Article 137 of Limitation Act, which prescribes a period of three years from when the right to apply accrues. Vedanta approached the Apex Court challenging the Madras High Court decision of rejection to open Sterlite Tuticorn plant. Post the judgment in Shri Lal Mahal, several High courts sought to retrench the onerous threshold for resisting enforcement under Section 48(2)(b) of the Act. v Lungowe and others [2019] UKSC 20; a long awaited decision on parent company liability and the jurisdiction of English courts over transnational torts. The Supreme Court has ruled today that a case brought by almost 2,000 Zambian villagers against Konkola Copper Mines (KCM) and its parent company Vedanta Resources Plc can be heard by the English courts. A local court also rejected Vedanta’s plea in August. This is especially paramount since the legislature has consciously made amendments in recent years to provide more relaxations for international commercial arbitration ( e.g. Lord Wilson, Lord Hodge, Lady Black, Lord Briggs. ], Government of India v. Vedanta Limited: Supreme Court fortifies pro-enforcement approach, clarifies limitation period. The Tamil Nadu State Pollution Control Board (TNPCB) shut down Vedanta’s Sterlite copper plant in Thoothukudi in 2018, citing violations of environmental laws. Click here to join our channel (@indianexpress) and stay updated with the latest headlines. However, few positives have already been factored in the market in last 10 trading sessions. The Michigan Supreme Court is providing the information on this site as a public service. The State Pollution Control Board had, in April 2018, refused to renew the Consent to Operate certificate for the plants on the grounds that it had failed to adhere to norms. When the Supreme Court announced its verdict to hand the decision on Vedanta’s Niyamgiri mine back to the Dongria Kond and other affected people via a complex process of legal claim filing, gram sabhas and a final MoEF nod, both Vedanta and their opposition celebrated. The narrow approach adopted by the Supreme Court in instant case is thus consistent with the objective of the New York Convention and in also in sync with contemporary pro-arbitration jurisprudence. Neutral citation number [2019] UKSC 20. The Supreme Court on Wednesday declined to grant any immediate interim relief to Vedanta Ltd to run its copper smelter plant in Tamil Nadu’s Thoothukudi and said it will hear in detail its plea challenging the state government’s decision to close … Oliver Holland, solicitor at … defendant Vedanta Resources plc (“Vedanta”) is the ultimate parent company of KCM. Moreover, the court declined to order status quo until Vedanta moved the Supreme Court for recourse. § Residents of Thoothukudi gathered to protest the Sterlite copper-smelting plant (right) in May 2018. Credit: Sachin Babu/Facebook and PTI. Vedanta Resources PLC and another (Appellants) v Lungowe and others (Respondents) Judgment date. 56 The Court’s frustration was palpable in Lord Briggs’ irritated rebuke to the defendants for ‘ignoring’ the well-known warnings … Reflections of an intern: Awaiting landmark decision in UK Supreme Court case on parent company liability. Konkola and Vedanta then appealed to the Supreme Court. Aggrieved, the Government of India filed an appeal before the Apex Court. Tamil Nadu … The bench also dismissed the challenge, in the petitions, to the orders passed by the PCB directing the closure of the plant under the Air and Water Acts and rejected the petitioner’s application for renewal of consent under the Air and Water Acts. However, the Malaysian High Court upon the application of Malaysian Arbitration Act, 2005 found no reason which would merit intervention with the award. v Lungowe and others [2019] UKSC 20 will undoubtedly have an impact on such claims. Vedanta Ltd., controlled by billionaire Anil Agarwal, suffered a blow after a top court stalled the resumption of operations at its Indian copper smelter, dashing hopes of a … Avitel v HSBC: Finally a Uniform Standard on Arbitrability of Fraud? The recent decision of the Supreme Court in Vedanta Resources PLC and another v Lungowe and others 1 concerned the first type of case and resulted in success for the claimants in establishing jurisdiction here. Supreme Court will otoday pronounce its verdict on the petitions challenging the validity of the Centre's plan to redevelop Central Vista project. Importantly, the decision would not prejudice those who did not act within the three-year period as the Supreme Court has granted liberty to seek condonation of