S. 34 Arbitration Act |Mere Violation Of Law Won't Make Arbitral Award Invalid, Fundamental Policy Of Law Must Be Violated : Supreme Court

The Supreme Court of India clarified the scope of judicial interference in arbitral awards under Section 34 of the Arbitration and Conciliation Act. The Court emphasized that mere violation of law is insufficient to invalidate an arbitral award; it must contravene the fundamental policy of Indian law. This interpretation was reinforced by the 2015 amendment, which narrowed the scope of what constitutes a violation of public policy. The Court highlighted that an award must breach fundamental principles essential to the administration of justice, such as natural justice or disregarding binding judgments. The decision underscores the limited grounds for setting aside arbitral awards, aiming to uphold the finality and efficiency of arbitration as a dispute resolution mechanism.