Delhi High Court Overturns Favorable Award for Reliance in Controversial Gas Dispute

The Delhi High Court overturned an arbitral award favoring Reliance Industries, accused of unlawfully extracting gas. The Central government had challenged a previous judgment that dismissed their claims against the company. The case will likely proceed to the Supreme Court following the high court's decision.

The Delhi High Court has nullified an earlier order that endorsed an arbitral award in favor of Reliance Industries and partners over allegations of unauthorized gas extraction from disputed deposits.

The bench, consisting of Justices Rekha Palli and Saurabh Banerjee, supported the Central government's appeal against a May 9, 2023 judgment. This prior judgment had ruled in favor of Reliance, owned by Mukesh Ambani, with a single judge asserting that the arbitral tribunal's decision was within the bounds of reason.

Initially, in July 2018, an international tribunal dismissed the Indian government's $1.55 billion claim against Reliance for allegedly exploiting gas deposits unlawfully. However, the Delhi High Court's latest reversal has set the stage for Reliance to approach the Supreme Court to contest the verdict, spotlighting the company's legal battle over the KG-D6 block.