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AgustaWestland case: Delhi HC to hear Defence Ministry's side against arbitration

ANI  |  New Delhi [India] 

The Delhi on Wednesday agreed to hear the Ministry of Defence's application regarding the proceedings in the case.

The court was hearing proceedings going on between and the

Representing the Defence Ministry, alleged before the court that there are several criminal proceedings going on against due to which proceedings can't be allowed to go on.

However, the court stated that the issue requires further consideration, and asked AgustaWestland to file a reply within three weeks. It allotted two weeks' time to the to file rejoinder and affidavits.

has been advised that the court would like to go in the merits of the case since the offences involved are criminal in nature.

had sought a permanent injunction order to restrain AgustaWestland from continuing with the process due to the ongoing criminal cases before the trial court.

AgustaWestland had initiated the arbitration proceedings. It mentioned that the cannot unilaterally freeze payments in the Rs 3,600-crore deal.

Anand also submitted that arbitral proceedings deserve to be stayed as the mandate of the stands terminated in accordance with Section 29A of the Arbitration and Conciliation Act, 1996.

She further stated that the allegations raised with respect to the entire transaction as also the allegations of corruption, fraud, and bribery cannot be gone into by the Arbitral Tribunal, and hence the disputes -- not being arbitrable -- the arbitral proceedings deserve to be stayed.

Arun Kathpalia, Senior appearing for AgustaWestland, stated that the present case is not governed by the provisions of Section 29A of the Act, inasmuch as the arbitral proceedings had commenced much prior to the Amendment Act of 2015 coming into force.

The case will next be heard on February 28.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 18:10 IST