Scope of counterbalancing public policy and execution of foreign arbitral awards in India

Abstract

Public policy is an essential consideration in international arbitration, as well as domestic arbitration. In contrast to the latter, the former is becoming an increasingly restricted approach internationally, particularly in the context of enforcement of foreign arbitral awards. International arbitral tribunals should be cognizant of the problem, even if it is difficult while pronounce the judgement, because different jurisdictions may prioritize different aspects of public policy for a variety of reasons. This study will examine the many ways in which domestic courts have used the public policy concept in evaluating this exemption for the protection of state sovereignty in cases when a foreign award is incompatible with the law of the enforcing nation. Lastly, the author believes that the New York Convention of 1958’s pro-enforcement bias can be strengthened by this paper’s transnational perspective, which urges public policy to be justifiably compatible with the global public policy of a large community of nations. This perspective can also serve as a safety valve to ensure the effective enforcement of meritorious arbitral grants.