Foreign Arbitral Award Enforcement

Introduction to Foreign Arbitral Award Enforcement

Foreign Arbitral Award Enforcement is a legal proceeding through which a decision or award by a competent Tribunal is recognized and made legally binding on other Countries. It increases efficiency in the effective enforcement of the terms of their arbitration award and obtaining the remedies or damages awarded to them. Imperial Law Associates, widely recognized for dealing with International Clients and Foreign Jurisdictions, is highly competent in enforcing arbitral awards from Nepal to International Countries and Vice Versa.

Laws Governing Award Enforcement

The UN Convention of the Recognition and Enforcement of Foreign Arbitral Awards commonly known as the New York Convention adopted in 1958 is the recognized law for the enforcement of Arbitral Awards in International Disputes. It has provisioned that parties that seek Enforcement of Arbitration must apply for a competent Court and the court follows the procedure outlined in this convention to enforce the Arbitration Award.

Foreign Arbitral Awards as binding and enforceable similar to Court Decisions and it is the preferred mechanism for solving International Commercial Disputes. Member States that have adopted this Convention must provide the aggrieved parties with a reliable mechanism for Enforcement. In the context of Nepal, the Arbitration Act 1999 incorporates the procedure and provisions for Arbitration and its enforcement in Nepal.

Enforcement of Foreign Arbitral Award

The following Conditions should be fulfilled for the Enforcement of the Foreign Arbitral Award in Nepal:

  1. Appointment of the Arbitrator must have been made following the agreement that the parties consented upon
  2. Both Parties must have obtained due notification of the Proceedings of the Arbitration.
  3. The Award or the Decision should be concerned with the subject matter of the Arbitrator following the Arbitration Agreement.
  4. The final and Binding Nature of the Awards are among the key components.
  5. Filing of the Arbitral Award Enforcement within 90 Days from the Arbitral Award Date to a competent Court is also instrumental in enforcing the Award.

No Enforcement of Foreign Award Arbitral in Nepal

  1. If the implementation of the Arbitral Award harms public security or Utility and brings deleterious impact upon Public Policy.
  2. If the Settled Dispute is legally impossible or impermissible to be settled through Arbitration under the Laws of Nepal.

Process of Foreign Arbitral Award Enforcement

  1. Determination of Validity of Arbitration Agreement between the Parties
  2. Meeting of Criteria of Enforcement set by the New York Convention
  3. Filing an Application to the High Court of Nepal with a relevant application, an original copy of the Arbitral Award, and the Arbitration Agreement.
  4. Dispense appropriate notice of Proceedings and allow the opposing party to challenge the enforcement.
  5. Issuance of Enforcement Order by the High Court and successful enforcement process by seeking remedies as specified in the Award.

To understand the detailed proceedings of Arbitration in Nepal, refer to this Publication by our Arbitration Lawyers:

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Filing of Application for Award Enforcement

The New York Convention has provisioned that the initial steps for enforcing the Arbitral Award is through filing of Application at the competent court (High Court in Nepal) within 90 Days of the Award.

Our widely appreciated Legal Professionals have experience in filing Applications for Award Enforcement in the High Courts of Nepal along with the submission of all required documents.

Due Diligence of the Arbitration Agreement

The Arbitration Act states that the validity of the Arbitration Agreement is an essential requisite of the enforcement proceedings. 

Our Team conducts investigative due diligence of the Agreement with detailed reviews and compliance checks to certify the validity of the Arbitration Agreement before initiating the Arbitration Enforcement Proceeding.

Exclusive Legal Advice

Our Corporate Law Firm also provides top-notch legal advice and relevant legal suggestions along with the relevant laws and regulations concerning our Client’s Arbitral Award Enforcement.

Legal Representation in the High Court

If the filing of an application for Enforcement is rejected by the opposing Parties, a team of seasoned advocates and professional lawyers is indispensable. 

For conditions as such, Imperial Law Associates acts as the Official Legal Representative of its clients seeking the Enforcement of Award.

Enforcement of Court Decision

After the High Court provides a formal decision on the Award, it is essential to properly enforce it while preserving our client’s interests. Our Law Firm appropriately enforces the Court Decision successfully and guarantees the reliefs and appropriate remedies as prescribed by the Award.

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