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CPC Contemplates Execution of a Foreign Decree and Not an Order: Delhi High Court

[20 July 2022] The High Court of Delhi has held that remedy before the foreign arbitral tribunal would not be inefficacious when the bulk of the assets of a party are located in India as the interim order in a foreign-seated arbitration is not enforceable under the A&C Act.

The Bench of Justice Sanjeev Narula also held that an interim award passed in arbitration with seat in India is enforceable under Section 17(2) of the Act, however, there is no provision in the Act for the enforcement of an interim order passed in a foreign seated arbitration, therefore, any meaningful interim relief related to assets located in India can only be granted by Indian Courts.

The Court also observed that an application for interim relief qua the assets located in India would not be efficacious before the seat court as well as its order can also not be directly enforced under the provisions of the Civil Procedure Code, 1908. It observed that CPC only contemplates execution of a foreign decree and not an order.

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