AgustaWestland: Delhi HC agrees to hear govt’s case against arbitration

New Delhi, Jan 9: The Delhi High Court has agreed to hear an application by the Ministry of Defence against the arbitration proceedings in the AgustaWestland case. The court has asked both parties to file an affidavit within five weeks.

The government had moved the Delhi High court seeking a permanent injunction to restrain AgustaWestland from continuing with the arbitration process in view of the ongoing criminal cases before the trial court.

The court had on Tuesday refused to give any interim order staying the proceedings before the Arbitration Tribunal, initiated by AgustaWestland International Limited.

The company contended that the Ministry of Defence cannot unilaterally freeze payments in the Rs 3,600 crore deal. India has already paid 30 per cent of the amount. Initially the government had refused to be drawn into the arbitration process, but later decided to take part in it in January 2014.

The Delhi HC said that it could not pass any interim order unless it heard the other party as well. The petitioners must first serve a copy to to AgustaWestland, the court further said.