Foreign arbitration award enforceable in India according to the Arbitration and Conciliation Act

The Delhi high court has held that the foreign arbitration award in the dispute between US firm Penn Racquet Sports and Indian company Mayor International Ltd was enforceable in this country according to the Arbitration and Conciliation Act. The award made by International Chamber of Commerce in Paris was, therefore, made decree of the high court, dismissing the objection of the Indian firm which objected to the award. The companies entered into a Trade Mark Licence Agreement (TLA), under which the US firm had granted the Indian firm licence to use the trademark “Penn” for use in certain territories for certain products like golf balls, accessories and inflatable balls. The Indian firm agreed to pay annual royalty. Disputes arose over breach of conditions, which were referred to arbitration. The award went in favour of the US firm. The Indian company objected to its enforcement arguing, among other things, that it was against public policy of India. The high court rejected its objections.