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UNION OF INDIA versus RELIANCE INDUSTRIES LIMITED & ORS.

Citation: [2015] 10 S.C.R. 85 · Decided: 22-09-2015 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Dismissed

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Judgment (excerpt)

[2015] 10 S.C.R. 85 
UNION OF INDIA 
v. 
RELIANCE INDUSTRIES LIMITED & ORS. 
(Special Leave Petition (Civil) No.11396 of 2015) 
SEPTEMBER 22, 2015 
[A. K. SIKRI AND R. F. NARIMAN, JJ.] 
A 
B 
Arbitration and Conci.'.'ation Act, 1996 - Part I, s. 14 -
Seat of arbitration outside India -Applicability of Part I of the c 
Act - Product Sharing Contracts(PSC) - Execution of, for 
Tapta and Panna Mukta oil and gas fields between Union of 
India and the companies - Dispute between the parties -
Invocation of arbitration clause and appointment of arbitrator 
-Arbitration agreement between the parties that arbitration D 
agreement would be governed by English law and the juridical 
seat of arbitration is London - Certain disputes under PSC -
Initiation of arbitration proceedings in London by UOI- Final 
partial award by arbitral tribunal - Petition filed u/s. 34 by 
UOI for setting aside the arbitration award and the High Court E 
held the same to be maintainable- In appeal, Supreme Court 
set aside the order passed by the High Court holding that 
Part I of the Act was not applicable and it was necessarily 
excluded being wholly inconsistent with the arbitration 
agreement - On basis thereof, High Court dismissed the F 
appeal pending uls. 14 as not maintainable - Review petition 
as also curative petition against the Supreme Court judgment 
also dismissed - In SLP, held: Arbitration agreements being 
prior to Bharat Aluminium Company's judgment, would be 
governed by Bhatia International wherein it was held that Part-
G 
I would not apply if it is excluded by necessary implication, 
the juridical seat of arbitration is outside India or the law 
governing the arbitration agreement is a law other than Indian 
law- In the instant case, this Court had already determined H 
85 
86 
SUPREME COURT REPORTS 
[2015] 10 S.C.R. 
A 
that the juridical seat of the arbitration is at London and the 
arbitration agreement is governed by English law, thus, it was 
not open to UOI to argue that Part-I would be applicable -
Valiant attempt to reopen a question settled twice by dismissal 
of review petition and curative petition on the very same 
B ground, to meet with the same fate -As regards the plea that 
res judicata would not attach to questions relating to 
jurisdiction, would not apply as the effect of clause of the PSC 
raises a mixed question of fact and law and not a pure 
question of jurisdiction unrelated to facts - Thus, both on res 
C judicata as w,ell as the law laid down by Supreme Court, 
application uls. 14 to be dismissed - It is also an abuse of 
the process of the Court as only after moving under the 
UNCITRAL Arbitration Rules and getting an adverse 
0 judgment from the Permanent Court of Arbitration the 
application was filed u/s. 14 - Thus, the order of High Court 
is upheld. 
E 
F 
G 
H 
Reliance Industries Limited and another v. Union 
oflndia 2014 (6) SCR 456: (2014) 7 sec 603; 
Bhatia International v. Bulk Trading S.A. & Anr. 
2002 (2) SCR 411: (2002) 4 SCC 105; National 
Thermal Power Corporation v. Singer Company 
1992 (3) SCR 106 : (1992) 3 SCC 551; Venture 
Global Engineering v. Satyam Computer Services 
Ltd. & Anr. 2008 (1) SCR 501: (2008) 4 sec 190; 
Bharat Aluminium Company Ltd. v. Kaiser 
Aluminium Technical Services, Inc. (2012) 9 
SCC; Videocon Industries Ltd. v. Union of India 
& Anr. 2011 (8) seR 569: (2011) 6 sec 161; 
Dozco India Private Limited v. Doosan lnfracore 
Company Limited 2010 (12) SeR 259: (2011) 6 
sec 179; Yograj Infrastructure Limited v. Ssang 
Yong Engineering and Construction Company 
Limited 2011 (14) SCR 301: (2011) 9 sec 735; 
UNION OF INDIA v. RELIANCE INDUSTRIES LIMITED 
87 
Harmony Innovation Shipping Ltd. v. Gupta Coal 
A 
India Ltd. & Anr. 2015 SCR 697; Mathura Prasad 
Bajoo Jaiswal v. Dossibai N.B. Jeejeebhoy 1970 
(3) SCR 830: (1970) 1 SCC 613 - referred to. 
Case Law Reference 
B 
2014 (6) SCR 456 
Referred to. 
Para 1 
2002 (2) SCR 411 
Referred to. 
Para 7 
1992 (3) SCR 106 
Referred to. 
Para 10 
c 
2008 (1) SCR 501 
Referred to. 
Para 14 
(2012) 9 sec 
Referred to. 
Para 15 
2011 (8) SCR 569 
Referred to. 
Para 17 
D 
2010 (12) SCR 259 
Referred to. 
Para 17 
2011 (14) SCR 301 
Referred to. 
Para 17 
2015 SCR 697 
Referred to. 
Para 17 
E 
1970 (3) SCR 830 
Referred to. 
Para 21 
CIVIL APPELLATE JURISDICTION : Special Leave 
Petition No. 11396 of2015. 
F 
From the Judgment and Order dated 03.07.2014 of the 
High Court of Delhi at New Delhi in O.M.P. No. 671 of 2013. 
Ranje

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