How the general press are making headlines out of this story... In early October, AW invoked a clause which they believed (from their advisors' reading of the contract, presumably) started the arbitration process due to deadlock between the two contracting parties.
The Indians then
reportedly issued a show-cause notice to AW for cancelling the deal (Nothing from AW at that time said they had any intention of cancelling).
Today's press release from Indian Gov't (full text below) basically says that they have cancelled the deal and appointed an arbitrator. We could get lost in the Indian way of expressing things here, but haven't the Indians just agreed to appoint an arbitrator to sort out the "dispute"?
QUOTE from
here .... (and the spelling is theirs, not mine!)
VVIP Choper Agreement with AgustaWestLand International Ltd. (AWIL) Terminated
The Government of India has terminated with immediate effect the Agreement that was signed with M/s. AgustaWestLand International Ltd. (AWIL) on 08 February, 2010 for the supply of 12 VVIP/VIP helicopters on grounds of breach of the Pre-contract Integrity Pact (PCIP) and the Agreement by AWIL.
Based on the opinion received earlier from the Attorney General of India, it has been the view of the Government that integrity-related issues are not subject to arbitration. However, AWIL has since pressed for arbitration and appointed an arbitrator from its side. In view of this, MoD sought afresh the opinion of the Attorney General. With a view to safeguard the interests of the Government, MoD has nominated Hon’ble Mr Justice BP Jeevan Reddy as its arbitrator.