Enforcing an arbitral award: can you actually collect what you win?

Introduction

Winning an arbitration is not the same as getting paid.

The arbitration process can be efficient, private and relatively swift.  But an award in your favour is only as valuable as your ability to enforce it. If the losing party refuses to pay, you will need to take further steps. And depending on where their assets are held, those steps can be straightforward or extremely complicated. This article explains how foreign arbitration awards – wherever in the world they are made – can be enforced in England and Wales, what makes that process easier or harder and what businesses can do to protect their position.

What happens after you win?

When a tribunal issues an award in your favour, the award debtor is legally obliged to comply. Many do. Commercial parties with reputations to protect or assets in well-regarded jurisdictions often pay without further action. But an award debtor may dispute the validity of the award, claim inability to pay, deliberately delay or simply refuse. When that happens, the award creditor must seek enforcement through the courts.

It is worth understanding the distinction between recognition and enforcement. Recognition means a court accepts the award as having the same legal effect as a domestic award, allowing it to be relied upon as a defence or set-off. Enforcement goes further: the court gives the award the status as one of its own judgments, opening up the full range of execution tools. In practice, the two are sought together in a single High Court application.

The process in England and Wales is usually governed by the Arbitration Act 1996. Under section 66, any award – regardless of where it was made – can be enforced as a court judgment. For awards from New York Convention countries, sections 100 to 103 provide the primary route, with enforcement refused only on specific, limited grounds.

Why enforce in England and Wales?

Award creditors with counterparties holding assets here – bank accounts, real property, shareholdings in English companies, or receivables from customers based in the UK – should treat England and Wales as a priority enforcement jurisdiction. The English courts place the burden firmly on the award debtor to establish any ground for refusal and their strongly pro-enforcement approach is well recognised internationally. Crucially, the courts operate efficiently: enforcement orders are typically made on the papers without a hearing, and the overall process is designed to be as streamlined as possible.

The New York Convention, ratified by over 170 countries and implemented through the Arbitration Act 1996, means that awards from virtually any major arbitral seat – Singapore, Paris, New York, Dubai, Geneva – can be enforced in England and Wales as if they were domestic judgments. This gives arbitration a significant structural advantage over litigation: there is no equivalent global framework for foreign court judgments, and the UK’s bilateral reciprocal enforcement arrangements with other countries cover far fewer jurisdictions. For parties whose counterparties operate internationally, this distinction matters enormously in practice.

How the procedure works

An application to enforce is made without notice, by filing an arbitration claim form with the High Court. The applicant must produce the original award and arbitration agreement, or certified copies. Foreign-language documents must be accompanied by certified translations. The applicant must also confirm whether the award has been complied with and to what extent. Partial compliance does not prevent an application and enforcement can be sought in respect of any unpaid portion.

The court will ordinarily make an enforcement order on the papers without a hearing. That order is then served on the award debtor, who has a specified period – typically 14 days, though longer where service is effected abroad – to apply to set it aside. Until that period expires, or any set-aside application is resolved, the award cannot be enforced.

If the award debtor does not apply to set the order aside, or does so unsuccessfully, the enforcement order takes full effect as a judgment of the court. The award creditor can then use standard judgment enforcement mechanisms: instructing High Court enforcement officers, applying for charging orders over property, seeking third-party debt orders to intercept payments owed to the debtor, or applying for a writ of control over goods. Where the award is expressed in a foreign currency, the order can mirror that currency, with payment at the sterling equivalent at the time of actual payment.

Entering judgment in terms of the award

Beyond obtaining leave to enforce, award creditors should consider the additional step of asking the court to enter judgment in the precise terms of the award. Under section 66(2) of the Arbitration Act 1996, and section 101(3) for New York Convention awards, the court has this power – and the difference is significant.

Once judgment is entered in terms of the award, the debtor is bound by a judgment of the court, not merely an enforcement order. Failure to comply can, in principle, constitute contempt of court – a considerably more coercive tool where an award debtor is being deliberately obstructive. There is also a financial consequence: interest runs on the judgment sum under the Judgments Act 1838 at 8% per annum from the date of judgment. On a substantial award, particularly one where enforcement has been contested or delayed over a period of months or years, this compounds meaningfully and creates a concrete financial incentive for the debtor to satisfy the judgment promptly rather than prolong the process.

It is also worth noting that entering judgment in terms of the award strengthens the award creditor’s position for any subsequent steps – whether resisting a challenge to the enforcement order or pursuing parallel enforcement in another jurisdiction. Where the facts support it, applying to enter judgment in terms of the award should be a standard part of any enforcement strategy, not an optional extra.

