The Central Government received a major setback and giving a major relief to Vedanta Limited and Videocon, the Supreme Court on Wednesday granted a foreign arbitration award for recovery of $ 499 million in exchange for $ 198 million closed by the Center for the development of Ravan Oil and Gas Fields. Retained. Andhra Coast between 2000 and 2007.
The apex court upheld the order of the Delhi High Court which refused to interfere with the arbitration award in the Production Sharing Agreement (PSC) for Ravva oil fields in the Krishna Godavari basin. Vedanta (formerly Cairn India) and Videocon had entered PSC for the Ravva oil fields and according to the contract Vedanta and Videocon were allowed to recover $ 198 million. However, the government claimed that it had recovered $ 499 million.
After the conflict between the government and Vedanta, he entered into mediation in Malaysia which supported Vedanta. In July 2014, the Malaysian Court of Appeal upheld the arbitral award allowing Vedanta additional recovery.
After the Delhi High Court refused to interfere with the arbitral award in Vedanta’s favor, the Center moved the apex court in June.
The Supreme Court said in today’s judgment that the Malaysian court properly investigated the Ravva oil field arbitration award and the arbitration award does not nullify India’s public policy as it is a later event.
The apex court said that the enforcement court cannot recant the available evidence.