The Supreme Court on Wednesday recalled its earlier order of appointing a former Australian chief justice as the presiding arbitrator to resolve a dispute between the Mukesh Ambani-led Reliance Industries (RIL) and the oil ministry over reimbursement for developing the gas field in KG basin.
Justice SS Nijjar withdrew the appointment of James Spigelman, former chief justice and Lieutenant Governor of New South Wales, Australia, who was to act as the chairman of the arbitral tribunal, after the government said Spigelman?s name figured in the list of seven names recommended by RIL for being appointed as the third arbitrator.
Senior counsel Dushant Dave, appearing for the ministry, argued that the court was supposed to appoint someone who was not in the list of probables submitted by it or the Ambani firm.
Drawing attention to certain paragraphs from the Monday?s judgment, Dave claimed that ?grave error? had crept in by mistake and the same needs rectification.
Accepting this view, Justice Nijjar recalled his order issued on Monday and said he would soon appoint a new arbitrator. ?It was a mistake. We are withdrawing the order. We will appoint another arbitrator,? he said. However, RIL didn?t object to cancellation of Spigelman’s name and said that the court can appoint another arbitrator.
Justice Nijjar on Monday had said that ?it is necessary to have a foreigner as the third arbitrator to eliminate the apprehension of any bias in the minds of the petitioner (RIL).?
The judge said that both, the Centre and RIL, provided the list of eminent foreign arbitrators but he preferred to do his own survey for maintaining neutrality and chose the name of Justice Spigelman.
?Although two lists have been duly supplied by the learned counsel for the parties, I am of the opinion, in the peculiar facts and circumstances of this case, it would be appropriate if an individual not named by any of the parties is appointed as the third arbitrator,? Justice Nijjar had said
He further added that he had made ?discreet inquiries personally? before eventually zeroing in on Spigelman’s name.The other two arbitrators are former chief justices of India, SP Bharucha, nominated by Reliance and VN Khare, by the government.
