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

A Geneva Convention award was made in favour of Sundaram Exports against Rhine Traders. The award has been annulled by the courts of the country where it was made. Sundaram applies to an Indian Court for enforcement. What follows?

The Court must refuse enforcement. Under the Geneva Convention chapter, enforcement shall be refused where the award has been annulled in the country in which it was made, and this is mandatory, not discretionary, even if the other enforcement conditions are satisfied.

  1. AThe Court has discretion to enforce it if it finds the award fair
  2. BThe Court must refuse enforcement, since annulment in the country of origin compels refusalCorrect
  3. CThe Court may enforce it if Sundaram furnishes security
  4. DThe Court must adjourn the matter until Rhine Traders appeals the annulment

Explanation

Under section 57(2)(a), even where the section 57(1) conditions are met, enforcement shall be refused if the award has been annulled in the country in which it was made. The word 'shall' leaves no discretion, and security does not cure annulment.

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