Sections 53 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter II of Part II covers a second family of foreign awards, those under the Geneva Protocol and Convention printed in the Second and Third Schedules. Section 53 defines a "foreign award" for that Chapter by a three-part test and a date, the 28th day of July, 1924, and says an award is not final while proceedings to contest its validity are pending in the country where it was made. Section 54 tells a judicial authority to refer the parties to arbitration. This article reads both as per the India Code consolidated text consulted.
In Chapter II, a "foreign award" is an award on differences relating to matters considered as commercial under the law in force in India, made after the 28th day of July, 1924, (a) under an agreement to which the Protocol in the Second Schedule applies, (b) between persons of whom one is subject to the jurisdiction of one notified Power and the other to another, and (c) in a notified territory. An award is not deemed final while proceedings to contest its validity are pending in the country where it was made. Under section 54, a judicial authority shall refer the parties to arbitration on the application of either of them. Section 52 means Chapter II does not apply to awards to which Chapter I applies.
Where these sections sit
The text consulted prints "Chapter II: Geneva Convention Awards" after section 52. Chapter I (sections 44 to 52) covers New York Convention awards; see our article on section 44. Section 52 says Chapter II does not apply in relation to foreign awards to which Chapter I applies; see sections 49 to 52. If you want to know which Chapter governs an award you hold, our arbitration support team can go through the tests with you. The Second and Third Schedules print the Protocol and the Convention; see our article on the Second and Third Schedules.
Section 53: interpretation
The heading is "Interpretation". The section opens: "In this Chapter 'foreign award' means an arbitral award on differences relating to matters considered as commercial under the law in force in India made after the 28th day of July, 1924,—"
The three tests
| Clause | Test as printed |
|---|---|
| (a) | "in pursuance of an agreement for arbitration to which the Protocol set forth in the Second Schedule applies" |
| (b) | "between persons of whom one is subject to the jurisdiction of some one of such Powers as the Central Government, being satisfied that reciprocal provisions have been made, may, by notification in the Official Gazette, declare to be parties to the Convention set forth in the Third Schedule, and of whom the other is subject to the jurisdiction of some other of the Powers aforesaid" |
| (c) | "in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made, may, by like notification, declare to be territories to which the said Convention applies" |
The clauses are joined by "and" at the end of (a) and (b). On the words, all three are to be met. Clause (b) turns on the persons: one is subject to the jurisdiction of a notified Power and the other to another notified Power. Clause (c) turns on the place where the award was made. No notification is in the source, so this article names no Power and no territory.
The date and the commercial test
The date is "after the 28th day of July, 1924". Chapter I speaks of an award made "on or after the 11th day of October, 1960". The words are different, "after" here and "on or after" there, and both dates are as printed. Both Chapters use "considered as commercial under the law in force in India". Chapter II's wording is "differences relating to matters considered as commercial", where Chapter I's is "differences between persons arising out of legal relationships, whether contractual or not, considered as commercial".
Finality
The closing words read: "and for the purposes of this Chapter an award shall not be deemed to be final if any proceedings for the purpose of contesting the validity of the award are pending in the country in which it was made." Finality matters again in section 56(1)(b) (evidence that the award has become final) and section 57(1)(d) (award final in the country where it was made). See our articles on sections 55 and 56 and section 57.
Section 54: power of judicial authority to refer parties to arbitration
"Notwithstanding anything contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, on being seized of a dispute regarding a contract made between persons to whom section 53 applies and including an arbitration agreement, whether referring to present or future differences, which is valid under that section and capable of being carried into effect, shall refer the parties on the application of either of them or any person claiming through or under him to the decision of the arbitrators and such reference shall not prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed or becomes inoperative."
Reading the words:
- Override. The section applies "notwithstanding anything contained in Part I or in the Code of Civil Procedure, 1908".
- Trigger. A judicial authority seized of a dispute regarding a contract made between persons to whom section 53 applies, which includes an arbitration agreement (present or future differences) "which is valid under that section and capable of being carried into effect".
- Duty. The authority "shall refer the parties" on the application of either of them or a person claiming through or under him.
- Reservation. The reference "shall not prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed or becomes inoperative".
There is no 2019 footnote on this section. The footnote at the foot of the page that contains the start of section 54 belongs to section 50. The section states no deadline for the application, and no document to accompany it.
Section 54 beside section 45
| Point | Section 45 (Chapter I) | Section 54 (Chapter II) |
|---|---|---|
| Who applies | One of the parties or any person claiming through or under him | Either of them or any person claiming through or under him |
| Exception | Unless it prima facie finds the agreement null and void, inoperative or incapable of being performed | Agreement must be valid under section 53 and capable of being carried into effect |
| Reservation about the authority | Not stated | Reference does not prejudice the authority's competence if the agreement or arbitration cannot proceed or becomes inoperative |
| Footnote | Act 33 of 2019, s. 11 (w.e.f. 30-8-2019) | None |
See our article on section 45. They are two provisions for two Chapters, and this article does not say how they relate beyond the printed words.
Appeal
The appeal provision for Chapter II is section 59, which allows an appeal from an order refusing to refer the parties to arbitration under section 54 or to enforce a foreign award under section 57. See sections 58, 59 and 60.
An example
A contract between two parties is governed by a written arbitration agreement. One party is subject to the jurisdiction of a Power that the Central Government has declared by notification to be a party to the Third Schedule Convention, and the other party to another such Power. Whether the Chapter II route applies depends on the notification, which is not in the source. If it does, and one party files a suit in India, the other may apply under section 54, and the judicial authority shall refer the parties to arbitration if the agreement is valid under section 53 and capable of being carried into effect. If the agreement or the arbitration cannot proceed or becomes inoperative, the reference does not prejudice the authority's competence.
Need help deciding which Chapter applies?
An award may need to be tested against both Chapters, and section 52 settles the order. Our arbitration support service can read the award, the agreement and the relevant notifications with you.
Key takeaways
- Section 53 defines "foreign award" for Chapter II: commercial matters, made after the 28th day of July, 1924, under an agreement to which the Protocol in the Second Schedule applies, between persons subject to the jurisdiction of notified Powers, in a notified territory.
- An award is not deemed final while proceedings to contest its validity are pending in the country where it was made.
- Section 54 requires a judicial authority to refer the parties to arbitration on the application of either of them, where the agreement is valid under section 53 and capable of being carried into effect.
- Section 52 means Chapter II does not apply to awards to which Chapter I applies.
- No notification of Powers or territories is in the source.
Read next
- Sections 55 and 56: when a Geneva Convention award is binding and the evidence
- Section 57: conditions for enforcement of Geneva Convention awards
- Second and Third Schedules: Geneva Protocol and Convention
- International commercial arbitration: Part II
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.