Grounds for challenging enforcement

Even where the New York Convention applies, an award debtor can apply to have enforcement refused. The grounds are deliberately narrow – the Convention was designed to make enforcement the rule, not the exception – but they are regularly argued and worth understanding in advance.

• Invalidity of the arbitration agreement: Under section 103(2)(b), if the arbitration clause was not valid under the applicable law, enforcement may be refused. Validity is assessed under the law chosen by the parties, or failing that, the law of the seat. A poorly drafted or ambiguous clause can create vulnerability that surfaces years later – one more reason careful drafting at the contract stage matters.

• Failure of due process: Under section 103(2)(c), enforcement can be refused if a party was not given proper notice of the arbitration or was otherwise unable to present its case. The courts have interpreted this as requiring the basic requirements of natural justice – a fair opportunity to be heard. Procedural shortcuts taken during the arbitration can prove costly when enforcement is subsequently sought.
• Award beyond the scope of the submission: Under section 103(2)(d), if the tribunal decided matters not referred to it under the arbitration agreement, enforcement of those parts of the award may be refused. Where the excess can be separated from the valid portions, partial enforcement remains available under section 103(4).

• Public policy: Under section 103(3), enforcement can be refused if it would be contrary to public policy. This exception has been successfully invoked in cases touching on sanctions regimes, consumer protection legislation and conduct offending fundamental legal principles.

• The award has been set aside or suspended: Under section 103(2)(f), enforcement may be refused if the award has been set aside or suspended by a court at the seat of the arbitration. A suspension obtained abroad can temporarily block enforcement here, giving award debtors a potential tactical tool to delay proceedings.

Where any of these grounds are raised, the courts may adjourn enforcement pending the outcome of challenge proceedings at the seat, sometimes on condition that the award debtor provides security for the award amount in the interim. This security condition is an important protection for award creditors: it means that even where enforcement is temporarily paused, the debtor cannot simply run out the clock without consequence. Award creditors should be prepared to argue for security whenever an adjournment is sought, and to resist adjournment applications that appear designed primarily to delay rather than to pursue a genuine challenge.

Protecting your position: practical steps

The time to think about enforcement is before a dispute arises, not after an award has been issued.

• Identify and monitor the award debtor’s assets in England and Wales: Whether at the contract stage or during arbitration, consider what assets your counterparty holds within the jurisdiction. Bank accounts, real property, shares in English companies, and receivables from customers in England and Wales are all potentially available to satisfy an award. Early identification allows an enforcement strategy to be planned in advance rather than improvised under pressure once an award is in hand.

• Seek freezing injunctions where assets are at risk: Where there is a real risk that an award debtor may dissipate or move assets, the courts have power under section 44 of the Arbitration Act 1996 – and section 37 of the Senior Courts Act 1981 – to grant freezing injunctions, including worldwide freezing orders in appropriate cases. The applicant must demonstrate a real risk that assets may be dealt with in a way that makes enforcement more difficult. The courts will not require proof that the debtor intends to dissipate assets – an objective risk is sufficient. Acting early is essential: delay in making the application can be fatal to its prospects.

• Consider the appointment of receivers: The court can order the appointment of receivers over an award debtor’s assets under section 44 of the Arbitration Act 1996. This can be a highly effective tool for protecting assets from dissipation, particularly where assets are held through complex or opaque corporate structures and has significant strategic value in contentious enforcement situations.

• Act promptly once an award is issued: Delay gives the award debtor time to move assets or commence set-aside proceedings at the seat. The right to enforce is also subject to a six-year limitation period running from the date the award debtor fails to honour the award. Once an award is in hand, move quickly.

• Be alert to insolvency risk: If an award debtor becomes insolvent, an award creditor will rank alongside other unsecured creditors, behind secured creditors and preferential claims. Assess your counterparty’s financial position early and consider accelerating enforcement if signs of financial distress emerge.

Conclusion

An arbitration award is a powerful legal instrument.  But it is a starting point for recovery, not the finish line. England and Wales offers one of the most effective enforcement environments in the world, backed by the New York Convention and a court system with a strongly pro-enforcement default. But collecting what you win still requires strategy, speed, and specialist advice.

The businesses that succeed at enforcement are those that think about it from the moment a contract is signed – identifying where counterparty assets are held and moving decisively once an award is issued. Enforcement is not a separate exercise that begins after arbitration ends. It is part of the same strategic picture, and the earlier that planning begins, the stronger the eventual position will be.

If you are holding a foreign arbitration award against a counterparty that may have assets or interests in England and Wales, RPC’s International Arbitration team can advise on the enforcement options available to you. We would be pleased to discuss your position and help you navigate your options.