Post-hearing delay and the Public Policy Threshold in Arbitration (Lancor Holdings Ltd v Prem Kumar Menon)
Arbitration analysis: In Lancor Holdings Ltd v Prem Kumar Menon, the Supreme Court of India held that while mere delay in rendering an arbitral award is not an independent ground for setting it aside under Section 34 of the Arbitration and Conciliation Act, 1996, an inordinate and unexplained delay that materially affects the reasoning or renders the award unworkable may vitiate it on grounds of patent illegality or conflict with public policy. The court found that a nearly four-year post-hearing delay, coupled with contradictory reasoning and loss of adjudicatory coherence, defeated the fundamental objectives of arbitration - finality, fairness, and efficiency. Invoking its powers under Article 142 of the Constitution of India to avoid remanding a 16-year-old dispute to fresh arbitration, the court upheld the validity of the sale deeds executed by the developer but directed forfeiture of ₹10 crore in favour of the landowners as a condition for the developer reclaiming its contractual share. The ruling underscores that procedural legitimacy and timeliness are integral to arbitral justice, refining public policy review as limited safeguard against systemic arbitral failure rather than a vehicle for merits reappraisal. Practical implications written by Prasanth Raju of Chambers of Prasanth Raju.