on the nature and legal character of the transaction or relationship under Indian law.

Written arbitration agreement covered by the Convention

Section 44(a) requires the award to have been made pursuant to an arbitration agreement in writing to which the Convention in the First Schedule applies. This connects the definition directly with the New York Convention framework incorporated into the 1996 Act.

The existence and legal relevance of the written arbitration agreement may also become important at the referral and enforcement stages under Section 45 and Section 48.

Award must be made in a notified reciprocal territory

Section 44(b) requires the award to be made in a territory which the Central Government has declared, by notification in the Official Gazette, to be a territory to which the New York Convention applies for the purposes of the Act.

This means that the place where the award is made is legally significant. A foreign seat or foreign place of arbitration does not, by itself, satisfy Section 44 unless the statutory notification requirement is also met.

Section 44 and the New York Convention

Chapter I of Part II of the Arbitration and Conciliation Act, 1996 gives effect in India to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, commonly known as the New York Convention. Section 44 provides the threshold definition, while the later provisions deal with referral, binding effect, evidence, grounds for refusal and enforcement.

  • Section 45 - reference by judicial authority to arbitration.
  • Section 46 - when a foreign award is binding.
  • Section 47 - evidence required for enforcement.
  • Section 48 - conditions for refusal of enforcement.
  • Section 49 - enforcement of a foreign award.

Supreme Court interpretation of Section 44

The Supreme Court has explained that a New York Convention award falls within Section 44 where it concerns a commercial dispute, is based on a written arbitration agreement and is made in a State or territory with which India has the required reciprocal notification. The Court has also reiterated that Part II governs enforcement in India of foreign-seated awards falling within the Convention framework.

Official Supreme Court resources: Supreme Court of India and Supreme Court Reports search.

Section 44 in simple terms

A foreign award under Section 44 is therefore not merely an award made abroad. It is a New York Convention award arising from a commercial legal relationship, made pursuant to a written arbitration agreement and made in a territory notified by the Central Government for reciprocal enforcement under the Convention.