
By changing the legal team representing the country in the arbitration proceedings in the Dabhol case, the UPA government suddenly finds itself on uncertain ground. Initially, the former attorney general, Soli Sorabjee, had been asked to continue representing India, even after the new government had come into office. The finance ministry, which will ultimately have to dole out the 6 billion if India should lose the case, had suggested that the earlier legal team be allowed to continue. The expenditure incurred on the work done by the earlier team would be wasted, and the replacement of solicitors would considerably increase the expenses on the litigation. More importantly, it would result in a weakening of India8217;s ability to defend the case. Despite these protests 8212; and more protests from the Maharashtra chief secretary who held that it would be unwise to change the legal team and had specifically requested that the documents given to the Central government and the legal team not be passed on to others without consent 8212; the law ministry went ahead and sacked the entire old team at the last minute.
The issue has now assumed the dimensions of a crisis because India is now not able to find a new Queen8217;s Council to represent India8217;s interests in the case. India has now asked for more time. Many solicitors have been approached but they have turned down the offer on the grounds of conflict of interest. If India loses the case it could also open up a Pandora8217;s Box in terms of other claims that could be made in similar circumstances. This is a landmark case. The cost of changing the team is not simply the higher legal expenses, which would have to be paid to the new legal team and the increase in the probability of paying out 6 billion, but also more cases like this.