Q: Describe the citation of Venture Global Engineering Llc vs Tech Mahindra Ltd & Anr Etc on 1 November, 2017 ?

Ans: Venture Global Engineering Llc vs Tech Mahindra Ltd & Anr Etc on 1 November, 2017.

In Venture Global Engineering LLC and Ors. v. Tech Mahindra Ltd. and Ors[37]., The Court interpreted that violation of the provision of the Foreign Exchange Management Act (FEMA) will be considered as patent illegality, and therefore a breach of public policy, based on the Associate Builders case. 

As a consequence, the application filed by the Venture (appellant herein) under Section 34 of the AAC Act, out of which these appeals arise, is allowed. As a result thereof, the entire arbitral proceedings including the Award dated 03.04.2006 passed by the sole Arbitrator is set aside as being against the public policy of India under Section 34(b)(ii) read with Explanation I(i)(ii) and (iii) of the AAC Act.

Relevancy with our case: 

Public policy is a system of laws, regulatory measures, guidelines, and funding priorities identified by governments or their representatives to fulfil public interest goals.  

It is against the public policy to make delay in construction without appropriate cause and hence it is also a breach of contract, thus the arbitral award must be set aside.

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