Has Supreme Court Taken A Step Back In Its Recent Judgment In "NAFED Vs. Alimenta S.A."?

The Supreme Court on April 22, 2020 declared a foreign award unenforceable on the ground that one of the provisions of the Agreement in question was hit by Section 32 of the Indian Contract Act, 1872 and thus violative of public policy of India.

Brief Background:

1. NAFED and Alimenta S.A. entered into a contract dated January 12, 1980 ("first agreement") for the supply of 5,000 metric tonnes of Indian HPS groundnut ("commodity"). Clause 11 therein provided that terms and conditions would be as per FOSFA (Federation of Oil, Seeds and Fats Associations Ltd., London), 20 Contract, a standard form of contract which pertains to the CIF contract. NAFED was a canalizing agency for the Government of India for the exports of the commodity and therefor for any export, to be carried forward to next year from the previous year, NAFED required the express permission and consent of the Government of India. While the contracted quantity was 5000 metric tonnes, only 1900 metric