A Q&A guide to enforcement of arbitral awards law in South Africa: an overview.
The Q&A gives a structured overview of the key practical issues concerning enforcement of arbitral awards in this jurisdiction, including definitions and preliminary proceedings; applicable conventions; enforcing awards; public policy, enforcement proceedings; formalities; actual enforcement; and any reform proposals.
This Q&A is part of the Enforcement of Judgments and Arbitral Awards in the Commercial Matters Global Guide.
Arbitrations in South Africa are subject to the Arbitration Act 42 of 1965. An award, when used in the general sense, includes the decision of the arbitrator or a tribunal in arbitration proceedings, made by submission or another proper reference. The Act defines “award” to include an interim award.
Section 1 of the Recognition of Foreign Arbitral Awards Act 40 of 1977 defines a “foreign arbitral award” as any arbitral award made outside South Africa, which cannot be enforced under the Arbitration Act but is not in conflict with it.
Are decisions in preliminary/provisional proceedings recognized and enforceable?
Unless the arbitration agreement provides otherwise, a tribunal can make an interim award at any time within the relevant period (section 26, Arbitration Act 42 of 1965).
What is the applicable statutory framework for the enforcement of awards?
Arbitration is governed by the Arbitration Act No 42 of 1965 which provides for the resolution of disputes by arbitration tribunals underwritten arbitration agreements and the enforcement of any awards.
The Recognition and Enforcement of Foreign Arbitral Awards Act No 40 of 1977 provide that foreign arbitral awards can be made an order of a South African court and enforced.
How do you enforce an arbitration award?
The proper method for seeking to enforce an arbitration award under the Federal Act is to file a motion for confirmation in the appropriate court. That court must grant the motion and enter judgment on the confirmation order unless the opposing party files a timely motion to vacate, modify, or correct the award.
What happens if you don’t pay an arbitration award?
Arbitration claimants have access to the same collection tools as in a court judgment: if a respondent fails to pay an arbitration award, the claimant may take the award to court and have it converted to a judgment. The claimant may then attempt to collect on the judgment using the court’s collection procedures.