Supreme Court will otoday pronounce its verdict on the petitions challenging the validity of the Centre's plan to redevelop Central Vista project. Case Comment: Vedanta Resources Plc & Anor v Lungowe & Ors [2019] UKSC 20. The decision, delivered by Lord Briggs, is less clear than could be hoped. In Indian jurisprudence, the issue pertaining to the ambit and development of “public policy” came before the Apex Court in Renusagar Power v. General Electric Co.[8] The Court in this case ruled that the defence of public policy should be construed narrowly and should be permissible with respect to a foreign award only if award is contrary to (i) fundamental policy of Indian; (ii) the interest of India; (iii) justice or morality. The case dates back to September 2015, when approximately 2,000 Zambian … The Tamil Nadu State Pollution Control Board (TNPCB) shut down Vedanta’s Sterlite copper plant in Thoothukudi in 2018, citing violations of environmental laws. The Indian government challenged the award in the Malaysian High Court on the grounds of public policy. A three-judge bench headed by Justice Rohinton Fali Nariman posted the case for a detailed hearing for January, 2021. * The moderation of comments is automated and not cleared manually by, Copyright © 2021 The Indian Express [P] Ltd. All Rights Reserved, Thoothukudi copper plant: No immediate SC relief for Vedanta, Vedanta’s unit Sterlite Industries, which owns the plant in Tuticorin, produced 4.08 lakh tonnes of copper in 2017-18, which dropped to 89,700 tonnes in 2018-19 following the closure, according to a note by CARE Ratings. "The doctrine of … 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. 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. On August 18, the Madras High Court dismissed a plea by the company seeking the smelter's reopening. Lava's Z phones can customised, upgraded: How will it work? 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. The Supreme Court has handed down a significant judgment in Vedanta Resources Plc and Konkola Copper Mines Plc v Lungowe and Ors, finding an arguable case that the UK parent could be liable for the operations of its overseas subsidiary. 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. 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. Change ), You are commenting using your Facebook account. 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 basic terms, the substance of the claim has nothing to do with the UK. 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. In a blow to Vedanta Limited, the Supreme Court of India refused to allow it to reopen the Sterlite Copper factory in Thoothukudi. 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. Though the decision of the Supreme Court in NAFED v. Alimenta took an unprecedented overturn by unnecessarily transgressing the permissible degree of interference in enforcing a foreign award, the Supreme Court in present case by reaffirming the narrow approach enunciated in Renusagar[13] has once again fortified a pro-enforcement approach. KCM was … In view of the foregoing, the Supreme Court’s decision in Vedanta is a welcome ruling. Paul Sheridan, Jan Burgess and Laura Swithinbank, who work within the Environment and Health and Safety teams at CMS, comment on the decision handed down in the matter of Vedanta Resources Plc & Anor v Lungowe & Ors [2019] UKSC 20. Alimenta. The Supreme Court was asked to deal with a number of questions relating to both the substantive legal basis for the claim, and jurisdiction. 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. 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. On 10 April 2019, the UK Supreme Court gave judgment in a procedural dispute over … 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). The Supreme Court upheld the decisions of the Technology and Construction Court and the Court of Appeal that: 1. there was a real issue to be tried against the second Defendant/Appellant ("Vedanta"), the parent company of the directly involved first Defendant/Appellant ("KCM"); 2. 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. 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 . 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. In December 2018, the National Green Tribunal (NGT) allowed the reopening of the plant, but this was set aside by the Supreme Court, which said the NGT did not have the jurisdiction, more so when an appeal was pending before the appellate authority. Neutral citation number [2019] UKSC 20. UGC Exam Guidelines 2020: Supreme Court verdict likely today. 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Learn how your comment data is processed. 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. Views expressed on this blog are strictly personal and attributable solely to the author(s). In view of this pro-enforcement approach, Section 48 (2) (b) does not permit a review on the merit of the foreign award. 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. This is especially paramount since the legislature has consciously made amendments in recent years to provide more relaxations for international commercial arbitration ( e.g. The Indian Express is now on Telegram. [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. 