Reliance Welcomes Appointment Of The Presiding Arbitrator (English) - Reliance Industries Ltd.

The Supreme Court today picked Michael Hudson McHugh of Australia as the third member of the arbitration tribunal in the KG-D6 dispute. Justice McHugh will head the tribunal. He is a former judge of the high court of Australia and served there from 1989 to 2005. He is an expert in international law.

Former chief justices of India, Justice S P Bharucha and Justice V N Khare....nominated respectively by Reliance Industries and the Government of India...complete the three-member tribunal.

The dispute arose when the gas production from KG-D6 fell short of estimates. Following this the government sought to disallow costs incurred on D1-D3 fields of KG-D6.

As per the Production Sharing Contract, any dispute would have to be referred to a three-member arbitration tribunal. Each party would nominate one member of their choice and the third would be picked jointly by the two members so appointed.

The two judges nominate by Reliance Industries and the government were unable to reach consensus on the third member. This prompted Reliance Industries to approach the Supreme Court for appointment of the third member.

The KG-D6 block is a joint venture between three companies. RIL is the majority partner with 60 percent, BP with 30 percent and NIKO with 10 percent. Reliance had suggested that since companies from India, United Kingdom and Canada are involved, the third member and head of the tribunal should be an expert in international law from a neutral country.

Now that this very complex issue has gone to a tribunal consisting of two respected former Indian chief justices and another reputed Australian jurist, we hope the rabble rousing around this issue will be given a decent burial.

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