Section 7 in The Foreign Awards (Recognition And Enforcement) Act, 1961
7. Conditions for enforcement of foreign awards .-(1) A foreign award may not be enforced under this Act-
( a ) if the party against whom it is sought to enforce the award proves to the Court dealing with the case that-( i ) the parties to the agreement were, under the law applicable to them, 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( ii ) 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( iii ) the award deals with questions not referred or contains decisions on matters beyond the scope of the agreement:Provided that if the decisions on matters submitted to arbitration can be separated from those not submitted, that part of the award which contains decisions on matters submitted to arbitration may be enforced; or( iv ) 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 arbitration took place; or( v ) the award has not yet become binding on the parties or 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; or( b ) if the Court dealing with the case is satisfied that-( i ) the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or( ii ) the enforcement of the award will be contrary to public policy.(2)If the Court before which a foreign award is sought to be relied upon is satisfied that an application for the setting aside or suspension of the award has been made to a competent authority referred to in sub-clause ( v ) of clause ( a ) of sub-section (1), the Court may, if it deems proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to furnish suitable security.
