Union of India v Reliance Industries Limited & Anor

Union of India v Reliance Industries Limited & Anor

The Tribunal's application of the Henderson v Henderson principle as a procedural rule under English law was correct given the seat of arbitration in London. The Government's threshold matters/objections, including Indian constitutional arguments, were barred by res judicata and abuse of process. The Tribunal did not commit a serious procedural irregularity nor violate public policy.

Parties
Applicant/respondent in the Arbitration: Union of India; Respondent/claimant in the Arbitration: Reliance Industries Limited; Respondent/claimant in the Arbitration: BG Exploration and Production India Limited
Jurisdiction
England and Wales
Judgment Date
09 June 2022
Procedural Posture
Arbitration Challenge / Judgment on Applications Under Sections 68 and 69 of the Arbitration Act 1996
Outcome
Applications refused
Legal Topics
Res Judicata, Procedural Law Vs Substantive Law, Public Policy, Indian Constitutional Law, Cost Recovery in Production Sharing Contracts
Arbitration Commercial Law Conflict of Laws Res Judicata Procedural Law Vs Substantive Law Public Policy Indian Constitutional Law Cost Recovery in Production Sharing Contracts

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Parties

Union of India

Applicant/respondent in the Arbitration

Reliance Industries Limited

Respondent/claimant in the Arbitration

BG Exploration and Production India Limited

Respondent/claimant in the Arbitration

Procedural Posture

Arbitration Challenge / Judgment on Applications Under Sections 68 and 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether the Tribunal was correct to determine res judicata according to English law due to the seat of arbitration being London
  2. 2 Whether the Henderson v Henderson principle applies to earlier phases in the same arbitration
  3. 3 Whether the Tribunal failed to deal with Indian constitutional threshold matters/objections

Ratio Decidendi

The Tribunal's application of the Henderson v Henderson principle as a procedural rule under English law was correct given the seat of arbitration in London. The Government's threshold matters/objections, including Indian constitutional arguments, were barred by res judicata and abuse of process. The Tribunal did not commit a serious procedural irregularity nor violate public policy.

Court Disposition

Applications refused

Orders

  • Leave to appeal under section 69 of the Arbitration Act 1996 refused
  • Section 68 challenge dismissed