Delhi High Court - Orders
Vedanta Limited & Anr vs Government Of India, Through Jt. ... on 14 January, 2019
Author: Rajiv Shakdher
Bench: Rajiv Shakdher
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(EFA)(COMM.) 5/2017
VEDANTA LIMITED & ANR. ..... Decree Holder
Through Mr. Akhil Sibal, Sr. Adv. with Mr.
Aashish Gupta, Mr. Arjun Pall, Mr.
Anirudh Lekhi and Mr. Parinay
Vasandani, Advs.
versus
GOVERNMENT OF INDIA, THROUGH
JT. SECRETARY, MINISTRY OF PETROLEUM
AND NATURAL GAS ..... Judgment Debtor
Through Ms. Maninder Acharya, ASG with
Mr. Anurag Ahluwalia, CGSC, Mr.
R.S. Prabhu, Mr. Sahil Sood, Mr.
Viplav Acharya and Mr. Harshul
Choudhary, Advs. for UOI.
Mr. K.R. Sasiprabhu with Mr. Tushar
Bhardwaj, Advs. for GOI.
CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
ORDER
% 14.01.2019 I.A. No.262/2019
1. Notice in this application was issued on 10.1.2019. Liberty was granted to the non-applicant/judgment debtor to file its reply. No reply has been filed.
2. The substantive prayer made in this application is as follows:
"a. Permit the Applicant to seek release of INR 37,34,35,623.60 (Indian Rupees thirty seven crores thirty four lakhs thirty five thousand six hundred and twenty three and sixty paise only) deposited by Chennai Petroleum Corporation Limited with this Hon'ble Court against submission of bank O.M.P.(EFA)(COMM.) No.5/2017 Pg.1 of 3 guarantee dated 4 January 2019 issued by ICICI Bank Limited (Commercial Banking Branch, Solitaire Plaza, M.G. Road, Gurugram) and bearing number 0544BGRO184919 for an amount of INR 37,34,35,623.60 (Indian Rupees thirty seven crores thirty four lakhs thirty five thousand six hundred and twenty three and sixty paise only);"
3. Ms. Acharya, learned ASG, says that she has instruction to the effect that the amount mentioned in the prayer clause (a) of the application is correct.
4. Accordingly, the prayer made in the application is allowed.
5. It is made clear that in case the applicant/decree holder were to be unsuccessful in the main proceedings, it will bring back the money released to it upon a direction being issued in that behalf by this Court with suitable interest as directed.
6. I may indicate that vide order dated 17.12.2018, I had directed the release of certain amounts to the applicant, inter alia, based on a condition that the same would re-deposited if an order to that effect is passed by this Court with simple interest at the rate of 9% per annum.
7. Mr. Sibal, learned Senior Counsel, who, appears for the applicant/decree holder, draws my attention to Clause 1.7.3 of Para 1.7 of the Production Sharing Contract. It is his contention that the rate of interest mentioned therein ought to be applicable, that is, interest should not exceed Libor plus 2%.
8. I am, prima facie, of the view that since moneys have been released in INR, interest rate of 9% p.a. (simple) seems appropriate. However, the O.M.P.(EFA)(COMM.) No.5/2017 Pg.2 of 3 applicant can, if necessary, address arguments in that behalf at the appropriate stage.
9. Furthermore, an affidavit of undertaking in terms of para 5 above will be filed by the applicant within five days from today. Upon fulfilment of the conditions of release of deposited amount, which includes the aforementioned undertaking and furnishing of a bank guarantee of an equivalent amount as set out in the prayer clause (a) extracted hereinabove, the Registry will release the money.
10. Needless to say, an unconditional and irrevocable bank guarantee will be will be furnished in the name of the Registrar General of this Court. The applicant shall ensure that the bank guarantee is kept alive till further orders of the Court.
11. The captioned application is disposed of in the aforementioned terms.
RAJIV SHAKDHER, J
JANUARY 14, 2019/pmc
O.M.P.(EFA)(COMM.) No.5/2017 Pg.3 of 3