In a significant obstacle to the main federal government and huge relief to Vedanta Ltd. and Videocon, the Supreme Court on Wednesday maintained a foreign arbitration award to recuperate $499 million, rather of $198 million topped by the Centre for Development of Ravva Oil and Gas fields off the Andhra Coast in between 2000 and 2007.
The leading court maintained Delhi High Court’s order which declined to hinder the arbitral award in production sharing agreement (PSC) for Ravva oil fields in the Krishna Godavari basin. Vedanta (previously Cairn India) and Videocon had actually participated in PSC for Ravva oil fields and according to the agreement Vedanta and Videocon was permitted to recuperate $198 million. The federal government declared that it had actually recuperated $499 million.
Following the dispute in between federal government and Vedanta, they participated in arbitration in Malaysia which favoured Vedanta. In July 2014, the Malaysian Court of Appeals maintained the arbitral award permitting extra healings to Vedanta.
After Delhi High Court declined to hinder the arbitral award in favour of Vedanta, the centre moved the leading court in June.
The Supreme Court in today’s judgment stated that Malaysian court appropriately took a look at Ravva oil field arbitration award and arbitral award does not upset public law of India as it is a subsequent occasion.
The leading court included that enforcement court can’t reassess proof readily available.