1. Core Procedure

India - Domestic Banking Award:

1. Award passed -> 3-month limitation to challenge u/s 34. After that, award becomes final.
2. Enforcement u/s 36 filed as Execution Petition under CPC Order 21, like a civil decree.
3. Court can order bank account freeze, attachment, even without separate execution proceedings - Karnataka HC held in IIFL case that bank need not await execution, it can act on arbitral order.

India - Landmark Change 2018: Sundaram Finance Ltd vs Abdul Samad (2018) SC
SC held award can be enforced directly where debtor's assets are - no need to obtain transfer from court that had jurisdiction over arbitration. Ended anomaly of filing in Chennai then transferring to Delhi.

Spain:

1. Foreign award: Exequatur before TSJ of autonomous community (e.g., TSJ Madrid).
2. Grounds limited to Art V New York Convention.
3. Once recognized, enforcement in Juzgado Primera Instancia under Art 545 LEC.
4. For ICSID awards against Spain (renewable energy cases): Automatic enforceability under Art 54 ICSID Convention - no review on merits. Spain has tried to resist on EU state aid / intra-EU objection and failed.

2. Grounds Banks Use to Resist / Borrowers Use

A. Unilateral Appointment of Arbitrator - Now VOID in India

This is the biggest banking law development in 2025-26.

• Bhadra International vs Airport Authority (SC, 5 Jan 2026) - Landmark: arbitration awards passed by arbitrators unilaterally appointed by lenders are void ab initio, can be challenged even at execution stage. Applies retroactively.
• Shikha Ghosh vs Axis Bank (Delhi HC 2024) - 4,155 arbitrations by same arbitrator for Axis Bank in 4-5 years. Court held award dated 26.05.2023 unenforceable, violated neutrality. Axis conceded unilateral appointment = void.
• Cholamandalam Investment vs Amrapali Enterprises (Calcutta HC) - Justice Shekhar Saraf held unilateral award is non-est, enforcement refused u/s 36 even if not set aside u/s 34.
• Squarefeat Case - Bombay HC 2026 - ₹1 Cr loan award thrown out at recovery stage because lender appointed arbitrator.

Rule Now: Under Sec 12(5) read with Perkins Eastman (2019), TRF Ltd (2017), any clause allowing bank to appoint sole arbitrator from its panel = invalid. Must have mutual consent or court appointment u/s 11.

B. Public Policy / Usury in Spain

TSJ Madrid 17 Feb 2021 - SPAIN 104 - Court refused enforcement of Ukrainian award with 15% monthly interest because it violated Spanish law on usury. Even though notice objection failed, usury = public order.

TSJ Madrid 2014-2015 - BBVA Swap Cases - High Court annulled 4 arbitration awards in favor of BBVA where retail customers sold Swaps. Held arbitrators failed to apply mandatory consumer protection rules, violating public order. Madrid courts after 2015 review merits when public order invoked.

Spanish Constitutional Court 15 Feb 2021 - overturned TSJ Madrid annulments, reinstated award in €600M dispute, holding annulment courts cannot review merits, only formal grounds. Re-balanced pro-arbitration.

C. Foreign Award Enforcement Against Spain - Renewable Banking

• InfraRed v Spain (ICSID ARB/14/12) Award 2 Aug 2019 + NextEra Energy v Spain SGHC 43 Singapore + DNZ v DOA SGHC(I)1 - Singapore International Commercial Court rejected Spain's intra-EU objection that Art 26 ECT inapplicable to intra-EU disputes. Held ECT awards enforceable.[2026]
• England Court of Appeal Oct 2022 - Kobre & Kim client vs Spain $109M - Dismissed Spain's state immunity challenge. Held under ICSID Convention contracting states submitted to jurisdiction.
• English HC 10 Nov 2025 - OperaFund v Spain - Held ICSID award cannot be assigned to third-party funder for enforcement - only award creditor can enforce in UK. Important for banking litigation funds buying awards.

3. Special Issues in Banking Disputes

1. Arbitrability: DRT vs Arbitration
Magma Leasing case: Once contract terminated, arbitration can continue. Arbitral award effect in DRT proceedings - DRT cannot re-examine award.

2. Bank Guarantee for Stay
Under Sec 36(2) & (3) - To stay enforcement, borrower must furnish bank guarantee. In Sepco Electric Power Construction Corp v Power Mech (2021 SC), SC upheld validity of foreign bank guarantee for stay of arbitral award enforcement under Arbitration Act.

3. Early Termination in Financing - Spain STS 4203/2025 of 30 Sept 2025
Supreme Court validated events of default agreed in financing agreements. Lender declared early termination on 27 Oct 2009 and filed mortgage enforcement. Borrowers challenged. SC held contractual early termination clauses valid if clear, not abusive.

4. Enforcement Checklist

If you are lender in India after 2026:

1. Do NOT use old loan agreement with "Bank shall appoint sole arbitrator" - award will be void even at execution
2. Use institutional arbitration (SIAC, MCIA) or agree on neutral list
3. File execution directly where assets - attach bank accounts under Order 21 Rule 46 CPC
4. If foreign award (e.g., loan from Singapore bank), file under Sec 47 - 2 stage: enforcement + RBI remittance (Vijay Karia 2020 - court can enforce but RBI controls remittance)

If you are borrower facing award:
Check arbitrator appointment letter - if unilaterally appointed by bank, file objection under Sec 47 CPC at execution stage citing Bhadra International - award is void ab initio, not just voidable.

If you are enforcing against Spanish bank / in Spain:
File exequatur at TSJ - attach Spanish translation, arbitration agreement, award. Expect public order defense if interest > 15% or swap mis-selling. For energy financing PPA, include change-in-law clause to avoid annulment.