ABSTRACT

This chapter provides a comprehensive evaluation of the approach of the Indian legislature and courts towards the interpretation and application of the public policy exception, particularly in the context of the enforcement of foreign arbitral awards. The assessment not only looks into the reasons behind the concerns raised regarding the interpretation and application of the public policy exception by Indian courts in the context of international commercial arbitration, but also highlights the steps taken to better the position on the issue at hand. The decisions of Indian courts dealing with matters of international commercial arbitration, where the issue of public policy exception was involved, continued to be marred with controversies owing to the inconsistency in approach towards interpretation of public policy.