NEW DELHI: The Supreme Court today’s set aside the verdict of the Delhi high court & permitted the appeal of Reliance Industries holding that the conflicts between it & the Union Government over the Panna-Mukta and Tapti gas fields will be arbitrated in London.
The apex court also stated that the mediation will be as per to substantive rules of India. Though, the appeals, if any, will also be heard in English courts.
Mukesh Ambani’s RIL had suggested that the parties had decided that the location for mediation would be London & Uncitral Rules 1976 will be followed. The central govt had objected to mediation in London, & was adament that it should be in Indian. The great judge approved the perspective of the Secretary of state for Petroleum and Natural Gas in its choice last year, which has now been overturned.
There are some 8 disputes over the production sharing agreement about the gas fields on the western coast, discovered in 1992. They include royalty and taxes, cost recovery limit & removal of arbitrator. Some awards have already been passed by the arbitrator in England.
The verdict delivered by a bench made up of Justice S S Nijjar & Rights A K Sikri ruled that the high court had no authority to amuse the case of the govt & it was not maintainable there as per to the Mediation and Conciliation Act. Thus they have approved most of the essential contentions of Reliance Industries.
The oil ministry had entered into 2 production sharing agreements with Reliance, BG Exploration & Production India & ONGC. The agreements were to be operative for 25 years.
An international arbitrator had instructed the govt this 2012 to reimburse Reliance & BG Exploration to the track of $11,413,172 apart from extra cess retrieved from them.
EPC World News Bureau
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