The Scope of Public Policy beneath the Arbitration and Conciliation act 1996
Interpreting the doctrine of public policy of India in its broader read, courts of law could intervene allowing recourse against an arbitrational award supported irregularity of a form that the court considers has caused or can cause substantial injustice to the person. In situations where an arbitrational tribunal has gone wrong in its conduct of arbitration that justice calls out for it to be corrected could with reason fall at intervals the extent of the doctrine of 'Public Policy of India" to enable courts of law in India to intervene beneath section thirty-four of the 1996 Act allowing recourse against the arbitrational award.
Section 34(2)(b)(ii) states that an arbitrational award could also be put aside by the Court if the arbitrational award is in conflict with the general public policy of India. it's tough to interpret the means of "public policy" because it has not been outlined within the Act. However, within the broader read, the doctrine of "Public Policy" is comparable to the "Policy of Law," whatever ends up in obstruction of justice or violation of a statute or is against the good morals once created the item of contract would be against 'Public Policy of India" and being void, wouldn't be at risk of social control.
In Renusagar Power electric company v. General Electric Company, a pre-1996 Act case involving enforcement of an ICC Award, the Hon'ble Supreme Court explained the expression Public Policy in section seven (1) (b) (ii) of the Foreign Awards (Recognition and Enforcement) Act, 1961. The Court expressed that the term public policy has been employed in a slender sense and so as to draw in the bar of public policy, the enforcement of the award should involve something more than the violation of the Indian Law. Applying the same criteria, social control of a far off award would be refused on the ground of public policy if such social control would be contrary to:
- Elementary Policy of Indian Law; or
- The interests of India; or
- Justice or morality.
In Conclusion, the phrase 'Public Policy of India' employed in Section thirty-four in context is needed to be a wider meaning. It can be declared that the conception of public policy connotes some matter that issues public good and also the public interest. what's for the public good or in the public interest or what would be injurious or harmful to the general public good or public interest has varied from time to time. However, the award that is, on the face of it, plainly in violation of statutory provisions can not be said to be in the public interest. Such award is probably going to adversely have an effect on the administration of justice."
(This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, or Religion, Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.)