Supreme Court Sets Aside Award For "Non-Application Of Mind"

The judgement of the Supreme Court in ONGC v. Western Geco International Ltd. (2014) 9 SCC 263 ("Western Geco") continues to create havoc in the arbitration jurisprudence of India.

To elaborate, the Supreme Court explained in ONGC v. Saw Pipes Ltd. (2003) 5 SCC 705 ("Saw Pipes") that an award can be set aside under Section 34(2)(b)(ii) on the ground that it violates the public policy on India, if the award is inconsistent with: (a) fundamental policy of Indian law; or (b) the interest of India; or (c) justice or morality; or (d) if it is patently illegal.

Subsequently, in Western Geco., the Court further elaborated on the expression 'fundamental policy of Indian law', holding that it refers to the principles providing basis for administration of justice and enforcement of law in this country which included judicial approach, i.e. not acting arbitrarily or whimsically and acting in a fair, reasonable and objective manner without taking into account any