In a recent matter, the Supreme Court of India has stated that merely re-labelling factual disputes as issues pertaining to public policy cannot be used to resist the enforcement of a foreign arbitral award.
The dispute arose from an attempt to stop the enforcement of a foreign award by arguing that the findings were contrary to the public policy of India. The Court however, noted that such arguments were basically a reframing of factual issues which were already examined by the arbitral tribunal.
The Supreme Court stated that under Section 48 of the Arbitration and Conciliation Act 1996, the scope of interference is very limited. Enforcement courts cannot reevaluate evidence or the findings on merits.
The Court also relied on the principle of transnational issue estoppel, while observing that issues which are already decided by a competent court at the seat of arbitration cannot be reopened at the enforcement stage.
This ruling reiterates India’s pro-arbitration approach and clarifies that the procedure as to enforcement cannot be turned into an appeal. Only genuine violations as to public policy can justify the need to stop the enforcement of an award.
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