Section 48(2) in The Arbitration And Conciliation Act, 1996
(2)Enforcement of an arbitral award may also be refused if the Court finds that(a)the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or(b)the enforcement of the award would be contrary to the public policy of India.[Explanation 1. [Substituted by Act No. 3 of 2016 dated 31.12.2015.] - For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,-(i)the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or(ii)it is in contravention with the fundamental policy of Indian law; or(iii)it is in conflict with the most basic notions of morality or justice.Explanation 2. - For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute.]
