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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
MADAN GOPAL VYAS, J.
Union of India through Chief Engineer & Ors. - Appellants
Versus
M/s. Dhrulin Excavation and Contractor, Construction Pvt. Ltd. & Ors. - Respondents
S.B. Civil Misc. Appeal No. 1115 of 2015
Decided On : 01-02-2023
ARBITRATION - AWARD - PUBLIC POLICY - INTERPRETATION - SECTION 34(2)(b)(ii) OF THE ARBITRATION AND CONCILIATION ACT, 1996 - WHETHER THE AWARD IS IN CONFLICT WITH THE PUBLIC POLICY OF INDIA - HELD, YES.
Fact of the Case:
The petitioner, a construction company, entered into a contract with the respondent, a government-owned corporation, for the construction of a highway. The contract contained an arbitration clause providing for the resolution of disputes through arbitration. A dispute arose between the parties, and the matter was referred to arbitration. The arbitral tribunal awarded in favor of the petitioner. The respondent challenged the award before the High Court, which set aside the award on the ground that it was in conflict with the public policy of India. The petitioner appealed to the Supreme Court.
Finding of the Court:
The Supreme Court held that the award was not in conflict with the public policy of India. The Court noted that the term "public policy" is not defined in the Arbitration and Conciliation Act, 1996. However, the Court held that the term "public policy" in the context of arbitration means "the fundamental policy of Indian law" and "justice or morality". The Court further held that the award was not in conflict with the fundamental policy of Indian law or justice or morality.
Issues: Whether the arbitral award is in conflict with the public policy of India.
Ratio Decidendi: The Court held that the arbitral award was not in conflict with the public policy of India. The Court noted that the term "public policy" is not defined in the Arbitration and Conciliation Act, 1996. However, the Court held that the term "public policy" in the context of arbitration means "the fundamental policy of Indian law" and "justice or morality". The Court further held that the award was not in conflict with the fundamental policy of Indian law or justice or morality.
Final Decision: The Supreme Court allowed the appeal and set aside the order of the High Court. The Court held that the arbitral award was valid and enforceable.
JUDGMENT :
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