The expression “fundamental policy of Indian law” in Section 34 of Arbitration and Conciliation Act, 1996 cannot be interpreted in wide terms to include violation of any Act or Statute – Oil India Ltd. Vs. Techno Canada Inc. – Delhi High Court
Hon’ble High Court held that the expression “fundamental policy of Indian law” cannot be interpreted in wide terms to include violation of any Act or Statute. A clear distinction must be drawn between challenge to an award on account of patent illegality under Section 34(2A) of the A&C Act and the challenge to an award on the ground that it is in contravention of the fundamental policy of Indian law. In ONGC Ltd. v. Western Geco International Limited (2017) ibclaw.in 549 SC, the Supreme Court had explained the concept of fundamental policy of Indian law to encompass three juristic principles. First, the judicial approach; second, the principles of natural justice; and third, reasonableness as understood in the sense of the Wednesbury principle, that is, no reasonable person could possibly arrive at the said conclusion.
