Indian court takes new approach to public policy

The High Court in New Delhi has ruled that a narrow interpretation of public policy applies to challenges of foreign arbitral awards under the New York Convention.

In its effort to block the enforcement of an ICC award, Indian sports company Mayor International argued that the ICC award, which was rendered by the Sole Arbitrator Gabrielle Nater-Bass (Litigation / Arbitration partner at Homburger), violated Indian public policy. Mayor relied on the 2008 Supreme Court judgment which ruled that an LCIA arbitral award could be subject to challenge on public policy grounds; a decision which was strongly criticized by the international arbitration community.

The court in New Delhi now rejected these arguments and narrowed the purview of challenge to an award as being contrary to public policy, thereby limiting the impact of the 2008 Supreme Court decision and encouraging parties that look to enforce foreign arbitral awards in India.