Anoushka Mehta is currently a penultimate year law student (B.A., LL.B) (Hons.) at Maharashtra National Law University Mumbai. She is a reviewer at Economic & Political Weekly and is also pursuing a Diploma in Advanced Contract Drafting, Negotiation and Dispute Resolution. She aims to write on legal issues alongside working in the area of corporate law.
SC uphelds foreign arbitration award in favour of Vedanta
The Supreme Court of India has upheld a foreign arbitration award in favour of Vedanta Ltd. (formerly Cairn India Ltd.). With this award, Vedanta is set to recover $499 million (approx. Rs. 3,700 crore) instead of $198 million for the development of Ravva oil and gas fields.
The top Court observed that the Malaysian Court had correctly examined the arbitration award.
"We conclude that the enforcement of the foreign award does not does not contravene the public policy of India, or that it is contrary to the basic notions of justice," the Bench said.
Supreme Court's verdict comes after the Delhi High Court had refused to interfere with the arbitral award.
Brief facts of the case
This case related to the production sharing contract for the oil fields that are located in the Krishna Godavari basin in Andhra Pradesh between 2000 and 2007.
Vedanta, along with Videocon had entered into a production-sharing contract for Ravva oil fields. As per the government, the companies recovered $499 million from the deal instead of the $198 million that they were allowed to.
This in turn led to a conflict between Vedanta and the Central Government leading to arbitration in Malaysia which ultimately favoured Vedanta. After the additional appeals in Malaysia failed, followed by the refusal of the Delhi High Court to hear the case, the Centre had approached the Supreme Court in June this year.
Vedanta shares soar in the stock market
The shares of Vedanta were said to rise by 3% with an intraday high of Rs. 138.80 after Supreme Court gave its decision.
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