Section 58 of the Arbitration and Conciliation Act, 1996 - Enforcement of Foreign Awards

Section 58 forms part of Part II, Chapter II of the Arbitration and Conciliation Act, 1996, which deals with Geneva Convention Awards. It states the legal consequence that follows once the Court is satisfied that a foreign award is enforceable under Chapter II: the award is deemed to be a decree of the Court.

Text of Section 58 - Enforcement of foreign awards

Meaning and legal effect of Section 58

Section 58 is the final enforcement step in the Geneva Convention Awards framework contained in Part II, Chapter II. The provision does not itself set out the evidentiary requirements or the grounds on which enforcement may be allowed or refused. Those matters are principally addressed in Section 56 and Section 57.

Once the competent Court is satisfied that the foreign award is enforceable under Chapter II, Section 58 automatically gives the award the statutory status of a decree of that Court.

When does Section 58 apply?

Section 58 applies only after the Court reaches the conclusion that the foreign award is enforceable under Chapter II. That conclusion is reached in the statutory context of the provisions preceding Section 58.

• Section 53 defines the relevant Geneva Convention foreign award.
• Section 55 explains when such an award is binding and how it may be relied on.
• Section 56 specifies the evidence required with an enforcement application.
• Section 57 sets out the enforceability conditions and refusal grounds.
• Section 58 provides the consequence after the Court is satisfied that the award is enforceable.

Connection with Section 56 - Evidence

Section 56 requires the enforcing party to produce the original award or a duly authenticated copy, evidence that the award has become final, and evidence necessary to establish specified conditions under Section 57. It also contains the translation requirements for foreign-language documents.

The Explanation to Section 56 defines "Court" for Section 56 and the following provisions of Chapter II as the appropriate High Court according to the jurisdictional test stated in that Explanation. That definition therefore applies to Section 58.

Connection with Section 57 - Conditions for enforcement

Section 57 is central to the Court's determination under Section 58. It requires, among other matters, a valid submission to arbitration, arbitrability under Indian law, proper constitution of the tribunal and procedure, finality of the award in the country where it was made, and consistency of enforcement with the public policy and law of India.

Section 57 also identifies circumstances in which enforcement must be refused and provides an additional discretionary mechanism where another ground for contesting validity is established under the law governing the arbitration procedure.

What does "deemed to be a decree of the Court" mean?

The phrase creates a statutory legal fiction. Once the enforceability determination required by Section 58 has been made, the foreign award is treated by law as a decree of the Court.

Section 58 therefore avoids the need for a separate civil suit merely to convert the enforceable foreign award into a decree. The award acquires decree status by operation of the statute once the Court is satisfied that the Chapter II requirements are met.

The procedural steps for execution or other consequential relief depend on the applicable procedural law, the nature of the decree, the relief granted by the award, jurisdiction, and the facts of the particular enforcement proceeding.

Section 58 and Section 55 - binding effect versus decree status

Section 55 states that a foreign award which would be enforceable under Chapter II is binding between the persons concerned and may be relied on in Indian legal proceedings by way of defence, set-off, or otherwise.

Section 58 addresses a different point: once the Court is satisfied that the award is enforceable, the award is deemed to be a decree of that Court.

Related provisions

Section 58 should be read with Section 53 - Interpretation, Section 54 - Referral to arbitration, Section 55 - Foreign awards when binding, Section 56 - Evidence, Section 57 - Conditions for enforcement, Section 59 - Appealable orders, and Section 60 - Savings.