Abstract

The New York Convention on Recognition and Enforcement of Foreign Award 1958 (NYC 1958 or the Convention) became the principal vehicle for the resolution of international commercial disputes through arbitration. The signatories to the convention committed to incorporating its provisions into their domestic legislation to streamline the recognition and enforcement of foreign arbitral awards within their jurisdictions. The Convention has XVI Articles. Article I of the Convention has two provisos. First proviso mandates enforcement of foreign award by countries signatories to the Convention. Second proviso says that awards not considered as domestic will also be enforced by the member countries to the Convention. Thus, in the context of the New York Convention, a "non-domestic award" denotes an arbitral decision issued in a nation distinct from the one where the proceedings for recognition and enforcement are being conducted. In other words, enforcement of an award, incorporating some foreign elements, is neither domestic nor purely foreign award. This category will be covered under non-domestic award. The text of the Convention thus incorporates both internationality and nationality principles. This was due to difference of opinion between the member nations. This paper explores the journey of the signing of the Convention and also deliberates the theme of what constitutes a non-domestic award under the Convention.

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