Delhi High Court Limits Challenges Over “Public Policy” in Foreign Arbitral Awards

The Delhi High Court has ruled that the scope of interpreting "public policy of India" as a ground to challenge a foreign award under Section 48(2)(b) of the Arbitration Act is very limited.

The court held that a tribunal’s direction to transfer shares, even if beyond the contract’s terms, does not automatically violate India’s fundamental policy.

Enforcing such an award is not a bar unless it is patently illegal or violates the most basic notions of morality or justice.

The court emphasised the pro-enforcement bias of the Act and restricted judicial intervention in foreign arbitral awards.