Once the three-month period for a Section 34 challenge (extendable by 30 days) has passed, or a challenge has been refused, an arbitral award is enforced under Section 36 in the same manner as a decree of the court under the Code of Civil Procedure, by filing an execution petition in the court where the judgment debtor has assets. A pending Section 34 application does not by itself stay enforcement; the court may grant a stay on conditions, usually a deposit. For MSEFC awards, the buyer must deposit 75% before even filing the challenge.
How enforcement works in India
- Award delivered; the three-month challenge window starts from receipt of the signed award.
- If no challenge is filed (or the deposit for an MSEFC award is not made), the award becomes enforceable.
- File an execution petition under Order XXI CPC with a certified copy of the award, in the court where the buyer's bank accounts, receivables or property are located.
- Seek attachment of bank accounts (garnishee), receivables, movable or immovable property; the court can also summon the judgment debtor to disclose assets.
- Sale of attached property, or payment by the buyer to lift the attachment.
Why it matters for getting paid
An award is not self-executing; a buyer determined to delay will wait to be compelled. The post-2015 rule that a challenge does not stay enforcement, and the deposit conditions courts impose, mean the money is usually secured within months of the award. For MSME suppliers, the 75% deposit makes a Council award close to cash. Read decree and execution, garnishee order and attachment of property.
How FundRaksha uses it
FundRaksha's advocates do not stop at the award: they prepare the execution petition with the buyer's bank details and asset information gathered during the case, and move for garnishee orders on the first date. This is how the awards become part of the 700+ businesses actually paid. Fee: 30% of the amount recovered.
Worked example (hypothetical)
The Karnataka Facilitation Council awards a Bengaluru component maker ₹12,00,000 principal plus ₹2,56,000 Section 16 interest on 1 March. The buyer wants to challenge but must first deposit 75% of ₹14,56,000, that is ₹10,92,000. It does not. The challenge window closes on 1 June (plus a possible 30 days). On 10 July the maker files an execution petition in the Delhi court where the buyer banks, with a garnishee application against the buyer's current account. The court attaches ₹14,56,000 plus post-award interest; the buyer pays the full amount within three weeks to release its account.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.