Due and cheaper remedy. Arbitration Act made reflection upon

Due to expansion of
international trade in recent years, the business world faces lot of disputes
or differences between them. These differences are arising from international
Commercial transactions. In early times, courts taken lot of time for make
settlement of dispute but now a days if any dispute arose between the parties
at any level whether is contractual  or
not. It would be settled within few weeks or months. Dispute should be settled
by that country, where it is occurred. On contrary, if matters forward to other
countries for make settlement between parties, it is very complicated,
expensive and time wasting process. Therefore, most of businessman chooses a
path of arbitration for quicker and cheaper remedy. Arbitration Act made
reflection upon legislative enactments, international treaties and other measures,
they shall be arbitration being solid in legal arena.

India plays vital role
in globalization countries. The level of increasing globalization had raised
international business disputes too also. Therefore, it is foremost duty of
foreign Arbitral Institutions to render a foreign arbitral award to parties.
Foreign judgment can be prevailed in India by filing of proceedings in execution
or by suit made by parties in it. An Arbitral award is made by arbitral
tribunal on the determination of dispute between the parties. It is considered
much beneficial method for the resolution of dispute between parties at
commercial level. It is easier method to give foreign award in foreign country
instead of case filed under court. All kinds of award shall be regulated and
invoked by Arbitration & Conciliation Act, 1996 whether it may be domestic or
foreign award. Foreign arbitral award shall be enforced through New York
Convention and Geneva Convention & Non Arbitrable awards executed in India
under the sake of equity, Justice and conscience. Earlier arbitration Act had
three kinds: 1. Arbitration Act, 1940 2. Enforcement of foreign award between
two statues one dealt with Geneva Convention 1937, New York Convention awards
1961 respectively.

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The Geneva Convention

There are various differences
or disputes between one country to another, at international level. There shall
be number of bilateral treaties between nations. Parties want to resolve their
conflict by foreign award after First World War have been the Geneva Protocol
on Arbitration clauses of 1923. The Geneva Convention on the execution of
foreign Arbitral Awards of 1927 and Untied Nation Convention pertains to
Recognition and enforcement of foreign arbitral awards of 1958.

Different contracting
states shall make an application to arbitral tribunal for resolution of dispute
at commercial level. Dispute may be existing or future in nature. Contracting parties
may state their limits and obligations relating to commercial contracts. They
can refer their matter to the arbitrator with their mutual consent. If a suit instituted
under court, court can refer parties to the arbitration if parties want to
proceed their matters through the arbitration. If the conditions which are
mandatory for arbitration agreement does not fulfilled, it shall be declared null
or void and inoperative. This convention is supplementary to Protocol, awards
should also be made under this protocol. State parties can only become a party
to the convention. Both contraction parties shall be binding during the arbitration
agreement. Awards can be executed in other territory on following conditions:

An arbitral award was
made according to arbitration agreement which is valid under the law. Award is
capable of being made by one country by arbitration agreement. Parties must be
agreed with the award rendered by Arbitral Tribunal. The award shall be made by
arbitrator has binding in nature and no proceedings shall be instituted against
the award. It can be challenged under some prescribed time period, afterwards
party loose his right. The award must be made in favor of public policy. It should
not be against the public policy of India. On other hand, court can also make
refusal for enforcement of an award if it finds that: –

1.     
The award is not capable of being given.

2.     
Party has not aware about the institution
of case against himself.

3.     
Party did not given sufficient notice to
other party

4.     
The award made by an arbitrator should
be beyond its limits or opposed to public policy of India, it is against the
terms and conditions of agreement. Party can seek for annulment of an award
from the court.

There are various
grounds where Geneva Convention has been criticized.

a.      
If there is confusion about the
jurisdiction of contracting states which defines the scope and application of
parties. It violates the provision of international arbitration law. Jurisdiction
of state can be challenged by either of contracting parties.

b.     
One party wants to make enforcement of
an award in one country but it is difficult to prove that arbitral tribunal was
established and governed by law of another country so that award has become
final.

c.      
Party makes objection and creates hurdle
for enforcement of arbitral award. One party seeks to execution of an award but
other party made refusal for execution on any ground.