CFA213 | Enforcement of Foreign Arbitral Awards

Admittedly, parties involved in transnational contracts regard arbitration as the most suitable method for resolving their commercial disputes. One of the most important features of such contracts is that they do provide for settlement of any dispute/difference arising under these contracts would be settled through arbitration. Since commercial arbitration in transnational context presents peculiar problems not only with the procedures to be adopted at the national levels but also with regard to the recognition and enforcement of arbitral awards, states realized first the need to harmonize national laws with regard to the enforcement of arbitral awards rendered in foreign jurisdictions.

The task of enforcing foreign arbitral awards was accomplished with the adoption and coming into force of the New York Convention (NYC), 1958. Put into practice for little over six decades, the NYC even today holds the preeminent position by providing international currency for arbitration agreements and foreign arbitral awards.