Principles under which an Arbitration award is open to interference by the court under section 34(2) of the Act – Supreme Court of India 

Delhi Development Authority v. R.S. Sharma and Co. MANU/SC/3624/2008 : (2008) 13 SCC 80,

The Supreme Court explained the legal position and the principles as given below.

(a) An award, which is

(i) contrary to substantive provisions of law; or
(ii) the provisions of the Arbitration and Conciliation Act, 1996; or
(iii) against the terms of the respective contract; or
(iv) patently illegal; or
(v) prejudicial to the rights of the parties.

is open to interference by the court under Section 34(2) of the Act.

(b) The award could be set aside if it is contrary to:

(i) fundamental policy of Indian law; or
(ii) the interest of India; or
(iii) justice or morality.

(c) The award could also be set aside if it is so unfair and unreasonable that it shocks the conscience of the court.

(d) It is open to the court to consider whether the award is against the specific terms of contract and if so, interfere with it on the ground that it is patently illegal and opposed to the public policy of India”