SC appoints arbitrator in RIL gas pricing dispute

The dispute is related to the $1.7 bn fine imposed on RIL

The Supreme Court on Tuesday appointed retired judge Michael Kirby of Australia as chairman of a three-member arbitral tribunal to decide the disputes between the government and Reliance Industries on various aspects of the Krishna-Godavari basin gas pricing.

Senior counsel Harish Salve for RIL suggested the name and judge J S Khehar accepted it. Solicitor General Ranjit Kumar did not raise any objection. The court hoped the chairman-nominee would not “disappoint us” and accept the post. The other two members of the panel are retired Supreme Court chief justices V N Khare and S P Bharucha.

The appointment of the presiding officer had delayed arbitration for almost a year. In April this year, the court named a chairman in a 70-page judgment but withdrew it two days later. The dispute is related, among other things, to the fine imposed by the government amounting to $1.797 billion in 2010-11 and 2012-13 for production shortfall.