High Court dismisses govt plea to enforce arbitral award against RIL

The Delhi High Court has dismissed the government’s petition seeking enforcement of a 2016 final partial award (FPA) of an arbitral tribunal, in a dispute with Reliance Industries over cost recovery provisions and reimbursement of royalties and taxes related to the Panna, Mukta and Tapti gas fields.

The high court rejected the petition holding it to be “premature and not maintainable”. The 2016 FPA is “not an executable arbitral award” as it does not award any amount to the government, it said in the order on Friday.

Reliance and Shell-owned BG Exploration & Production India had in December 2010 dragged the government to arbitration over cost recovery provisions, profit due to the government and also statutory dues including royalty payable.