The governing law and scope of intervention in arbitration proceedings hinge on the seat of arbitration; courts may intervene only when significant procedural errors occur.

[1] This is an appeal by the appellant against the decision of the Court of Appeal which had on 15 September 2009 decided in favour of the respondents.

[2] The facts of this case have been succinctly dealt with in the two separate judgments of the Court of Appeal. (See Cairn Energy India Pte Ltd & Anor v. The Goverment of India, 2009 MarsdenLR 4331 ). As such we will only make reference to the relevant facts and chronology for purposes of clarity in this judgment.

[3] The core of the dispute is related to an oil and gas joint venture. The appellant had entered into a joint venture with several private companies, including both respondents. The respondents were involved in the development of an area described as "Ravva Field" which is situated off the coast of India. A production sharing contract ("PSC") was entered into by the parties to this effect.

[4] The salient provisions of the PSC read:

"Article 3

...

3. 3 ONGC Carry

In considerationof ONGC having paid the Past Costs, the companies covenant to ONGC that they shall:

(a) during the Transfer Period, pay the share of Exploration Costs, Development Costs and Production Costs incurred by the Operator; and

(b) after the Transfer Period, pay the share of Contract Costs,

that wouldotherwise be payable by ONGC, in the proportion that their respective ParticipatingInterests bear to their total Participating Interests, until such time as theamount paid by the Companies pursuant to this art 3. 3 equals the amount that isequivalent to the Companies total Participating Interest share of the differencebetween Past Costs and Transfer Period Net Revenue PROVIDED THAT the Companiesobligations under this art 3. 3 shall not exceed the sum of thirty three millionUSDollars (US$33 million) less an amount equivalent to the Companies total ParticipatingInterest share of Transfer Period Net Revenue to which but for art 7. 5(c) theCompanies would otherwise be entitled. Thereafter, Contract Cost shall be borneand paid by the Companies and ONGC in proportion to their Participating Interest.

...

Article 15

Recovery Of Costs For Oil And Gas

15. 1 ContractorEntitled to Recover Contract Costs and Past Costs

The contractorshall be entitled to 100% of the total volumes of Petroleum produced and savedfrom the Contract Area in accordance with the provisions of this Article untilthe value of such Petroleum entitlement, after deduction of all applicable leviesincluding all Royalty and Cess paid in respect of Petroleum produced and savedfrom the Contract Area, is equal to Contract Costs together with Past Costs. Forthe avoidance of doubt, it is agreed that Past Costs shall not exceed the sumof fifty five million USDollars (US$ 55 million) for the purposes of cost recovery.

Article 16

ProductionSharing Of Petroleum Between Contractor And Government

16. 1 ProfitPetroleum Determined by PTRR Method

(a) The contractorand the Government shall share in the Profit Petroleum from the Contract Areain accordance with the provisions of this articles.

(b) The shareof Profit Petroleum, in any Year, shall be calculated for the Contract Area onthe basis of the Post Tax Rate of Return actually achieved by the companies atthe end of the preceding Year for the Contract Area as provided in Appendix D.

...

Appendix D

(Articles 16. 4)

CalculationOf The Post Tax Rate Of Return For Production Sharing Purposes

1. In accordancewith the provisions of ar