Abstract:
In Today‘s world, the adjudicatory system of arbitration is replacing the court proceeding,
because of its more private, economic, rapid, certain, and enforceability of foreign arbitral award.
However states for different political, social and, economic reasons enacted different ground of
refusal of enforcement arbitral award by empowering national courts if such enforcement of
arbitral award would be contrary to the public policy of their countries. With highly changing
situation of the globalization in the area of commerce, countries are striving towards adopting
arbitration law friendly with the view to accommodate the difficult that may result in commercial
transaction especially on enforcement of the foreign arbitral award. However the Ethiopian
arbitration law seems to be inadequate because of the current arbitration and conciliation
working procedure proclamation does not have provided what should be the element of public
policy for refusal enforcement of foreign arbitral award. Unlike Ethiopia commercial arbitration
law, the Indian country has improved both its commercial arbitration law and court practice to
provide effective dispute settlement. Thus, the criteria must be clearly promulgated and applied
so that the rules can be conducive to the steadily increasing practice of modern arbitration. So in
these short theses I look in Ethiopia and Indian commercial arbitration law and court practice and
provided comparative analyze reference to public policy exception to enforcement of foreign
arbitral award.
