ISSUE:
Whether the Supreme Court's explanation of the meaning of "public policy" under Section 34 of the Indian Arbitration and Conciliation Act, as amended by the 2015 Act, result in a more predictable and constrained application of this ground for setting aside arbitration awards?
Whether the Supreme Court's decision on the prospective applicability of the 2015 Act to Section 34 applications effectively prevents the use of "public policy" and "patent illegality" as grounds for challenging domestic and foreign arbitration awards initiated prior to the 2015 Act's enactment?
RULE:
The Supreme Court's clarification of the scope of "public policy" under Section 34 of the Indian Arbitration and Conciliation Act, as amended by the 2015 Act, seeks to limit the broad interpretation of "fundamental policy of Indian law" and establishes specific criteria for assessing public policy challenges in arbitration. This rule aims to make the "public policy" justification for setting aside awards more predictable and restricted. The Supreme Court's decision on the future applicability of the 2015 Act to Section 34 applications establishes that the 2015 Act's modifications apply only to applications for setting aside awards filed on or after the 2015 Act's start date. This rule is meant to prevent "public policy" from being abused.