New Delhi: The Supreme Court on Monday appointed a former chief justice of New South Wales in Australia as the third and final arbitrator for resolution of the dispute between Reliance Industries Ltd and the Indian government over recovery of cost for developing the country’s key natural gas field in KG basin, as per the arbitration agreement between the two parties.
A bench headed by Justice S.S. Nijjar allowed the plea of RIL for appointing an international arbitrator so as to remove any bias. The Mukesh Ambani-led Reliance Industries had commenced arbitration against the government on 23 November 2011.
The court had in January asked RIL and the Centre to propose names of persons — both Indian and foreign nationals — who could be considered for the appointment.
The bench had chosen to first decide the issue whether an Indian or a foreign national was to be appointed as the presiding arbitrator, and then consider the names proposed by the rival parties.
Reliance Industries had moved the apex court for appointment of an arbitrator from a foreign country, with which parties in disputes are not connected, after the Centre had declined the proposal. RIL has nominated former Chief Justice of India S.P. Bharucha as its arbitrator while the Centre chose ex-CJI VN Khare as its nominee.
