Delhi HC to Centre: Pay ₹14-cr arbitral award to Panacea Biotech

The Delhi High Court on Friday directed the Centre to release an arbitral award of over ₹14 crore along with interest to Panacea Biotech which is manufacturing Covid-19 vaccine — Sputnik V — in collaboration with Russian Direct Investment Fund (RDIF).

While ordering the release of the award, a bench of Justices Manmohan and Najmi Waziri expressed anguish over the vaccine shortage even as the Central government says the best way to fight the pandemic is to vaccinate the entire population.

Court feels anguished
“Today, we are a bit anguished with the way things have transpired during the second wave. As a responsible citizen you also would be anguished. Vaccine shortage is hitting each and everyone. Even today, vaccines are not available in Delhi…You have good products in India, a little hand holding will work,” the bench said.

It added that someone from Russia has been able to locate infrastructure in Himachal Pradesh but the Centre has failed to do so.

The High Court’s remarks came on a plea by the Delhi-based Panacea Biotech seeking to modify a July 2020 order, by which the firm had undertaken not to prosecute further the proceedings instituted by them in relation to an arbitral award, running into crores of rupees in its favour against the Centre.

The company, in its fresh application, sought release of the arbitral award saying it needs funds at the earliest in the larger interest of humanity as it has already manufactured trial batches of Covid vaccine Sputnik V in collaboration with RDIF and the process of manufacturing scale-up batches is on.

The Court directed the Centre to release the arbitral award of over ₹14 crore along with interest from 2012 to Panacea Biotec for manufacturing Sputnik V vaccine in India subject to the condition that the company obtains permission from the Government to manufacture the vaccine. The Court also said the release of the amount, awarded to the company by the arbitral tribunal, will also be subject to the undertaking of the firm that 20 per cent of its sale proceeds of Sputnik V will be deposited with the court’s registry till the awarded amount is secured. The Hindu BusinessLine