Key Points
The Delhi High Court has dismissed the government's petition seeking enforcement of a 2016 final partial award (FPA) of an arbitral tribunal, in a dispute with Reliance Industries over cost recovery provisions and reimbursement of royalties and taxes related to the Panna, Mukta and Tapti gas fields...
The 2016 FPA is "not an executable arbitral award" as it does not award any amount to the government, it said in the order on Friday...
Reliance and Shell-owned BG Exploration & Production India had in December 2010 dragged the government to arbitration over cost recovery provisions, profit due to the government and also statutory dues including royalty payable...
A three-member arbitration panel headed by Singapore-based lawyer Christopher Lau by majority issued an FPA on October 12, 2016, upholding the government view that the profit from the fields should be calculated after deducting the prevailing tax of 33% and not the 50% rate that existed earlier...
While the 2016 FPA, one in a series of FPAs passed by the arbitral tribunal, had not awarded any amount to the government, the oil ministry used this award to claim $2.31 billion from Reliance and partner BG Exploration & Production India by filing an execution petition in the HC...
