In Brief

Two hotel companies challenged a ₹1.57 crore arbitral award in a dispute with a finance company over outstanding loans at 24% annual interest. The Court upheld the award, holding that after the 2015 amendments to the Arbitration Act, 'public policy' grounds for setting aside awards are now narrowly confined. The Court rejected arguments that the high interest rate violated public policy or usurious laws, confirming that arbitrators have broad discretion to award interest at contractually stipulated rates. The decision reinforces that courts cannot re-examine factual findings or undertake broad merits reviews of arbitral awards.

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