SC’s struggles with ‘unruly horse’ of public policy in foreign awards

Jannie Delucca

The Supreme Court docket, in its recent judgment in the situation of Nafed vs Alimenta SA, refused to enforce a overseas arbitral award in a situation working with groundnut export in the nineteen eighties. In working with an outdated situation when India was a closed overall economy, it appears to have unintentionally pushed our legislation back by a few decades, given that it goes from the grain of settled rules earlier enunciated by the Supreme Court docket on enforcement of Overseas Arbitral Awards. The details of each of the circumstances dealt with by the apex court would differ, but the authorized rules appear to be at variance with each other.

The scope of refusing enforcement of a overseas arbitral award is really constrained, according to the statute. One particular narrow ground for refusal is that the award violates a nation’s main values. This is an onerous “public policy” ground of

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