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Delay to execute foreign award must awaken legislature to plug loopholes in Arbitration Act: Kerala High Court

In 2013, the respondent in the present case filed a petition against the petitioner to execute an ex-parte foreign arbitration award passed by the Combined Edible Nut Trade Association, London in 2012 to realise an amount of $2,88,125.20.

The petitioner challenged the award before a District Court contending that the execution petition was verified and filed by an imposter, that the entire contract formation iwasvitiated by fraud, that the petitioner did not receive notice in the arbitral proceedings, that the award was unenforceable in India and has not become final, etc.

The respondent questioned the maintainability of the original petition.

This began several rounds of litigation filled with original petitions, interim applications, and appeals before the District Court, High Court and even the Supreme Court.

After over 5 years, the High Court confirmed the award was enforceable. The respondent then filed another application to arrest and detain the petitioner in civil prison.

The petitioner filed his objection to the notice issued, pleading that he has no means to pay the award debt and is seriously ill due to renal issues.

The respondent filed his reply affidavit and the District Court held that the petitioner does have the means to pay the award amount.

This order was challenged by the petitioner in the present case.

Source: Barandbench

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