Misunderstanding Of Basic Contractual Framework Vitiates Arbitral Award: Delhi High Court

The Delhi High Court ruled that an arbitral award can be challenged on public policy grounds under the Arbitration and Conciliation Act. The court emphasized that a challenge is permissible if the award is deemed to be contrary to the fundamental policy of Indian law, or if it is in conflict with the basic notions of justice or morality. The decision reinforces the importance of ensuring that arbitral awards align with the core values and principles of the Indian legal system. This ruling helps clarify the scope of judicial intervention in arbitration proceedings, ensuring that awards do not violate public policy.