VIDEOCON INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) Whether the Delhi High Court could entertain the petition filed by the Respondents under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, "the Act") for grant of a declaration that Kuala Lumpur (Malaysia) is contractual and juridical seat of arbitration and for issue of a direction to the arbitral tribunal to continue the hearing at Kuala Lumpur in terms of Clause 34 of Production Sharing Contract (PSC) is the question which arises for consideration in this appeal

(3.) Respondent No. 1 - Government of India owns petroleum resources within the area of Indias territorial waters and exclusive economic zones. Respondent No. 2 is an arm of the Ministry of Petroleum and Natural Gas. On 28.10.1994, a PSC was executed between Respondent No. 1 on the one hand and a consortium of four companies consisting of Oil and Natural Gas Corporation Limited, Videocon Petroleum Limited, Command Petroleum (India) Private Limited and Ravva Oil (Singapore) Private Limited (hereinafter referred to as "the Contractor") in terms of which the latter was granted an exploration licence and mining lease to explore and produce the hydro carbon resources owned by Respondent No. 1. Subsequently, Cairn Energy U.K. was substituted in place of Command Petroleum (India) Private Limited and the name of the Videocon Petroleum Limited was changed to Petrocon India Limited, which merged the Appellant - Videocon Industries Limited. For the sake of convenience, the relevant clauses of Articles 33, 34 and 35 of the PSC are extracted below: