The Supreme Court has decided to hear this week the petition of the Center testing an order of Delhi HC requesting it to take part in the dual negotiation proceedings. This proceeding was started by Vodafone after a tax order of Rs 11,000 Crore via a retrospective amendment of tax law post the government lost a lawful fight in 2012 in the SC.
Maninder Singh, the additional solicitor general, told a panel guided by Dipak Misra, the Chief Justice, that Vodafone had first started adjudication in April 2012 in opposition to the government citing the India-Netherlands BIPA (Bilateral Investment Protection Agreement).
Singh claimed, “While adjudication proceedings organized below the India-Netherlands BIPA were still in progress, Vodafone Consolidated Holdings and Vodafone Group Plc., both being arms from the similar corporate vertical as VIHBV (Vodafone International Holdings BV), served a notice of argument on the Union government below the India-UK BIPA for declaration of a suspected argument that was previously below arbitration before the arbitral court comprised below the India-Netherlands BIPA.”
The panel decided to settle on urgent hearing to the appeal. The Center complained that it had shifted the Delhi HC inquiring the 2nd adjudication proceedings below India-UK BIPA at the time of the pendency of the argument below the India-Netherlands BIPA. It claimed that the HC had originally limited Vodafone from carrying out any action below the India-UK BIPA but afterward instructed that parties were open to take part for appointment in the proceedings of a presiding judge below the India-UK BIPA”. This might lead to concurrent proceedings on similar argument lifted by Vodafone in opposition to the government prior to 2 different arbitral courts, the Centre claimed.
In October 2010, the tax department had taken VIHBV in custody to be an “assessee-in-default” for its breakdown to subtract tax as needed below the I-T Act Section 195.