AgustaWestland: Govt moves HC to stall arbitration proceedings

New Delhi, Jan 9: The Government has 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 however 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 AgustaWestland, the court further said.

When the court was told that the arbitration is scheduled for 11 am on Wednesday, the judge said that the matter would be heard as the first item on January 9 at 10.30 am.