Arbitral Award Delivered After Four-Year Delay Violates Public Policy: Supreme Court

The Supreme Court held that an arbitral award issued nearly 4 years after the conclusion of proceedings, without addressing the core dispute between the parties, violated India's public policy.

A Bench of Justices Sanjay Kumar and Satish Chandra Sharma observed that the unexplained delay rendered the award “rudderless,” causing prejudice to the parties and defeating the purpose of arbitration.

The Court clarified that while delay alone is not sufficient to annul an award, when such delay results in injustice or undermines arbitral efficiency, it justifies judicial interference under Section 34 of the Arbitration and Conciliation Act, 1996.

[Lancor Holdings v Prem Kumar Menon]