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Voda arbitration case: HC seeks Centre's reply on telecom major's plea

In its appeal, the Centre has challenged the decision of the single judge permitting consolidation of two international arbitrations initiated by the company against India

Press Trust of India  |  New Delhi 

Vodafone
Vodafone

The today sought the Centre's response on a by telecom challenging an order that the high court has jurisdiction to entertain a against the initiated by the company against in connection with a tax demand of Rs 110 billion.

A bench of Justices G S Sistani and Sangita Dhingra Sehgal issued notice to the Centre on a cross-objection filed by in a pending appeal of the government against a single judge's May 7 order dismissing its against the initiated by the company.

The bench listed Vodafone's plea and the Centre's appeal for hearing on September 11.

Vodafone, represented through Anuradha Dutt, sought to set aside the findings in the May 7 order to the extent that the high court has jurisdiction to entertain government's suit against and against the company.

"Both the findings are unsustainable on facts and contrary to law," it said.

It claimed that the had erred in holding that a 'domestic court' of the host state has jurisdiction to interdict remedies availed through invocation of a (BIPA) arbitration.

In its appeal, the Centre has challenged the decision of the permitting consolidation of two international arbitrations initiated by the company against under the India-and

had initiated the arbitration proceedings under the India-UK and India-BIPA in connection with the tax demand raised against it in relation to its USD 11 billion deal to acquire the stake of

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

The Centre had contended before the that the had abused the process of law by initiating two international arbitrations.

The single judge, while dismissing the Centre's plea, had given it liberty to raise the issue of 'abuse of process' before the consolidated tribunal.

"In the present BIPA arbitration, a contractual obligation and a contractual right is involved and therefore, there is no bar as to the subject matter of the dispute or as to the jurisdiction of the court to hear the present case," the judgement had said.

The single judge had said it does not agree with the submission that the national court has no jurisdiction or should refrain from exercising its jurisdiction with regard to BIPA arbitrations.

First Published: Thu, July 05 2018. 23:28 IST