Enforcement of arbitral awards under the new york convention

The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards is a widely adopted treaty that provides a framework for the recognition and enforcement of foreign arbitral awards across different countries. The Convention was adopted in 1958 and has been ratified by over 160 countries, including most major economies.

The Convention's main objective is to ensure that arbitral awards rendered in one country are recognized and enforced in another country, without being subject to lengthy and costly court proceedings. To achieve this, the Convention sets out a simplified and streamlined procedure for the recognition and enforcement of foreign arbitral awards.

Here are the key provisions of the New York Convention:

Article II: Recognition and Enforcement

1. Each Contracting State shall recognize arbitral awards as binding and shall enforce them in accordance with the rules of procedure of the territory where the award is relied upon, unless otherwise agreed by the parties.
2. The recognition and enforcement of an arbitral award may be refused, at the request of the party against whom it is invoked, only if that party furnishes to the competent authority where the recognition and enforcement is sought, proof that:
   • The parties to the arbitration agreement were under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or
   • The party was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings, or was otherwise unable to present his case; or
   • The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration, provided that the award contains a statement of the reasons upon which the award is based; or
   • The composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the award was made; or
   • The award has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made.

Article V: Grounds for Refusal of Recognition and Enforcement

1. Recognition and enforcement of an arbitral award may also be refused if the competent authority in the country where recognition and enforcement is sought finds that:
   • The recognition or enforcement of the award would be contrary to the public policy of that country; or
   • The award has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made.

Key Takeaways

1. The New York Convention provides a simplified and streamlined procedure for the recognition and enforcement of foreign arbitral awards.
2. The Convention sets out a list of grounds for refusal of recognition and enforcement, which are limited to specific circumstances, such as incapacity, lack of notice, or procedural irregularities.
3. The Convention does not require a full-scale judicial review of the arbitral award, but rather a limited review to ensure that the award was rendered in accordance with the arbitration agreement and the law of the country where the award was made.
4. The Convention's provisions are designed to promote the enforcement of arbitral awards and to reduce the risk of conflicting judgments between different countries.

In summary, the New York Convention provides a powerful tool for the recognition and enforcement of foreign arbitral awards, and its provisions have been widely adopted by countries around the world.