The Delhi High Court Today (Feb 14) canceled an arbitration ruling that had earlier favored Mukesh Ambani’s Reliance Industries Limited (RIL) in the Krishna-Godavari (KG) basin gas migration dispute. This decision revives the Indian government’s $1.5 billion claim against RIL, alleging unfair extraction of gas from ONGC’s fields. The court ruled that the previous award was against settled legal principles, marking a major legal blow for RIL.
The bench led by CJI Chandrachud Today (May 8th), emphasized that contracts awarded to private parties should not be cancelled without providing reasons. This statement came as the bench reserved its judgment on an appeal challenging a decision of the Calcutta High Court. The Apex court marked that private parties, having made investments after securing a contract, hold a reasonable expectation of receiving returns.