Scope of the Expression “Public Policy” in Domestic and Foreign Awards
By
Phiroza Anklesaria
The expression “Public Policy” appearing in Section 34(2)(b)(ii) of the Arbitration and Conciliation Act, 1996 is construed so narrowly in the light of the SC Judgment in Renusagar Power Co. Ltd. v. General Electric Co. (AIR 1994 SC 860 : 1994 AIR SCW 252) M. N. Venkatachaliah C.J, S.C. Agarwal and Dr. Anand JJ.), that there is hardly any scope to maintain a challenge to a domestic award, however, genuinely justifiable it may be. Renusagar accepts an English Judgment relating to “enforceability” of foreign award and refuses enforcement of a foreign award on the ground of violation of “public policy” where fundamental concepts of English Justice, morality, human liberty and freedom of action are disregarded or the award is prejudicial to the interests of UK or its good relations with other countries (para 54 of Judgment). As against Renusagar, the Judgment of the Supreme Court in ONGC v. Saw Pipes Ltd., AIR 2003 SC 2629 : 2003 AIR SCW 3041, ....