RELIANCE INDUSTRIES LTD. & ORS. versus UNION OF INDIA

RELIANCE INDUSTRIES LTD. & ORS. versus UNION OF INDIA

The arbitration qualifies as an International Commercial Arbitration given the foreign parties to the PSC and operations. The Chief Justice of India is not confined to appointing a third arbitrator of Indian nationality; neutrality and impartiality are paramount, and UNCITRAL principles may be considered. The appointment of a neutral arbitrator, not proposed by either party, is appropriate to maintain independence.

Parties
Petitioner: Reliance Industries Ltd.; Respondent: Union of India; Petitioner: Petitioner No. 2 (foreign company); Petitioner: Petitioner No. 3 (foreign company)
Jurisdiction
India
Judgment Date
31 March 2014
Procedural Posture
Arbitration Petition / Petition for Appointment of Third Arbitrator Under S. 11(6) Arbitration & Conciliation Act
Outcome
Arbitration Petition allowed.
Legal Topics
Appointment of Arbitrator, International Commercial Arbitration, Neutrality and Impartiality of Arbitrators
Arbitration International Commercial Law Appointment of Arbitrator International Commercial Arbitration Neutrality and Impartiality of Arbitrators

Case Brief

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Parties

Reliance Industries Ltd.

Petitioner

Union of India

Respondent

Petitioner No. 2 (foreign company)

Petitioner

Petitioner No. 3 (foreign company)

Petitioner

Procedural Posture

Arbitration Petition / Petition for Appointment of Third Arbitrator Under S. 11(6) Arbitration & Conciliation Act

Legal Issues

  1. 1 Whether the arbitration under the Production Sharing Contract is an International Commercial Arbitration
  2. 2 Criteria for appointment of third arbitrator under s.11(6)

Ratio Decidendi

The arbitration qualifies as an International Commercial Arbitration given the foreign parties to the PSC and operations. The Chief Justice of India is not confined to appointing a third arbitrator of Indian nationality; neutrality and impartiality are paramount, and UNCITRAL principles may be considered. The appointment of a neutral arbitrator, not proposed by either party, is appropriate to maintain independence.

Court Disposition

Arbitration Petition allowed.

Orders

  • Honourable Michael Hudson McHugh, AC QC, former Judge of the High Court of Australia and former Non-permanent Justice of the Court of Final Appeal in Hong Kong appointed as third arbitrator.
  • Arbitral Tribunal requested to enter upon reference at the earliest and render award expeditiously.