When foreign award binding
Section 46 of the Arbitration and Conciliation Act, 1996 deals with when foreign award binding. Any foreign award which would be enforceable under this Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any referenc The Act came into force on 22 Aug 1996.
Any foreign award which would be enforceable under this Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award.
Section 46, The Arbitration and Conciliation Act, 1996 (Act 26 of 1996).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Arun Dev Upadhyaya vs Integrated Sales Service Ltd. & ANR.
Court's Decision & Legal Precedent
A non-signatory to an arbitration agreement can be bound by a foreign arbitral award if the non-signatory is a 'person' bound by the award through doctrines like alter ego or succession, but not merely by virtue of being a non-signatory. Section 48(1)(a) applies only to parties to the agreement and cannot be expansively interpreted to include non-signatories. The grounds for refusing enforcement of foreign awards under Section 48 must be narrowly construed in consonance with the pro-enforcement bias of the New York Convention. The burden of proof under Section 48 means establishing the ground on the basis of the record of the arbitral tribunal, not requiring fresh oral evidence. An arbitrator's application of foreign law (here, Delaware law on alter ego doctrine) to bind non-signatories is reviewable by the enforcement court only to the extent of verifying whether the foreign law was properly applied, not on the merits of the award.
On this section: When foreign award binding - award is binding on persons as between whom it was made, not limited to signatories to the agreement
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 46
What have the courts held on Section 46 of the Arbitration and Conciliation Act?
Arun Dev Upadhyaya vs Integrated Sales Service Ltd. & ANR. (10 Aug 2021) is the leading judgment on this section among those set out below: When foreign award binding - award is binding on persons as between whom it was made, not limited to signatories to the agreement.
How do I find court cases under Section 46 of the Arbitration and Conciliation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Arbitration Act 46, section 46 Arbitration Act, section 46 of the Arbitration and Conciliation Act. People searching for it also type arbitration act s 46. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Arun Dev Upadhyaya vs Integrated Sales Service Ltd. & ANR. (10 Aug 2021).
When did Section 46 of the Arbitration and Conciliation Act come into force?
Section 46 of the Arbitration and Conciliation Act, cited as Arbitration Act 46, came into force on 22 Aug 1996, having been enacted on 16 Aug 1996. It is in force as at the date shown on this page.
Other sections of this Act
- 8. Power to refer parties to arbitration where there is an arbitration agreement1029 words
- 11. Appointment of arbitrators1027 words
- 34. Application for setting aside arbitral awards861 words
- 2. Definitions732 words
- 29A. Time limit for arbitral award635 words
- 57. Conditions for enforcement of foreign awards519 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.