Mumbai- In a decisive move, the central government has lodged a petition challenging a recent Delhi High Court judgment that favored Reliance Industries Ltd (RIL) in an ongoing gas dispute centered in the Krishna Godavari Basin.
A division bench of the esteemed Delhi High Court has graciously accepted the government’s plea, setting a hearing date for the matter on 12th February. As part of this legal process, the court has summoned RIL to provide a response, marking a pivotal turn in this long-standing dispute.
The origins of this dispute date back to 2013 when the state-owned Oil and Natural Gas Corp. (ONGC) Ltd brought forth allegations of ‘lateral continuity’ in gas reserves between the Reliance block and adjacent ONGC-allocated blocks. This implied a potential connection and gas migration between these two sectors.
Following verification by an independent consultant, the Ministry of Petroleum and Natural Gas sought a substantial $1.55 billion from RIL. Subsequently, RIL initiated arbitration proceedings, which culminated in a favorable decision in 2018.
Notably, in May of this year, a high court bench led by Justice Anup Jairam Bhambhani upheld the 2018 arbitral tribunal’s ruling, asserting that the tribunal’s perspective was a legitimate one, warranting no interference.
This development adds another layer of complexity to an already intricate legal saga, as both parties continue to pursue their respective interests in this high-stakes dispute.
