STOCK MARKET BSE NSE

SC dismisses government request to stay sharing of documents

The case has its genesis in the government’s decision in disallowing the two companies to recover various costs amounting to $3.02 billion between 2012 and 2016.

Published: 09th October 2019 11:05 AM  |   Last Updated: 09th October 2019 11:05 AM   |  A+A-

Supreme Court

Supreme Court ( Photo | Shekhar Yadav, EPS)

By Express News Service

NEW DELHI: Reliance Industries and its partner for the KG-D6 block, BP Plc, have received some relief from the Supreme Court, which has dismissed an Oil Ministry petition asking for a stay on an arbitration panel’s order seeking several documents which form the basis for the $3 billion penalty imposed on the two oil and gas companies. The issue has been under international arbitration since 2015.  

The case has its genesis in the government’s decision in disallowing the two companies to recover various costs amounting to $3.02 billion between 2012 and 2016. According to the oil ministry, this penalty was levied because the ministry’s technical arm Directorate General of Hydrocarbons (DGH) felt that output in the KG-D6 block was lagging because the firms did not drill the number of wells they had committed to.

Consequently, a three-member arbitration panel was constituted in 2015 to hear the companies’ arguments against the government claim. This committee had then asked the oil ministry to furnish a wide array of documents, including those “sent, received or created” that “set out the reasons” for the government decision.

However, the Oil Ministry has opposed the request, arguing first at the Delhi High Court that the disclosure would raise confidentiality issues. But, the Delhi High Court dismissed the Centre’s petition in December last year, and the Supreme Court has now declined to do the same in a setback to the oil ministry.

“In the peculiar facts and circumstances of the case, we are not inclined to interfere with the impugned order(s). The special leave petitions are accordingly dismissed,” ruled a two-judge bench comprising Justices R Banumathi and A S Bopanna in early August.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp