Alerts & Updates 29th Aug 2018
In this week’s update, we examine the decision of the Hon’ble Delhi High Court concerning two treaty arbitration invoked against Government of India under the India-Netherlands and India-United Kingdom bilateral investment treaty.
In Union of India v. Vodafone Group PLC United Kingdom & Anr.[1], the court dismissed the suit filed by the Union of India through which it sought a permanent injunction on the second arbitration invoked by Vodafone under the India-United Kingdom BIT. The treaty arbitrations which have been initiated by Vodafone, find their roots in a tax demand made by the Indian Income Tax department against Vodafone. Besides the arguments advanced on behalf of Vodafone and the Union of India, the court also appointed an amicus curiae for assisting the court on the law concerning BIT arbitrations. The court heard both the parties and the amicus curiae at length while also placing reliance on various other awards and decisions of courts, in matters concerning an investor treaty. The court dismissed the suit and refused to grant a permanent injunction while recording that the Union of India was at liberty to raise its pivotal issue of ‘abuse of process’ before the tribunal constituted under the India-United Kingdom BIT.