Public policy paradox in enforcement of Foreign Arbitral Awards in BRICS countries A comparative analysis of legislative and judicial approach

摘要

Purpose - The purpose of this paper is to analyze the specific legislative and judicial approaches of each of the BRICS countries toward recourse to public policy exception in the context of recognition and enforcement of foreign arbitral awards. Further, it points out the critical areas which need immediate attention to make these countries attractive destinations for parking of investments by international parties. Design/methodology/approach - The study is a conceptual paper that provides knowledge of the critical areas which needs immediate attention to make BRICS countries attractive destinations for parking of investments by international parties. The first part of the paper examines a guide map to the international business community to devise their dispute adjudication strategies before committing investments in any of BRICS economies. The second part examined the variegated notions of the concept of public policy exception and the existence of differences in judicial approaches. The next parts analyzed the specific legislative and judicial approaches of each of BRICS countries toward recourse to public policy. Findings - The BRICS countries need to spell out the universal principles applicable to construing the notion of public policy. It would reduce conflicts between national laws and help the municipal courts in determining the issue of enforceability of foreign awards by reference to a common yardstick. Hence, until a harmonized approach to public policy toward foreign awards is developed at an international level, the BRICS countries may take initiative to set up an inter-regional arbitration council to resolve intricate cases occurring in the field of application of public policy exception to foreign arbitral awards. Originality/value - The paper is an original work of the author.