The Allahabad High Court dismisses appeal, clarifying its authority over domestic awards in international commercial arbitrations.
In a significant ruling, the Allahabad High Court has reaffirmed its jurisdiction over the enforcement of domestic arbitration awards in international commercial arbitrations, rejecting the notion that such cases should be handled by District Commercial Courts. The bench, comprising Justices Rajan Roy and Rajeev Bharti, delivered the judgment on December 16, 2025, in the case of Shri Colonizers and Developers Pvt. Ltd. v. Abha Gupta. The court dismissed the special appeal challenging an earlier decision by a single judge regarding the execution of an arbitration award.
The dispute arose from the execution of a domestic award in an international commercial arbitration where the seat of arbitration was in India. The appellants contended that the execution should be carried out by District Commercial Courts, citing Section 36 of the Arbitration and Conciliation Act, 1996, which prescribes the manner of enforcement akin to a decree of a court.
However, the High Court upheld the position that the definition of 'Court' under Section 2(1)(e)(ii) of the Arbitration and Conciliation Act, 1996, clearly designates the High Court as the competent authority for enforcing such awards. This provision stipulates that in international commercial arbitration, the High Court having jurisdiction to hear appeals from subordinate courts is the appropriate forum. The court also referenced Section 10(1) of the Commercial Courts Act, 2015, which supports this jurisdictional framework.
The judgment clarified that while foreign awards are separately addressed under Part II of the Arbitration and Conciliation Act, 1996, with specific provisions for their enforcement, domestic awards in international commercial arbitrations fall under Part I, necessitating High Court intervention.
The court emphasized the legislative intent and the coherence between the Arbitration and Conciliation Act, 1996, and the Commercial Courts Act, 2015, in maintaining the High Court's role in such matters. The decision further dismissed any applicability of the 2016 amendment to Section 47 of the Arbitration and Conciliation Act, which concerns foreign awards, to the context of domestic awards.
This ruling is poised to influence future cases involving the enforcement of arbitration awards in international commercial contexts, reinforcing the High Court's pivotal role in upholding the arbitration framework in India.
Bottom Line:
Arbitration and Conciliation Act, 1996 - Execution of domestic award in an international commercial arbitration - High Court is the competent forum for enforcement under Section 36 of the Arbitration and Conciliation Act, 1996, read with Section 2(1)(e)(ii).
Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 2(1)(e)(ii), 36; Commercial Courts Act, 2015 Section 10(1).
