ORIENT POWER COMPANY (PRIVATE) LIMITED vs SUI NORTHERN GAS PIPELINES LIMITED art

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ORIENT POWER COMPANY (PRIVATE) LIMITED VS SUI NORTHERN GAS PIPELINES LIMITED art. V(2)(b)--- Recognition and Enforcement (arbitration agreements and Foreign arbitral awards) act (XVII of 2011), S. 6 & Preamble---International commercial arbitration---arbitral award---Recognition and enforcement of arbitral award may be refused if the award would be contrary to "public policy" of that country" --- Public policy exception---Scope---Public policy exception acted as a safeguard of fundamental notions of morality and justice, such that the enforcement of a foreign award may offend these fundamentals---Public policy exception was never meant to be given a wide scope of application---Most courts world over favoured a restrictive approach to public policy in international commercial arbitration---Public policy exception should not become a back door to review the merits of a foreign arbitral award or to create grounds which were not available under art. V of the New York Convention as this would negate the obligation to recognize and enforce foreign arbitral awards---Such kind of interference would essentially nullify the need for arbitration clauses as parties would be encouraged to challenge foreign awards on the public policy ground knowing that there was room to have the Court set aside the award---Public policy defense was an exceptional one, which demanded heightened standards of proof that courts would normally require in order to refuse recognition and enforcement of a foreign arbitral award---Such heightened standard of proof was compatible with the exceptional nature of the public policy defense as well as with the fact that art. V(2)(b) of the New York Convention provided a mere facility to the courts and not an obligation.

ORIENT POWER COMPANY (PRIVATE) LIMITED vs SUI NORTHERN GAS PIPELINES LIMITED art — 2021 SCMR 1728 SUPREME-COURT

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