In Brief
The Government of India challenged the enforcement of a foreign arbitral award in a dispute with Vedanta Limited (formerly Cairn India) over cost recovery under a petroleum exploration contract. The Supreme Court held that: (1) enforcement of foreign awards is governed by Article 137 of the Limitation Act (three-year residuary period from when the right to apply accrues), not Article 136; (2) delay in filing enforcement petitions may be condoned; (3) the tribunal's interpretation of the contractual provision on Base Development Costs was plausible and within its domain; and (4) the award did not violate India's public policy, narrowly construed. The Court affirmed enforcement, holding that the enforcement court cannot review award merits and must apply a high threshold for public policy objections.
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