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. Aggrieved, the Government of India filed an appeal before the Apex Court. This site uses Akismet to reduce spam. A local court also rejected Vedanta’s plea in August. On May 29, 2019. Change ), You are commenting using your Twitter account. Although every effort is made to maintain accurate information on this site, the Michigan Supreme Court does not guarantee the accuracy of … Change ). Daniel Vollmer, IBAHRI intern. The Supreme Court unanimously decided the case should proceed in English courts, dismissing the appellants’ arguments against English courts assuming jurisdiction. The judgment is thus a step in the right direction to bring Indian arbitration law in conformity with international jurisprudence. ( Log Out /  56 The Court’s frustration was palpable in Lord Briggs’ irritated rebuke to the defendants for ‘ignoring’ the well-known warnings … On 10 April 2019, the UK Supreme Court handed down its judgment in Vedanta Resources PLC and anor. Any exceptions to Article 4.1 are to … ), [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. Tamil Nadu … The UK Supreme Court's (UKSC) recent, landmark judgment in Vedanta Resources PLC and anor. 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 jurisdiction arguments . In reaching its decision, the Supreme Court extensively reviewed merits of the case and terms of the contract, something which the Indian Courts have repeatedly laid down is not permissible within the scope of Section 48(2)(b). 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. Extend your support to India's legal leaders of tomorrow. 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. defendant Vedanta Resources plc (“Vedanta”) is the ultimate parent company of KCM. In December, India`s National Green Tribunal (NGT) revoked the state decision to shut the plant leading Tamil Nadu to appeal the NGT ruling. 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. Vedanta Resources PLC and Another v. Lungowe and Others. UKSC 2017/0185. India, being a signatory to New York Convention, follows the approach of refusal to enforce an award on the public policy ground only if the award is so fundamentally offensive to the jurisdiction of the enforcement court’s notions of justice and morality. Justices. Lord Wilson, Lord Hodge, Lady Black, Lord Briggs. 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. Konkola and Vedanta then appealed to the Supreme Court. The information is updated frequently based upon the needs of our users. Following this, the state government ordered the permanent closure of the plant. By its very nature, ‘public policy’ is not capable of a precise definition. Now that the Supreme Court has decided that the case can proceed in the English courts in relation to both Vedanta Resources and KCM, the parties can proceed to a full trial of the issues. 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. 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. Judgment (Accessible PDF) ], Government of India v. Vedanta Limited: Supreme Court fortifies pro-enforcement approach, clarifies limitation period. 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. 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 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’. This post looks at how the law has changed and how responsible businesses can respond, reducing human rights risk to affected communities while also minimising legal risk. 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. Tuesday April 30, 2019. 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 … However, few positives have already been factored in the market in last 10 trading sessions. [This guest post is authored by Dhriti Mehta and Donika Wahi. Article 137 of Limitation Act, which prescribes a period of three years from when the right to apply accrues. 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. 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 … Lady Hale. Anger against the company and the government is still palpable in this southern coastal town. On Wednesday, the Supreme Court declined to offer Vedanta Sterlite interim relief, refusing the mining giant’s appeal for the immediate reopening of its Thoothukudi copper plant. This landmark judgment from the UK Supreme Court means that the claim brought by 1,826 Zambian villagers against UK-based Vedanta and its Zambian subsidiary KCM can proceed to a trial of the substantive issues in the English courts. 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. 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. Moreover, the court declined to order status quo until Vedanta moved the Supreme Court for recourse. Monday 25 March 2019. The Apex Court then scrutinized whether foreign award was contrary to the Public Policy of India. Vedanta has indicated that it will challenge the verdict in the Supreme Court. Judgment (PDF) Press summary (PDF) Accessible versions. 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 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. 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 … 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 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. Vedanta Resources PLC and another (Appellants) v Lungowe and others (Respondents) Judgment date. 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. 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. Although Vedanta … For all the latest India News, download Indian Express App. 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. 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. However, few positives have already been factored in the market in last 10 trading sessions. Background. 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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