The Convention on the Recognition and Enforcement of Foreign
Arbitral Awards also known as the New York Convention itself lays
down1 that recognition and enforcement of an Arbitral
Award may be refused, if the award is contrary to the public policy
of the country enforcing it. The convention, however, does not
prescribe a definition of public policy but allows the States to
create their own standards.
With respect to domestic Arbitrations, Section 34(2)(b)(ii)
envisages that a domestic arbitral award can be set aside if a
court finds that the award is against the "public policy
of India". The legislature, by not precisely defining
'public policy' has left it open for judicial
interpretation.
