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• 2024-09-17 05:58:03
• Admin

Foreign Arbitral Award Enforcement involves legal proceedings to recognize and enforce a decision or award made by a competent tribunal across different countries. This process ensures that the terms of the arbitration award are effectively enforced and that the remedies or damages granted are obtained. Legal Concern, renowned for handling international clients and foreign jurisdictions, excels in enforcing arbitral awards from Nepal to international countries and vice versa.

Laws Governing Award Enforcement

The UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards, commonly known as the New York Convention, adopted in 1958, governs the enforcement of arbitral awards in international disputes. This convention stipulates that parties seeking enforcement of an arbitration award must apply to a competent court, which follows the procedures outlined in the convention.

Foreign arbitral awards are binding and enforceable, similar to court decisions, and are a preferred mechanism for resolving international commercial disputes. Member states of this convention must provide a reliable mechanism for enforcing such awards. In Nepal, the Arbitration Act 1999 incorporates the procedures and provisions for arbitration and its enforcement.

Enforcement of Foreign Arbitral Awards

To enforce a foreign arbitral award in Nepal, the following conditions must be met:

• The appointment of the arbitrator must adhere to the agreement that the parties consented to.
• Both parties must have been duly notified of the arbitration proceedings.
• The award or decision must pertain to the subject matter of the arbitration agreement.
• The award must be final and binding.
• The application for enforcement must be filed within 90 days from the date of the arbitral award.

No Enforcement of Foreign Arbitral Award in Nepal if:

• The implementation of the award jeopardizes public security or utility or adversely affects public policy.
• The settled dispute is legally impermissible to be resolved through arbitration under Nepalese law.

Process of Foreign Arbitral Award Enforcement

1. Determine the Validity of the Arbitration Agreement between the parties.
2. Meet the Criteria of Enforcement set by the New York Convention.
3. File an Application with the High Court of Nepal, including a relevant application, an original copy of the arbitral award, and the arbitration agreement.
4. Provide Notice of Proceedings and allow the opposing party to challenge the enforcement.
5. Obtain an Enforcement Order from the High Court and successfully enforce the award by seeking remedies as specified.

For detailed proceedings on arbitration in Nepal, refer to this publication by our arbitration lawyers: Arbitration Law in Nepal.

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Filing of Application for Award Enforcement

The New York Convention requires that the initial step for enforcing an arbitral award is to file an application at the competent court (High Court in Nepal) within 90 days of the award. Legal Concern has extensive experience in filing applications for award enforcement in the High Courts of Nepal, including the submission of all necessary documents.

Due Diligence of the Arbitration Agreement

The Arbitration Act mandates that the validity of the arbitration agreement is crucial for the enforcement process. Our team conducts thorough due diligence, including detailed reviews and compliance checks, to ensure the arbitration agreement's validity before initiating enforcement proceedings.

Exclusive Legal Advice

Our corporate law firm offers expert legal advice and relevant suggestions on laws and regulations concerning arbitral award enforcement.

Legal Representation in the High Court

If an application for enforcement is contested by opposing parties, a team of experienced advocates and professional lawyers is essential. Legal Concern acts as the official legal representative for clients seeking enforcement of their awards.

Enforcement of Court Decisions

After the High Court issues a decision on the award, proper enforcement is crucial to securing the client's interests. Our firm ensures that the court decision is enforced effectively, obtaining the reliefs and remedies prescribed by the award.