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Issues: Whether an arbitral award, enforceable as a decree under the Arbitration and Conciliation Act, 1996, must first be filed in the court having jurisdiction over the arbitral proceedings and then transferred before execution, or whether it may be filed directly for execution in the court where the judgment-debtor has assets.
Analysis: Section 36 of the Arbitration and Conciliation Act, 1996 creates a legal fiction by which an award is enforced in the same manner as if it were a decree, but the award is not a decree passed by any civil court. The jurisdiction provision in Section 42 of the Arbitration and Conciliation Act, 1996 governs arbitral proceedings and subsequent applications arising out of those proceedings; once a final award is made, the arbitral proceedings stand terminated under Section 32 of the Arbitration and Conciliation Act, 1996. The provisions of the Code of Civil Procedure, 1908 relating to execution of decrees, including Sections 37, 38, 39 and 46 and Order XXI Rules 6 and 11(2), do not require the award-holder to first obtain a transfer from a court said to have jurisdiction over the arbitration. The award may be executed wherever the decree can legally be executed against the judgment-debtor's assets.
Conclusion: The award-holder was not required to first file the execution petition in the court said to have jurisdiction over the arbitral proceedings or obtain transfer of the decree before seeking execution elsewhere.
Final Conclusion: The law was settled in favour of direct execution of arbitral awards in the competent executing court where the judgment-debtor's assets are located, and the contrary view taken by some High Courts was rejected.
Ratio Decidendi: An arbitral award, though enforced as if it were a decree, is not a decree passed by a civil court, and therefore execution may be sought directly in any competent executing court without first obtaining transfer from the court having jurisdiction over the arbitration.
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