23 December, 2014
By way of an update on the Vodafone BIT claim previously reported on, the Finance Ministry of India has reportedly proposed changes to the Indian Income Tax Act’s retrospective amendment that lies at the heart of the dispute. Alternatively, the ministry is also considering issuing a circular to waive interest and penalties in all such cases. It may therefore be that an amicable resolution to this dispute may yet be possible.
Also, French firm Louis Dreyfus Armateurs (“LDA“) served a notice for arbitration against the Government of India under the 1997 Bilateral Investment Promotion and Protection Agreement between India and France. It has now been reported that the Shipping Ministry of India has appointed Singapore-based lawyer, J. Christopher Thomas QC, as its arbitrator in this dispute over the Indian Government’s alleged failure to assist in the implementation of the joint venture entered into by LDA, which they claim caused them economic loss.
For further information, please contact:
Nicholas Peacock, Partner, Herbert Smith Freehills
Alistair Henderson, Partner, Herbert Smith Freehills