Asked by a business owner in Bengaluru

We won the arbitration but they will not pay. How do we enforce the award?

Answered by Advocate Sharan Jain··Arbitration & Dispute Resolution

Short answer

Once the three month challenge window under Section 34 has passed, or a challenge has been dismissed, the award is enforced under Section 36 as if it were a decree of the court. You file an execution petition and use the ordinary attachment powers under Order 21 CPC.

This is the part of arbitration that decides whether the whole exercise was worth anything, and it is governed by a provision that changed significantly in 2015.

When the award becomes enforceable

Under Section 36 of the Arbitration and Conciliation Act, 1996, where the time for making an application to set aside the award under Section 34 has expired, the award is enforced in accordance with the Civil Procedure Code, in the same manner as if it were a decree of the court. So you do not need a separate suit and you do not need the court to convert it into a decree.

A challenge no longer automatically stays it

Before the 2015 amendment, merely filing a Section 34 application operated as an automatic stay, and that was routinely abused to delay payment for years. Now, filing a challenge does not by itself stay enforcement. The award debtor must apply separately for a stay, and the court may impose conditions, commonly requiring a deposit or security for the awarded sum. For a money award the court is directed to have due regard to the provisions on stay of a money decree.

The practical consequence
An award holder is in a much stronger position than a decree holder waiting out an appeal. Start execution as soon as the three month period expires, and if a Section 34 application is filed, resist the stay application and press for security as a condition. That single step is usually what converts an award into money.

The execution itself

File an execution petition before the court that would have jurisdiction over the subject matter, or where the assets are located. The full range of Order 21 CPC powers is available: attachment and sale of property, garnishee orders against bank accounts, attachment of salary and receivables, appointment of a receiver, and in appropriate cases arrest and detention.

As with any execution, success depends on identifying assets. Use Order 21 Rule 41 to have the award debtor examined on oath about their assets where you do not know what to attach.

Foreign awards

An award made in a country notified as a reciprocating territory under the New York Convention is enforced under Part II, Sections 44 to 49. The party seeking enforcement produces the original award and the arbitration agreement. Enforcement can be refused only on the narrow grounds in Section 48, which broadly mirror the Convention. Once the court is satisfied the award is enforceable, it is deemed to be a decree of that court. Note that there is no separate proceeding to "set aside" a foreign award in India; the challenge is made at the seat, and here it is resisted at the enforcement stage.

Nothing there yet? Send the question in and it gets answered here.

Related legal service

Dealing with this yourself rather than reading about it? Our Bangalore advocates work in this area.

SJ

Answered by

Advocate Sharan Jain

Advocate based in Bangalore, practising before the Karnataka High Court and District, Sessions, Consumer and Family courts. Answers public legal questions to make Indian law more accessible.

This answer is general information on Indian law as at July 26, 2026, published for public education. It is not legal advice, it does not take account of your facts, and reading it does not create an advocate-client relationship. Law changes and every case turns on its own circumstances. Please consult a qualified advocate about your own matter.

People also asked

Arbitration & ADR

The arbitrator has gone against us. Can we appeal the award?

There is no appeal on the merits. You can only apply under Section 34 to set the award aside on narrow grounds, within three months of receiving it, extendable by only 30 days for sufficient cause. Being wrong on the facts or the evidence is not a ground.

Arbitration & ADR

I need an urgent order to stop assets being disposed of. Can I get one before the arbitration begins?

Yes. Section 9 lets you approach the court for interim measures before or during arbitration, and even after an award until it is enforced. Once the tribunal is constituted, Section 17 gives it the same powers and the court will usually leave it to the tribunal.

Arbitration & ADR

Our contract has an arbitration clause. Is it actually valid, and what does it mean for us?

It is valid if it is in writing and shows a clear intention to refer disputes to arbitration for a binding decision. If it is, a court must refer the parties to arbitration under Section 8 when one of them asks, so the clause effectively removes the dispute from the ordinary courts.

Courts & Procedure

I won the case but the other side is not complying. What now?

File an execution petition under Order 21 of the Civil Procedure Code. The court can attach and sell property, attach bank accounts and salary, appoint a receiver and in some cases order civil detention. For breach of an undertaking or an injunction, contempt proceedings are also available.

Family & Divorce

I got divorced abroad. Is that decree valid in India?

Not automatically. Under Section 13 of the Civil Procedure Code a foreign judgment is conclusive only if it passes certain tests, and Y. Narasimha Rao v. Y. Venkata Lakshmi holds that a decree on a ground not available under the law the parties married under, or passed without the other spouse being properly heard, is not recognised.

Arbitration & ADR

The other side is refusing to appoint an arbitrator. How do I get the arbitration started?

Send a written notice invoking arbitration under Section 21 and calling on the other side to concur in an appointment. If they do not act within 30 days, apply to the High Court under Section 11 and the court will appoint the arbitrator.

S Jain & Attorneys · Ask Me

Still not the question you had in mind?

Search the column, or send your question in. Questions of general interest are answered here, anonymously, so the next person does not have to ask.