Malaysia arbitration notification from India

Vol 4, PW 16 (13 Sep 00) People & Policy
     

Petronas of Malaysia can rest assured that if ever it should seek arbitration in a dispute with an Indian partner the government here is now legally obliged to respect the ruling of a Malaysian court.

On 8th September India's official information agency (Press Information Bureau) said Delhi has issued a notification applying the 'Convention on the Recognition and Enforcement of Foreign Arbitral Awards' (New York Convention) to Malaysia for any award under 'Section 44' of the 'Arbitration and Conciliation Act, 1996'. The notification relates to court rulings made on and after May 18th, 2000 this year.

India enjoys a similar arrangement with Singapore. The mutual recognition of arbitration awards with Malaysia will benefit persons from both countries," reads the statement, "It will facilitate the legal settlement of disputes and quicker enforcement of such awards." Prior to the enactment of the 'Arbitration and Conciliation Act, 1996', the mutual recognition of arbitration awards between Malaysia and India was governed by the 'Foreign Awards (Recognition and Enforcement) Act, 1961'.

This Act has been repealed by 'Section 85(1)' of the 'Arbitration and Conciliation Act, 1996', which came into force on 22nd August 1996. The statement cautions that exisiting rulings made under the 'Foreign Awards (Recognition and Enforcement) Act, 1961' will remain in force unless they are - in the words of the statement - "repugnant" to the 'Arbitration and Conciliation Act, 1996'.