Delhi HC has rejected Centre’s plea against Vodafone’s International Arbitrations

May 7,2018:

On Monday, Delhi High Court dismissed Centre’s plea challenging Vodafone’s move to initiate two International Arbitrations against India in connection with a tax demand of ₹ 11,000 crore under a retrospective law of 2012.

Justice Manmohan stated that Centre can approach UK Arbitration Tribunal under India-United Kingdom Bilateral Investment Protection Agreement (BIPA) for its grievance.

Vodafone has initiated the arbitration proceedings under the India-United Kingdom and India-Netherlands Bilateral Investment Protection Agreement in connection with the tax demand raised against the company in relation to its USD 11 billion deal to acquire the stake of Hutchison Telecom.

While proceedings under India-Netherlands BIPA were pending, the telecom major initiated second arbitration under India-UK BIPA as well on January 24, 2017.

Centre had submitted before HC Bench that Vodafone Group had abused the process of law by initiating two international arbitrations.

Challenging the second arbitration, Government added that the two claims were based on the same cause of action and they seek identical reliefs, but from two different tribunals constituted under two different investment treaties against the same host state