Delhi High Court: Public Policy While Considering Enforcement Of Foreign Awards Has To Be Constructed Narrowly, In Consonance With International Notions [Arbitration Act]

The Delhi High Court in the case Mercator Ltd. Vs Dredging Corporation Of India Ltd And Connected Matters observed and has held that the public policy argument while considering enforcement of foreign awards has to be construed narrowly and in consonance with international notions of public policy.

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The bench headed by Justice Prateek Jalan in the case held that all violations of statute or supporting legislation do not satisfy this ground, and violations must be of fundamental policies considered shocking to the conscience of the Court.

FACTS OF THE CASE:

The present matter pertains to arbitral awards stemmed concerning three charter party agreements with regards to dredgers Triloki Prem, Banwari (Darshani) Prem, and Bhagwati Prem, respectively, owned by Mercator Ltd.

The judgment debtor, Dredging Corporation of India Ltd., hired these dredgers.

The dispute arose with regards to the applicability of the Arbitration and Conciliation Act, 1996, the Arbitration Act, whether under Part I for India-seated arbitral proceedings or Part II for foreign-seated ones.