Indian Court Refuses Injunction Restraining Vodafone’s Second BIT Arbitration Against India

Delhi High Court refuses to grant injunction restraining Vodafone’s second BIT arbitration against India

Herbert Smith Freehills review a decision dated 7 May 2018, where the Delhi High Court dismissed the Government of India’s application to declare Vodafone’s second BIT arbitration proceedings in relation to the retrospective tax liability imposed on Vodafone’s 2007 acquisition of Hutchison Whampoa’s Indian operations an abuse of process, and in so doing declined to grant a permanent injunction. The authors observe that the decision is an interesting and positive one underlining a continuing trend of pro-arbitration outcomes from the senior Indian courts and that in declining to decide the issue of abuse of process and passing that decision to the relevant arbitral tribunal, the Delhi court has affirmed its support for the kompetenz-kompetenz principle in international arbitration, and resisted the invitation to place its judgment before that of the tribunal.

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About Phillip Rompotis

Phillip practices as a barrister and arbitrator in Hong Kong. He has over 25 years’ litigation and arbitration experience in commercial disputes relating to construction & engineering, financial services, joint venture & shareholders agreements, technology, trusts, property and landlord & tenant. He is a Fellow of the Chartered Institute of Arbitrators, the Singapore Institute of Arbitrators, the Malaysian Institute of Arbitrators, and a member of various lists/panels of arbitrators.

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