SC ends hearings in K-G basin arbitration

The Supreme Court asked Reliance Industries and the central government to give their respective list of names for an umpire if their dispute over the pricing of KG-D6 natural gas goes for arbitration. Arguments on the matter were completed on Monday. Solicitor General Ranjit Kumar has strongly opposed arbitration, arguing that pricing is a policy matter in which there can be no arbitration or even court intervention. Both parties had also suggested an arbitrator each; however, a dispute over the third has dragged on for nearly two years. RIL wants the third member to be from a neutral country, as the matter involves foreign collaborators and would be an international arbitration.

The government has argued that the policy and guidelines in question could not be brought into force because of the general election last year, followed by some state elections. When a policy is yet to implemented, it cannot be challenged in a court, Kumar has asserted. While concluding his argument, the solicitor general told judge Ranjan Gogoi that the issue of pricing, raised by communist leader Gurudas Dasgupta, is already before another bench, which is yet to decide on that petition and a like one from a civic group, Common Cause.

That petition, alleging collusion to benefit the company by doubling the price of gas, is intertwined with the issues for arbitration.Therefore, the issue of arbitration should await the outcome of that petition, Kumar argued. The government has also alleged suppression of facts by Reliance.

RIL counsel Harish Salve contended the government had adopted double standards. It has contested arbitration and at the same time joined the process by selecting its member.