Public Policy Vis-a-Vis Enforcement of Foreign Arbitral Awards: Some Reflections on the Indian Approach

Abstract

The application of public policy defense for refusing the enforcement of international arbitral awards in India remains a major reason for vexation to foreign traders and investors. But, the real question is whether this concern is just a hypothetical discourse or whether it has become an actual threat. The paper attempts to address this question by reviewing a number of cases that deal with the handling of public policy exceptions by Indian courts. It aims to clarify the approach taken by Indian judiciary with respect to the scope and content of public policy as a challenge to enforcement of arbitral awards. An evaluation of the extent to which the so called Indian approach follows the international norms is also attempted.