In a setback to the government, the Delhi High Court on Friday in an interim order dismissed its appeal seeking reversing of the “unilateral deductions/recoveries” made by Vedanta Ltd towards the former’s payout from its Rajasthan oil and gas fields
The govt had sought to restrain Vedanta from implementing the 2023 arbitral award by making adjustments in the provisional estimates, pending quantification of liabilities in quarters Q2, Q3 & Q4 of FY 2023-2024 (in excess of 300 Million USD).
Justice Jasmeet Singh also refused to restrain Vedanta from making any further unilateral deductions or re-adjustment in the calculations made in furtherance of the award to the provisional estimates of Q2 and Q3 for FY24 as existed prior to the arbitral award for the estimates to be provided for Q4 FY23.
A detailed copy of the judgment is awaited.
As of now, Vedanta has adjusted $377 mn and is yet to adjust $157mn.
After Friday’s order, Vedanta is free to adjust the amount till quantification of final payout by the tribunal.
The dispute between the Directorate of Hydrocarbons and Vedanta - Cairn arose due to incorrect cost recovery and non-allocation of common costs that allegedly had a huge “adverse financial implication on the Profit Oil/Gas” payable to the government.
While seeking to set aside the August 2023 arbitration award, which was modified by a three-member arbitral tribunal in December2023, the government has claimed that the award conflicts with the public policy of India and the fundamental policy of Indian law.
This appeal against the final award is still pending in the HC
The govt had sought to restrain Vedanta from implementing the 2023 arbitral award by making adjustments in the provisional estimates, pending quantification of liabilities in quarters Q2, Q3 & Q4 of FY 2023-2024 (in excess of 300 Million USD).
Justice Jasmeet Singh also refused to restrain Vedanta from making any further unilateral deductions or re-adjustment in the calculations made in furtherance of the award to the provisional estimates of Q2 and Q3 for FY24 as existed prior to the arbitral award for the estimates to be provided for Q4 FY23.
A detailed copy of the judgment is awaited.
As of now, Vedanta has adjusted $377 mn and is yet to adjust $157mn.
After Friday’s order, Vedanta is free to adjust the amount till quantification of final payout by the tribunal.
The dispute between the Directorate of Hydrocarbons and Vedanta - Cairn arose due to incorrect cost recovery and non-allocation of common costs that allegedly had a huge “adverse financial implication on the Profit Oil/Gas” payable to the government.
While seeking to set aside the August 2023 arbitration award, which was modified by a three-member arbitral tribunal in December2023, the government has claimed that the award conflicts with the public policy of India and the fundamental policy of Indian law.
This appeal against the final award is still pending in the HC
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