In a major setback for the federal government, the Supreme Court on Wednesday supported a foreign arbitration award in favour of Vadanta and Videocon for the advancement of the Ravva oil and gas fields off the coast of Andhra Pradesh between 2000 and2007 The judgment permitted the business to recover $499 million for the job, an amount that was topped at $198 million by the centre, dismissing the government’s appeal against the foreign arbitration award.
The Supreme Court said the Malaysian court appropriately examined the Ravva arbitration award, which does not upset public policy of India, as it is a subsequent event. The enforcement court can not reassess proof offered, it said.
The leading court maintained an order by the Delhi High Court, which refused to hinder the arbitral award in the production-sharing agreement (PSC) for Ravva oil fields in the Krishna Godavari basin. Cairn India (now Vedanta) and Videocon were permitted to recover $198 million according to the agreement.
In July 2014, the Malaysian Court of Appeals had supported the arbitral award allowing extra recoveries to Vedanta.
The disagreement centres around the production-sharing agreement between the business and the federal government over expedition of the Ravva oil fields between 2000 and 2007.
The Petroleum Ministry moved the top court in June this year, after the Delhi High Court declined to disrupt the arbitral award in favour of Vedanta.