JUDICIAL DECISIONS ON PUBLIC ORDER In Renusagar Power Plant Co. Ltd v. General Electric Co., (Renusagar case), the Supreme Court interprets the term "public order" to L 7(1)(b)(ii) of the Foreign Awards (Recognition and Enforcement) Act 1961 (Foreign Awards Act), applied the principles of private international law and held that an award would be contrary to public policy if such application was to be contrary to (i) the fundamental policy of Indian law; or (ii) the interests of India; or (iii) justice or morality and cannot be set aside on the merits. In Oil and Natural Gas Corporation Ltd. v. SAW Pipes Ltd., the aggrieved party challenged an unfavorable arbitration award because the arbitral tribunal had incorrectly applied liquidated damages law to the case. Finding that the challenged award was legally defective, the Court held that, in addition to the public policy interpretation in the Renusagar case, a domestic arbitral award can be set aside if it violates the “provisions of the [Arbitration and Conciliation] Act, 1996 ] or any other substantive law that governs the parties or is contrary to the terms of the contract”. The Supreme Court judgment in the SAW Pipes case added “Illegality of Patents” as the fourth public policy consideration to the three considerations previously enumerated in the Renusagar case. In the case of Gherulal Parakh v. Mahadeodas Maiyev, the Supreme Court observed that “Public Order” or the Politics of Law is an illusory concept. It has been described as "unreliable driving", variable quantity, "uncertain", "unruly horse" etc. The primary duty of a court is to enforce a promise made by the parties and uphold the sanctity of contracts. which form the basis of society, but in c...... middle of paper ......ment. Connotes a matter involving public good or public interest. The doctrine of “public policy” is somewhat open, structured, and flexible, and this flexibility has been the cause of judicial censure of the doctrine. The concept of “public policy” denotes what is good for the public or in the public interest or what would be harmful or harmful from time to time. The new concept of public policy replaces the old. Public Policy of India does not cover public order of the country, mere violation of law would not attract hindrance to public order, but the ruling must be against the “Fundamental Policy of Indian Law” or “The Interest of India ” or “Justice or Morals” or “Patently Illegal.” The principles governing what would be "public order" will have to be interpreted from time to time on the basis of the facts of each case and with the law applicable at the relevant time.
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