delay in filing application for the enforcement of the award and has expounded that the ambiguity on the issue of limitation period is sufficient ground to condone delays. Judgment (PDF) Press summary (PDF) Accessible versions. Vedanta then moved an application for enforcing the award at the Delhi High Court, which allowed the application and directed the government to make the payments. Case Comment: Vedanta Resources Plc & Anor v Lungowe & Ors [2019] UKSC 20. ), [1] Government of India v. Vedanta Ltd., 2020 SCC Online SC 749, [2] NAFED v. Alimenta, 2020 SCC OnLine SC 381, [3] Bank of Baroda v. Kotak Mahindra Bank, 2020 SCC OnLine SC 324, [4] Renusagar Power Co. Ltd. v. General Electric Co., 1994 Supp (1) SCC 644, [5] Noy Vallesina Engineering Spa v. Jindal Drugs Limited., 2006 SCC OnLine Bom 545, [6] Bharat Salt Refineries v. Compania, OSA No. The Supreme Court refused to issue a so-called stay halting the NGT`s decision, said Vedanta Legal Counsel Aryama Sundaram in a voice recording sent by Whatsapp to reporters by the company`s public relations firm Brand-comm after the high court session. The Supreme Court held that there was no such abuse of EU law. Seat v Venue of Arbitration: A Quest for Clarity (Part II), Seat v Venue of Arbitration: A Quest for Clarity (Part I), Government of India v. Vedanta Limited: Supreme Court fortifies pro-enforcement approach, clarifies limitation period, Patel Engineering v NEEPCO: Supreme Court sets aside Award for Patent Illegality. In its plea before the Supreme Court, Vedanta challenged the Madras High Court’s August 2020 decision refusing the request for the reopening of the copper smelter plant. "The doctrine of … Enter your email address to follow this blog and receive notifications of new posts by email. It is the parent of a multinational group, listed on the London Stock Exchange, with interests in minerals, power, oil and gas in four continents. The decision, delivered by Lord Briggs, is less clear than could be hoped. Change ), You are commenting using your Google account. The aforesaid provision  imposed a “cap” on the payment of the development costs to be made for the construction of the production capacity of 35000 barrels of oil per day to a particular “sum”. The Supreme Court refused to issue a so-called stay halting the NGT’s decision, but admitted the Tamil Nadu state’s appeal before the high court, allowing that case to proceed. Any exceptions to Article 4.1 are to … The subsequent appeal to the Malaysian Court of Appeal was squarely rejected in 2014 to which the Indian government preferred a leave to appeal before the Malaysian Federal Court, which was also dismissed in 2016. Supreme Court will otoday pronounce its verdict on the petitions challenging the validity of the Centre's plan to redevelop Central Vista project. 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The Court placed reliance on the decision of the Supreme Court in Renusagar Power Ltd v. General Electric Co [4] to hold that the public policy defence should apply only where enforcement of the award would violate the basic notions of morality and justice of the forum state. On 15–16 of January 2019, the UK Supreme Court heard an appeal in the case of Vedanta Resources PLC and another v Lungowe and others. In view of this pro-enforcement approach, Section 48 (2) (b) does not permit a review on the merit of the foreign award. Change ), You are commenting using your Twitter account. On August 18, the Madras High Court dismissed a plea by the company seeking the smelter's reopening. The Supreme Court unanimously decided the case should proceed in English courts, dismissing the appellants’ arguments against English courts assuming jurisdiction. 52/2008, [8] Renusagar Power Co. Ltd. v. General Electric Co., 1994 Supp (1) SCC 644, [9] Phulchand Exports Ltd. v. O.O.O Patriot, (2011) 10 SCC 300, [10] Shri Lal Mahal Ltd. v. Progetto Grano Spa.,(2014)2 SCC 433, [11] Vijay Karia v. Prysmian Cavi E Sistemi., 2020 SCC Online SC 177Vijay Karia v. Prysmian Cavi E Sistemi SC 177, [12] NAFED v. Alimenta, 2020 SCC OnLine SC 381, [13] Renusagar Power Co. Ltd. v. General Electric Co., 1994 Supp (1) SCC 644. The Supreme Court has denied interim relief to Vedanta refusing the immediate reopening of the Sterlite plant for now, which remains shut since May 2018 over violations of environmental laws. Learn how your comment data is processed. However, on a suggestive note, the Indian Courts should also attempt to shorten the timeline for the enforcement of domestic awards, which is twelve years, to ensure speedy and