Enforceability of Investment Treaty Arbitration Awards in India

The latest issue of the Asian Journal of Comparative Law (Vol. 6, Issue 1, 2011) contains an article critically reviewing the enforceability of investment treaty arbitration awards in India. The paper is titled "The Enigma of Enforceability of Investment Treaty Arbitration Awards in India" and is co-authored by Mr. Prabhash Ranjan, Assistant Professor at National University of Juridical Sciences, Kolkata (currently on leave to read for PhD at King's College, London) and Mr. Deepak Raju, my co-blogger on lexarbitri.

This paper first discusses relevant provisions of arbitration law in India and its interpretations by the Indian judiciary to understand the ramifications of Indian law for the enforcement of investment treaty arbitration awards against India. Further, the paper discusses proposed amendments to Indian arbitration law and its effect on investment treaty arbitration.

This issue of enforcement of investment treaty arbitration awards is of importance today due to India's large international investment treaty programme wherein each treaty provides for investor-state treaty arbitration to settle disputes between India and individual investors. There is also a growing observation that enforcement of foreign commercial awards has become increasingly difficult in India especially after the case of Venture Global v. Satyam Computers. For this reason, too, India is seeking to modify its arbitration law, so as to alter this perception. The above paper puts forth the proposition that in spite of proposed amendments, enforcement of investment treaty arbitration awards may nevertheless face several hurdles.

In conclusion, the paper suggests that India must address the issue of enforceability of investment treaty arbitration awards give its large investment treaty arbitration programme aimed at attracting foreign investment.