Due to expansion of
international trade in recent years, the business world faces lot of disputes
or differences between them. These differences are arising from international
Commercial transactions. In early times, courts taken lot of time for make
settlement of dispute but now a days if any dispute arose between the parties
at any level whether is contractual  or
not. It would be settled within few weeks or months. Dispute should be settled
by that country, where it is occurred. On contrary, if matters forward to other
countries for make settlement between parties, it is very complicated,
expensive and time wasting process. Therefore, most of businessman chooses a
path of arbitration for quicker and cheaper remedy. Arbitration Act made
reflection upon legislative enactments, international treaties and other measures,
they shall be arbitration being solid in legal arena.

India plays vital role
in globalization countries. The level of increasing globalization had raised
international business disputes too also. Therefore, it is foremost duty of
foreign Arbitral Institutions to render a foreign arbitral award to parties.
Foreign judgment can be prevailed in India by filing of proceedings in
execution or by suit made by parties in it. An Arbitral award is made by
arbitral tribunal on the determination of dispute between the parties. It is
considered much beneficial method for the resolution of dispute between parties
at commercial level. It is easier method to give foreign award in foreign
country instead of case filed under court. All kinds of award shall be
regulated and invoked by Arbitration & Conciliation Act, 1996 whether it may
be Domestic or foreign award. Foreign arbitral award shall be enforced through
New York Convention and Geneva Convention & Non Arbitrable awards executed
in India under the sake of equity, Justice and conscience. Earlier arbitration
Act had three kinds: 1. Arbitration Act, 1940 2. Enforcement of foreign award
between two statues one dealt with Geneva Convention 1937, New York Convention
awards 1961 respectively.

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The Geneva Convention

There are various
differences or disputes between one country to another, at international level.
There shall be number of bilateral treaties between nations. Parties want to
resolve their conflict by foreign award after First World War have been the
Geneva Protocol on Arbitration clauses of 1923. The Geneva Convention on the
execution of foreign Arbitral Awards of 1927 and Untied Nation Convention
pertains to Recognition and enforcement of foreign arbitral awards of 1958.

Different contracting
states shall make an application to arbitral tribunal for resolution of dispute
at commercial level. Dispute may be existing or future in nature. Contracting
parties may state their limits and obligations relating to commercial contracts.
They can refer their matter to the arbitrator with their mutual consent. If a
suit instituted under court, court can refer parties to the arbitration if
parties want to proceed their matters through the arbitration. If the
conditions which are mandatory for arbitration agreement does not fulfilled, it
shall be declared null or void and inoperative. This convention is
supplementary to Protocol, awards should also be made under this protocol.
State parties can only become a party to the convention. Both contraction
parties shall be binding during the arbitration agreement. Awards can be
executed in other territory on following conditions:

An arbitral award was
made according to arbitration agreement which is valid under the law. Award is
capable of being made by one country by arbitration agreement. Parties must be
agreed with the award rendered by Arbitral Tribunal. The award shall be made by
arbitrator has binding in nature and no proceedings shall be instituted against
the award. It can be challenged under some prescribed time period, afterwards
party loose his right. The award must be made in favor of public policy. It
should not be against the public policy of India. On other hand, court can also
make refusal for enforcement of an award if it finds that: –

1.     
The award is not capable of being given.

2.     
Party has not aware about the
institution of case against himself.

3.     
Party did not given sufficient notice to
other party

4.     
The award made by an arbitrator should
be beyond its limits or opposed to public policy of India, it is against the
terms and conditions of agreement. Party can seek for annulment of an award
from the court.

There are various
grounds where Geneva Convention has been criticized.

a.      
If there is confusion about the
jurisdiction of contracting states which defines the scope and application of
parties. It violates the provision of international arbitration law.
Jurisdiction of state can be challenged by either of contracting parties.

b.     
One party wants to make enforcement of
an award in one country but it is difficult to prove that arbitral tribunal was
established and governed by law of another country so that award has become
final.

c.      
Party makes objection and creates hurdle
for enforcement of arbitral award. One party seeks to execution of an award but
other party made refusal for execution on any ground.