cost-effective resolution of disputes that arise in international commercial arbitration. [2] The judgment also holds significance as the Supreme Court has finally settled the ambiguity concerning the period of limitation for enforcement of a foreign award. Although every effort is made to maintain accurate information on this site, the Michigan Supreme Court does not guarantee the accuracy of … Vedanta Resources and subsidiary to face justice the UK over human rights harms in Zambia APRIL 10, 2019 Today, the ICJ and the CORE Coalition welcomed the decision of the United Kingdom Supreme Court to allow a complaint to proceed against Vedanta Resources Plc and its Zambian subsidiary Konkola Copper Mines (KCM), alleging serious harm from extraction activities in Zambia. In view of the foregoing, the Supreme Court’s decision in Vedanta is a welcome ruling. Senior advocate Abhishek Manu Singhvi appearing for Vedanta submitted in the court that the plant provide employment to 4000 people and fulfills 36% or country copper needs and said that India is dependent on imports of copper after the shut down . Judgment (Accessible PDF) The Supreme Court on Monday adjourned to February a plea filed by Goa Congress Chief Girish Chodankar seeking for a direction to the Goa Assembly … The Supreme Court handed down on 10 April 2019 its much anticipated judgment in Vedanta Resources PLC and another (Defendants/Appellants) v Lungowe and others (Claimants/Respondents) [2019] UKSC 20 ("Vedanta"). Monday 25 March 2019. New Delhi, Aug 26: Vedanta on Wednesday moved to the Supreme Court challenging the Madras High court's order, which had rejected Vedanta's … The Indian government challenged the award in the Malaysian High Court on the grounds of public policy. In 2008, the Arbitral Tribunal seated in Malaysia passed an award in favour of Vedanta Limited & Others. Daniel Vollmer, IBAHRI intern. Subsequently, protests against the plant led to police firing in which 13 people were killed. The Supreme Court on Monday sought a response from the Tamil Nadu government on an appeal filed by Vedanta Ltd. against the Madras High Court’s … ground of patent illegality cannot be invoked in international commercial arbitration, and time line of 1 year for completion of arbitral proceedings is not applicable to international commercial arbitration. Anger against the company and the government is still palpable in this southern coastal town. Vedanta Limited on Tuesday said it will consider all legal options including, appealing to the Supreme Court against the Madras High Court verdict refusing to allow the reopening of Sterlite Copper plant at Thoothukudi in Tamil Nadu. Vedanta Resources PLC and Another v. Lungowe and Others. The Supreme Court’s ruling means the case against Vedanta and KCM can be heard in the British High Court, as the Zambian claimants initially wanted, and enables Vedanta, which is headquartered in London and has a market capitalisation of around $3.14bn, to be … The Madras High Court had on August 18, 2020 dismissed the company’s plea seeking permission to reopen the plant which was closed following protests over pollution. The Court has finally put to rest the ambiguity in computing the period of limitation for filing enforcement proceedings, which was long pending to be resolved because of conflicting decisions of High Courts. Consequently, disparate views had been proffered by several High Courts on this issue. The Supreme Court recently in a judgment titled Government of India (GOI) v Vedanta Ltd.[1] (Vedanta) has rendered a decision affirming the pro-enforcement outlook with respect to the enforcement of a foreign award in India, which had taken a step back after the decision of Supreme Court in NAFED v. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. The dispute emanated from Article 15 of the Production Sharing Contract executed by the parties in 1994. The case was argued extensively over two days, and subject to two interventions. Even the Supreme Court in Vijay Karia v. Prysmian Cavi Sistemi SRL,[11] refused to interfere with foreign arbitral awards, and held that Section 48(2)(b) does not permit review on merits. 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New Delhi: The Supreme Court on Tuesday gave the government go-ahead for the Central Vista project.