Supreme Court Rules In Favour Of Reliance In Panna Mukta Arbitration

The Supreme Court allowed the plea of Reliance Industries, which sought arbitration in London over its dispute with the central government on Panna, Mukta and Tapti oil and gas fields.

A bench consisting of Justice SS Nijjar and Justice A K Sikri set aside the Delhi High Court’s decision to hear the government's plea against the arbitration proceedings in London.

It said that the high court committed a ‘jurisdictional error’ by agreeing to hear the government's plea.

In 2002, BG Exploration and Production India acquired the share capital of Enron Oil and Gas India Ltd. The production-sharing contract was to be operative for a period of 25 years, expiring in 2019.

In December 2010, differences had come up on issues of payment and reimbursement of royalties, service tax and performance audit by the Comptroller and Auditor General, following which Reliance invoked foreign arbitration clause.