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CS Professional · Arbitration, Mediation and Conciliation · International Law of Arbitration

A foreign award made in Dubai is sought to be enforced in India by Orion Metals. The respondent has applied to the competent authority in the country where the award was made to set it aside, and that application is pending. Under Section 48(3), what may the Indian Court do?

The Court may adjourn its decision if it considers that proper and, on Orion's application, order the respondent to furnish suitable security. Section 48(3) gives this discretion where a setting-aside or suspension application is pending before the competent authority of the country of the award.

  1. AMust reject enforcement permanently
  2. BMust proceed to enforce at once, ignoring the pending application
  3. CAdjourn the decision if it considers it proper and, on Orion's application, order the respondent to give suitable securityCorrect
  4. DTransfer the matter to the Dubai court for decision

Explanation

Section 48(3) gives the Court discretion: if it considers it proper, it may adjourn the decision on enforcement, and on the application of the party claiming enforcement it may order the other party to give suitable security. Refusal is not automatic and enforcement is not compelled.

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