LUDWING WUNSCHE AND CO Vs. RAUNAQ INTERNATIONAL LIMITED

JUDGEMENT

(1.) THIS application is a sequel to an order made on February 23, 1981 by the Registrar of this Court in Suit No. 113-A/81, and raises a question as to the procedure to be followed in proceedings for the enforcement of a foreign award under the provisions of the Arbitration (Protocol & Convention) Act, 1937 and of the Foreign Awards (Recognition and enforcement) Act, 1961, for short, the Acts of 1937 and 1961 respectively.

(2.) LUDWIG Wunsche and Company, a foreign company, applied under the Act of 1961 and/or the Act of 1937 to enforce a foreign award said to have been made on September 5, !979 by three arbitrators, nominated by the Grain & Food Trade Association Ltd. pursuant to an arbitration clause said to have been incorporated in a contract, allegedly entered into between the company and Raunaq International Ltd, an Indian company, defendant no. 1. By its application) the foreign company prayed that "this Hon'ble Court may be pleased to direct that the said Award dated the 5th September, 1979 be filed in this Hon'ble Court, a decree be made in terms thereof". The original Award and a duly authenticated copy of it, were enclosed with the application as Annexures 'S' and 'Q.' respectively. On February 23, 1931, the Registrar of this Court directed that the application be registered as a suit and notice of it be issued to the opposite party for April 16, 1981. The order proceeded further thus:

(3.) IN the case of Societe De Traction et D'Electricite Societe Anonyms v. Kamani Engineering Co. Ltd, AIR 1964, S.G.553. Shah, J. speaking for the Court observed that by the use of words "Save in so far as otherwise provided by any law for the time being in force" in Section 47 of the Act of 1940, the legislature had clearly made the provision of the Act of 1937 appli- cable to consensual arbitration under the Act of 1940 when the conditions prescribed for the application of that Act were attracted even if the scheme of arbitration recognised there by is inconsistent with Sections 3 to 38 of the Act of 1940. It was further pointed out that Act of 1937 was enacted for giving effect to protocol on arbitration clauses set forth in the first Schedule and of the conventions on the execution of foreign arbitral awards set forth in the Second Schedule and for enabling the conventions to become operative in INdia.