Foreign consent award enforcement survives public policy objections where known settlement terms and FEMA concerns were already addressed.

A foreign consent award was described as enforceable in India despite objections based on alleged non-disclosure of an earlier insolvency settlement, alleged double recovery, and alleged FEMA non-compliance. The record showed that the earlier settlement was within the parties' knowledge, the consent award recorded an understanding against double recovery, and the decree holder filed an affidavit confirming no overlap between settlements. RBI post-facto approval and compounding treatment also removed the FEMA-based objection. In proceedings under Section 48 of the Arbitration and Conciliation Act, 1996, public policy could not be used to reopen settled matters known to the resisting party.

---

---

Issues: Whether the foreign consent award was enforceable in India despite objections based on alleged non-disclosure of the earlier insolvency settlement, alleged double recovery, and alleged non-compliance with FEMA.

Analysis: The award arose out of a settlement agreement under which the judgment debtor acknowledged the payment obligation and agreed not to resist enforcement. The record showed that the earlier settlement with the insolvency administrator had been within the parties' knowledge, that the consent award itself recorded the understanding that there would be no double dip, and that the decree holder had filed an affidavit confirming no overlap between the two settlements. The RBI had also granted post-facto approval for remittance and treated the transaction as a contravention subject to compounding, removing the FEMA-based objection. In proceedings under Section 48 of the Arbitration and Conciliation Act, 1996, the public policy objection could not be used to reopen matters already within the parties' knowledge or to allow a dishonest resistance to enforcement.

Conclusion: The foreign award was held enforceable and the objections under Section 48(2)(b) were rejected.

Ratio Decidendi: A foreign award will not be refused enforcement on public policy grounds where the resisting party, having knowingly entered into a settlement and consent award, seeks to reopen settled matters already within its knowledge and where the statutory objections under Section 48 are not made out.

---