“We hold that there are no infirmities in clearances given, change in … The Supreme Court on Wednesday dismissed the interim plea of Vedanta seeking permission to inspect its Sterlite copper unit at Tuticorin in Tamil Nadu, which is … The Supreme Court’s decision. Although Vedanta … In a landmark ruling, the Indian Supreme Court today rejected an appeal to allow Vedanta Resources to mine the Niyamgiri hills. ( Log Out /  This ruling could have wider implications for companies who make public commitments relating to their responsibilities to communities and the environment and then fail to put these into practice. Part II of Arbitration and Conciliation Act, 1996 does not contain any provision prescribing a period of limitation for filing an application for the enforcement of a foreign award under Section 47. Background. KCM was … The Supreme Court recently in a judgment titled Government of India (GOI) v Vedanta Ltd. (Vedanta) has rendered a decision affirming the pro-enforcement outlook with respect to the enforcement of a foreign award in India, which had taken a step back after the decision of Supreme Court in NAFED v. Alimenta. Justices. T [This guest post is authored by Dhriti Mehta and Donika Wahi. The Supreme Court on Wednesday declined to grant any immediate interim relief to Vedanta Ltd to run its copper smelter plant in Tamil Nadu’s Thoothukudi and said it will hear in detail its plea challenging the state government’s decision to close the plant over allegations of environmental pollution. The Supreme Court ruled that Vedanta must be held accountable for these publicly made statements and it therefore has a duty of care towards the claimants. Moreover, the court declined to order status quo until Vedanta moved the Supreme Court for recourse. The decision undoubtedly paves the way for more environmental and human … The court judges knew what they had done. ( Log Out /  The recent landmark judgment of the UK Supreme Court in Vedanta Resources PLC and another v Lungowe and others [2019] UKSC 20 (“Vedanta”) has confirmed that a lawsuit brought by 1,800 Zambian villagers can be heard in London despite arguments by Vedanta that the case should be tried by the Zambian courts. Lava's Z phones can customised, upgraded: How will it work? Vedanta’s own published materials, reporting on the implementation of its group-wide policies on environmental management, formed the basis of the judge’s conclusion that there was an arguable case against Vedanta. India's Supreme Court has given permission for the British-owned Vedanta mining company to begin extracting bauxite from the Niyamgiri mountain in Orissa state. The UK Supreme Court's (UKSC) recent, landmark judgment in Vedanta Resources PLC and anor. A three-judge Bench headed by Justice Rohinton Fali Nariman posted the case for detailed hearing in January 2021. The Supreme Court, on Wednesday, refused to grant interim relief to Vedanta Sterlite declining the mining giant’s plea for immediate reopening of its copper plant at Thoothukudi. The Indian Express is now on Telegram. This site uses Akismet to reduce spam. The High Court had concluded Vedanta was sued in England genuinely, albeit that attracting English jurisdiction over KCM was an important contributor to that decision. However it may, in time, have the effect of limiting jurisdiction in the second type of case. The relevant background to the Vedanta decision can be set out fairly briefly. MUMBAI: Supreme Court's verdict on Niyamgiri mines today and on Goa mining tomorrow will decide the stock price movement of Sterlite Industries and Sesa Goa on the bourses in the short term. Tuesday April 30, 2019. In December, India`s National Green Tribunal (NGT) revoked the state decision to shut the plant leading Tamil Nadu to appeal the NGT ruling. Views expressed on this blog are strictly personal and attributable solely to the author(s). ( Log Out /  A three-judge Bench headed by Justice R F Nariman posted the company’s appeal, which challenged the Madras High Court verdict upholding the Tamil Nadu government’s decision, for hearing in January 2021. Mining giant Vedanta Limited on Wednesday filed an appeal before the Supreme Court challenging the Madras High Court order refusing to grant permission for … (Archive) The Supreme Court on Tuesday (January 5) allowed the central vista project to go ahead. The Supreme Court on Tuesday cleared the way for Vedanta to reopen its south Indian copper smelter by refusing to stay an order from the country's environmental court. UGC Exam Guidelines 2020: Supreme Court verdict likely today. But the Apex Court in Phulchand Exports Limited v. OOO Patriot [9]expanded the scope of Section 48(2)(b). United Kingdom (UK) Supreme Court decision upholding jurisdiction and potential liability of a UK parent company in connection with alleged actions of a Zambian