The “public policy” ground for setting aside an arbitral award has been the subject of considerable debate in the realm of arbitration law. The Indian Supreme Court in the case of ONGC v. Saw Pipes, while giving an expanded meaning to “public policy,” held that a “patently illegal arbitral award” is against public policy and hence could be set aside by courts on that ground. The judgment was widely seen as erroneous by legal commentators and practitioners alike. This article, however, attempts to present a counter–view and argues that the Indian Supreme Court’s judgment in Saw Pipes, contrary to the views of many, has in fact laid down a correct and sound legal principle giving the doctrine of public policy its full amplitude.
Journal of International Arbitration