Introduction
An arbitration clause is a sine qua non for companies
while executing commercial contracts. Arbitration is expected to
provide an easy and cost effective option for dispute resolution
and, as a consequence, the Indian parliament passed the Arbitration
and Conciliation Act of 1996 ("Act")
replacing the old 1940 law on arbitration. One of the key
objectives of the Act was to ensure that there is minimum judicial
intervention and finality once an award is issued. However, the
absence of finality has become a serious cause for concern for the
disputing parties on account of the challenges to awards.
The Act is divided into two parts; the first part deals with
arbitration proceedings conducted in India and their enforcement
and the second part deals with foreign arbitration proceedings and
its enforcement. The grounds of challenge to a domestic award are
covered in section 34 of the Act and public policy is one
such ground. The interpretation of the word pub
