SC junks govt plea vs order allowing Vedanta to continue arbitration
This story was originally published at 23:21 IST on 16 July 2024
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NEW DELHI – The Supreme Court today paved the way for Vedanta Ltd to recover arbitration costs from the government after it upheld a Delhi High Court order allowing continuation of arbitration proceedings between the parties. Vedanta had moved the arbitral tribunal claiming 633,031 pound sterling, or 68.49 mln rupees, from the government towards costs incurred by it.
"We are not inclined to interfere with the impugned judgement and order passed by the high court. The special leave petition is, accordingly, dismissed," said the Bench of Justice B.R. Gavai and Justice Sanjay Karol and Justice K.V. Viswanathan. The dispute arises out of a production sharing contract entered by the government with Vedanta in relation to the Ravva oil and gas field. Thereafter, certain issues arose between the parties in relation to basic development costs, which led to commencement of arbitration proceedings.
In 2011, a final award was made by the arbitral tribunal favouring Vedanta. The government's plea challenging the award is still pending. In the meantime, Vedanta had moved the tribunal to seek arbitration costs from the government. The government had objected, saying that the tribunal had become "functus-officio" after the passage of the final award. Though a single judge of the high court had granted an injunction against the tribunal, the division bench lifted the same.
Today, the shares of Vedanta Ltd closed 0.9% lower at 455.50 rupees on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
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