Recognition and enforcement of foreign Arbitral Awards are governed by the Arbitration Act [1] and the Arbitration Rules. [2] A foreign Arbitral Award has been defined under the Act to mean an award where the juridical seat of an arbitration is in a territory or state other than Tanzania.
The High Court of Tanzania is the only forum for the recognition and enforcement of foreign arbitral awards [3].
The recognition and enforcement process of foreign arbitral awards in Tanzania
Section 78(1) of the Arbitration Act [4] requires one to make an application in writing to the court in order for a foreign arbitral award to be recognized as binding and enforceable.
For a foreign arbitral award to be recognized by the court, such an award has to meet the following conditions[5]
- has been made in pursuance of an agreement for arbitration which was valid under the law by which it was governed;
- has been made by the arbitral tribunal provided for in the agreement or constituted in the manner agreed upon by the parties;
- has been made in conformity with the law governing the arbitration procedure;
- has become final in the country in which it was made; and
- has been in respect of a matter which may lawfully be referred to arbitration under the laws of Tanzania, and its enforcement must not be contrary to the public policy or the law of Tanzania.
In seeking to enforce a foreign award, the party seeking to enforce must produce the following:
- the original award or its copy duly authenticated in the manner required by the law of the country in which it was made;
- evidence proving that the award has become final;
- such evidence as may be necessary to prove that the award is a foreign award and that the conditions mentioned in sub regulations (4) herein are satisfied; and
- an English translation certified as correct by a diplomatic or consular agent of the country to which that party belongs, or certified as correct in such other manner as may be sufficient according to the laws of Tanzania if the award is in a foreign language.
A foreign Arbitral Award shall be refused by the Court if:
- at the request of the party against whom it is invoked, that party furnishes the court with proof that-
- parties to the arbitration agreement, pursuant to the law applicable (a) lacked the capacity to enter into the agreement; or (b) were not properly represented;
- the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication of that law, under the law of the state where the arbitral award was made;
- the party against whom the arbitral award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case;
- the arbitral award deals with a dispute not contemplated by or not falling within the terms of the reference to arbitration, or it contains decisions on matters beyond the scope of the reference to arbitration, provided that if the decisions on matters referred to arbitration can be separated from those not so referred, that part of the arbitral award which contains decisions on matters referred to arbitration may be recognized and enforced;
- the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or, failing any agreement by the parties, was not in accordance with the law of the state where the arbitration took place; or
- the arbitral award has not yet become binding on the parties or has been set aside or suspended by a court of the state in which, or under the law of which, that arbitral award was made;
- the making of the arbitral award was induced or affected by fraud, bribery, corruption, or undue influence; or
- if the court finds that-
- the subject matter of the dispute is not capable of settlement by arbitration under any written laws; or
- the recognition or enforcement of the arbitral award would be contrary to any written laws or norms.
The Execution of Foreign arbitral awards in Tanzania
Where the Court is satisfied that the award is enforceable, the award shall be deemed to be a decree of that Court and executable as a High Court Decree.
[1] [Act No. 2 revised Edition 2020]
[2] GN No. 146/2021 The Arbitration (Rules of Procedure) Regulations 2021
[3] https://www.iarbafrica.com/en/news-list/17-news/1145-enforcing-foreign-arbitral-awards-in-tanzanian-courts
[4] Ibid
[5] Rule 66 (3)