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1 - 4 of 4 (0.37 seconds)Oil & Natural Gas Corporation Ltd vs Saw Pipes Ltd on 17 April, 2003
21. Mr. Sharan, learned senior counsel appearing for the appellant, also
challenged the arbitral award on the ground that the same is in conflict
with the public policy of India. We do not find any substance in the said
submission. This Court, in the case of Oil and Natural Gas Corporation
Ltd. (supra), observed that the term ‘public policy of India’ is required
to be interpreted in the context of jurisdiction of the Court where the
validity of award is challenged before it becomes final and executable.
The Court held that an award can be set aside if it is contrary to
fundamental policy of Indian law or the interest of India, or if there is
patent illegality. In our view, the said decision will not in any way come
into rescue of the appellant. As noticed above, the parties have entered
into concluded contract, agreeing terms and conditions of the said
contract, which was finally acted upon. In such a case, the parties to the
said contract cannot back out and challenge the award on the ground that
the same is against the public policy. Even assuming the ground available
to the appellant, the award cannot be set aside as because it is not
contrary to fundamental policy of Indian law or against the interest of
India or on the ground of patent illegality.
Section 30 in The Arbitration Act, 1940 [Entire Act]
Section 23 in The Indian Contract Act, 1872 [Entire Act]
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