Enforcement Of Foreign Arbitral Awards In The Light Of The Foreign Exchange Management Act (FEMA) 1999: A Critical Analysis
- IJLLR Journal
- Oct 28
- 1 min read
Marisha Shandilya, Advocate at Patna High Court.
ABSTRACT
The enforcement of foreign arbitral awards in India is governed primarily by the Arbitration and Conciliation Act, 1996, which recognizes awards made in countries that are signatories to the New York or Geneva Conventions, subject to compliance with India’s public policy. However, the successful execution of these awards is often complicated by India’s foreign exchange regulations, primarily under the Foreign Exchange Management Act (FEMA), which govern cross-border remittances and the inflow or outflow of foreign currency. Judicial interventions further add to the complexity, as courts may interpret or override provisions of arbitration or foreign exchange law, leading to uncertainty in enforcement outcomes. These overlapping legal frameworks create challenges for parties seeking to enforce foreign awards, potentially affecting investor confidence and India’s reputation as an arbitration-friendly jurisdiction. This study critically examines the interplay between arbitration laws, FEMA, and judicial practices, highlighting the need for clarity, harmonization, and reform to ensure efficient enforcement of foreign arbitral awards and to facilitate international trade and investment in India.
Keywords: Foreign Arbitral Awards, FEMA, Arbitration and Conciliation Act, Judicial Intervention.
