NEW DELHI, Nov. 2 -- The Supreme Court on Monday dismissed the Union government's appeal against a Delhi high court order allowing Vedanta Ltd and Ravva Oil (Singapore) Pvt Ltd to enforce foreign arbitration awards involving claims of $99 million, criticising the Centre for resisting enforcement of awards that date back more than two decades and warning that such litigation could undermine confidence in India's arbitration regime.

A bench of justices JB Pardiwala and Manmohan questioned the government's approach to arbitration, asking why it was frustrating enforcement of an arbitral award even after the dispute had been adjudicated by foreign courts. The bench also questioned the Centre's commitment to promoting arbitration as an effect...