Delhi HC overturns arbitration award favouring Reliance in KG Basin dispute
1 month, 1 week ago

Delhi HC overturns arbitration award favouring Reliance in KG Basin dispute

The Hindu  

In a setback for Reliance Industries Limited, the Delhi High Court on Friday overturned a 2018 international arbitral award which favoured the Mukesh Ambani-led company and its foreign partners in a dispute over gas migration from fields operated by State-owned Oil and Natural Gas Corporation in the Krishna Godavari basin. Acting on an appeal filed by the Central government, Justice Rekha Palli and Justice Saurabh Banerjee said, “We have found ‘patent illegality’ on the face of the Arbitral Award worthy of interference by us “. In the 79-page judgment, the bench said, “We have no alternative but to set aside the impugned order passed by the learned Single Judge along with the Arbitral Award rendered by the learned AT ”. “Relevantly, RIL in the light of the said breach not only did it succeed in extraction of huge amounts of ‘Migrated Gas’ belonging to the ONGC Block, but also, was enriched from the profits thereof at the cost of causing losses to the public exchequer, moreover, since the commodity at hand was/ is a vital natural resource belonging to the UOI as a trustee, in the public interest of the people of this Country,” the court said.

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