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The nomination of James Spigelman AC QC, former chief justice & lieutenant governor of New South Wales, Australia, as the foreign arbitrator in Reliance Industries Ltd’s (RIL’s) dispute with the government over pricing of KG-D6 gas was withdrawn by a Supreme Court judge on Wednesday.
The withdrawal came as the government pointed out to judge S S Nijjar that Spigelman, the third arbitrator he had named two days ago, had also figured on the list of names suggested by RIL.
The two other arbitrators — V N Khare, nominated by the government, and S P Barucha, named by the company — are former chief justices of India.
There were differences between the two parties over the third arbitrator, who was to act as the chairman of the arbitration tribunal. So, it was left for judge Nijjar to decide.
In his 70-page order delivered on Monday, Nijjar referred to the sharp difference of opinion and said “I deem it appropriate to perform the task of appointing the third arbitrator in this Court itself. Therefore, I had requested the learned senior counsel for the parties to supply a list of eminent individuals, one of whom could be appointed as the third arbitrator.”
“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. I have discretely conducted a survey to find a suitable third arbitrator who is not a national of any of the parties involved in the dispute.” In the event, it appeared Nijjar could have overlooked the fact that the Australian was in the list supplied by RIL.
The order noted that there was considerable delay in sorting out the issues by arbitration and, therefore, the new tribunal should proceed fast on giving an award. The dispute relates, among other things, to the fine imposed by the government, amounting to $1.797 billion in 2010-11 and 2012-13 for production shortfall. Meanwhile, another Supreme Court Bench continued hearing Solicitor General Mohan Parasaran on the gas pricing issue.
Parasaran reiterated that the government had taken tough measures for the lapses committed by RIL in non-utilisation of capacity. In two petitions, Communist Party of India’s Gurudas Dasgupta and non-governmental organisation Common Cause had alleged several acts of corruption against the company, including gold plating of gas price, hoarding of gas and non-utilisation of capacity.
The Bench, headed by judge B S Chauhan, was informed that all these issues were going to be arbitrated. Parasaran said the new exploration licensing policy, as well as the pricing, had been suspended in view of the Election Commission’s letter pointing out that the model code of conduct for the general elections was in force.
Who is Spigelman?
* Spigelman was the chief justice & lieutenant governor of New South Wales, Australia. He is also chairman of the Australian Broadcasting Corporation. He also served as a senior advisor and principal private secretary to the prime minister of Australia and as permanent secretary of the government’s department of the media from 1972 to 1976.
Why was he recalled?
* The judge who named him on Monday had opined that the third arbitrator should be an individual not suggested by any of the parties. The govt on Wednesday pointed out Spigelman’s name figured on the list of probables given by RIL.
