CS Professional · Arbitration, Mediation and Conciliation · Arbitration under Investors' Grievances Redressal Mechanism of Stock Exchanges

A foreign award in favour of Dhruv Capital is challenged in an Indian court by Anand Brokers on the ground that the award conflicts with public policy because the Indian court would have reached a different conclusion on the merits. Under the Explanations in section 48, how should the court treat this argument?

The argument fails. Explanation 2 to section 48 says the fundamental policy test does not entail a review on the merits of the dispute, so a court's different view of the merits cannot make a foreign award contrary to Indian public policy.

1. AThe argument succeeds because any disagreement on merits shows contravention of fundamental policy
2. BThe argument fails because the test of contravention of fundamental policy of Indian law does not entail a review on the merits of the disputeCorrect
3. CThe argument succeeds because public policy is not defined
4. DThe argument succeeds if the award is more than one year old