In a serious setback to the central authorities and large reduction to Vedanta Ltd. and Videocon, the Supreme Court on Wednesday upheld a overseas arbitration award to recuperate $499 million, as a substitute of $198 million capped by the Centre for Development of Ravva Oil and Gas fields off the Andhra Coast between 2000 and 2007.
The prime courtroom upheld Delhi High Court’s order which refused to intervene with the arbitral award in manufacturing sharing contract (PSC) for Ravva oil fields within the Krishna Godavari basin. Vedanta (previously Cairn India) and Videocon had entered into PSC for Ravva oil fields and as per the contract Vedanta and Videocon was allowed to recuperate $198 million. However, the federal government claimed that it had recovered $499 million.
Following the battle between authorities and Vedanta, they entered into arbitration in Malaysia which favoured Vedanta. In July 2014, the Malaysian Court of Appeals upheld the arbitral award permitting further recoveries to Vedanta.
After Delhi High Court refused to intervene with the arbitral award in favour of Vedanta, the centre moved the highest courtroom in June.
The Supreme Court in at this time’s ruling stated that Malaysian courtroom rightly examined Ravva oil area arbitration award and arbitral award would not offend public coverage of India as it’s a subsequent occasion.
The prime courtroom added that enforcement courtroom cannot reassess proof accessible.