Very often, when discussing the merits of arbitration as an effective way of solving commercial disputes, quick recognition and enforcement of arbitration awards in foreign countries is considered as a main advantage.
Is that statement axiomatic, or there are “underwater rocks” that the arbitration practitioners may face? This manuscript will analyze one of the issues that parties of international arbitration may face during recognition and enforcement of foreign arbitral award.
Of course, mentioned statement is not baseless.The New York convention on “Recognition and enforcement of the foreign arbitral awards” (1958) (New York Convention)adopted by 166 jurisdictions indeed provide limited grounds of “resistance” for the party against whom it is invoked. These limited grounds imply that no substantial review of foreign arbitration award is possible by the courts of the country where the recognition and enforcement is requested.