The Delhi High Court on Wednesday allowed the enforcement of two foreign arbitral awards concerning a dispute valued at USD 64 million in favour of Vedanta Limited, dismissing all objections raised by the Union Government under the Arbitration and Conciliation Act, 1996. Holding that the Government’s challenge lacked merit, the Court allowed Vedanta’s enforcement petitions and directed that the bank guarantee furnished by the company be released within eight weeks from the date of pronouncement of the judgment.
The proceedings arose out of petitions filed by Vedanta Limited seeking enforcement of two foreign arbitral awards against the Government of India, Ministry of Petroleum and Natural Gas.
The Union Government opposed enforcement under Section 48 of the Arbitration and Conciliation Act. Rejecting the objections, Justice Jasmeet Singh held:
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“I find that the objections urged by the respondent to challenge the enforcement of the impugned awards are meritless and without substance. The respondent’s objections… are dismissed. The declaratory prayer made is allowed. Pending applications are disposed of. The bank guarantee submitted by the petitioner shall be released not later than eight weeks from pronouncement of this judgment.”