New Delhi, Oct 23 The English Court of Appeal has dismissed an appeal by the Republic of India challenging an arbitral tribunal’s jurisdiction over a dispute brought by Ras Al Khaimah Investment Authority (RAKIA) in relation to the setting up of an aluminium plant in Andhra Pradesh.
RAKIA initiated international arbitration against India under the India-UAE Bilateral Investment Treaty after the Andhra Pradesh government cancelled a bauxite supply agreement.
The arbitral tribunal initially ruled in May 2022 that it lacked jurisdiction to hear RAKIA’s claims. RAKIA successfully challenged the award under Section 67 of the Arbitration Act 1996, with the English High Court ruling in June 2025 that the tribunal did have jurisdiction.
India appealed the High Court’s decision, arguing that the executive cancellation of the raw material supply contract did not apply “directly” to RAKIA’s shareholding investment.
The Court of Appeal on October 22 held that executive action cancelling a bauxite supply agreement could apply directly to a foreign investor’s shareholding in an Indian company.
“That Investment was in a company formed to establish an alumina and aluminium industry in Andhra Pradesh, exploiting local deposits of bauxite. The executive actions in question directly applied to it, ending the availability of the primary supply of bauxite and leading to the termination of the contract by which it was to be supplied,” the Court of Appeal said.
The Andhra Pradesh government had cancelled the Bauxite Supply Agreement (BSA) originally signed between the Andhra Pradesh Mineral Development Corporation (APMDC) and ANRAK Aluminium Limited, a joint venture involving UAE-based RAKIA and India-based Penna Group.
The Court of Appeal has now upheld the High Court’s ruling and rejected India’s appeal on both grounds. It found that the Andhra Pradesh government’s actions applied directly to RAKIA’s investment under the India-UAE Bilateral Investment Treaty.
(PTI News)