subsidiary company that took place in Zambia. Judgment details. The Supreme Court has clearly lost its patience with the sort of tactical challenges to jurisdiction mounted in Vedanta, litigated in contravention of Lord Templeman’s assertion in The Spiliada that jurisdiction disputes should rarely go beyond first instance, with submissions ‘measured in hours, not days’. Although it’s a jurisdictional ruling, for the first time, the UK Court held that a parent company sitting in London could be legally liable for harms allegedly caused to community members living near its subsidiary’s mining operation in Zambia. The information is updated frequently based upon the needs of our users. The government challenged the high court’s verdict on grounds that enforcement of the award was barred by limitation. In a complex judgement, the court decreed that those most affected by the proposed mine should have a decisive say in whether it goes ahead. The Court relied upon its previous decision in Bank of Baroda v. Kotak Mahindra Bank [3]to expound that since Article 136 of Limitation Act, 1963 is applicable only to decrees of a civil court in India, the enforcement of a foreign award would be covered by residuary provision i.e. The Bombay High Court  in Noy Vallesina Engineering SPA v. Jindal Drugs Limited [5] had held that since no specific period of limitation has been specified in the Arbitration Act for enforcement of a foreign award, the period of limitation of 3 years provided in Article 137 of the limitation Act would be applicable. UKSC 2017/0185. The UK Supreme Court’s recent decision in Vedanta v. Lungowe is an important read for corporate responsibility practitioners. Change ). In the meantime, the Respondent filed an application under Section 47 and 49 of the Arbitration and Conciliation Act 1996 (Arbitration Act) for the enforcement of the foreign award before the Hon’ble Delhi High Court wherein the single-judge directed the enforcement of the award and rejected the contentions of the Government of India including those pertaining to limitation and public policy. For all the latest India News, download Indian Express App. The Supreme Court on Tuesday gave its nod to the central vista redevelopment project in a 2:1 verdict. Case ID. Vedanta has indicated that it will challenge the verdict in the Supreme Court. Vedanta is incorporated and domiciled in the United Kingdom. The Supreme Court today reserved its judgement on a petition challenging the validity of the $8.5 billion Cairn-Vedanta deal and seeking a Central Bureau of Investigation (CBI) probe into it. The doctrine of public policy is a branch of common law, and just like any other branch of common law, it is governed by precedents. On 10 April 2019, the Supreme Court of the United Kingdom delivered its highly-anticipated decision in the case of Vedanta v. Lungowe (Lungowe v. Vedanta in the lower courts). It is important to mention that appeal in Okpabi has been granted following the Supreme Court’s unanimous decision in Lungowe v Vedanta “Vedanta”), another high-profile case concerning limits of the parent company liability for the acts and omissions of an overseas subsidiary. The Supreme Court refused to issue a so-called stay halting the NGT’s decision, but admitted the Tamil Nadu state’s appeal before the high court, allowing that case to proceed. The Apex Court then scrutinized whether foreign award was contrary to the Public Policy of India. The Court first settled the law regarding the period of limitation for filing an application for enforcement of a foreign award. On 10 April 2019, the UK Supreme Court gave judgment in a procedural dispute over … The Supreme Court said that the lawsuit brought by 1,800 Zambian villagers can be heard in London despite arguments by Vedanta that the case should be tried by the Zambian courts. In basic terms, the substance of the claim has nothing to do with the UK. The recent Supreme Court decision of Vedanta v Lungowe[1] is now the leading case on establishing jurisdiction in England for claims against parent companies and their subsidiaries for alleged environmental and human rights abuses of the subsidiary committed abroad. Intern: Awaiting landmark decision in UK Supreme Court on grounds that enforcement of a precise definition factored the... ) Accessible versions § Residents of Thoothukudi gathered to protest the Sterlite Copper factory in Thoothukudi to protest the Copper! Contrary to the Vedanta decision can be set Out fairly briefly damage … Konkola Vedanta... 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