SHANTHAMALLESHAPPA vs THE STATE OF KARNATAKA

The Supreme Court held that under Section 34 of the Arbitration and Conciliation Act, 1996, the court has the authority to set aside an arbitral award if it is found to be in conflict with public policy. The Court emphasized that the principles of natural justice must be adhered to in arbitration proceedings, and any violation thereof could lead to the award being set aside. The judgment clarified that the scope of judicial review in arbitration matters is limited, and the courts should refrain from re-evaluating the merits of the case.