The High Court of Britain has ruled against the government in this matter.

The Indian government's challenge has been dismissed in an arbitration decision of $111 million in favor of Reliance-Shell.

The government had challenged the arbitration order in favor of Reliance Industries and Shell in the cost recovery disputes in the western offshore Panna-Mukta and Tapti oil and gas fields.

The High Court of Britain has ruled against the government in this matter.

Two sources with knowledge of the matter said that High Court Judge Ross Cranston, in his judgment on June 9, 2022, said that the government should have brought its objections to the arbitration tribunal not meeting the prescribed limits when it was 2021. This judgment was pronounced in

Rejecting the government's argument, the court said that the objections are "restricted" under the principle of an English law.

In this, no party can raise any such matter in the new proceeding which could have been raised in the previous proceedings.

E-mails sent to the Ministry of Petroleum and Natural Gas in this regard did not elicit any response.

However, officials said the government will study the court order and then explore the option of taking it up at an appropriate forum.

Reliance Industries also did not receive a reply to an e-mail sent in this regard.

On December 16, 2010, Reliance and Shell-owned BG Exploration and Production India had dragged the government into the arbitration process over statutory dues including cost recovery provisions, state benefits and royalty payments.

It wanted to increase the ceiling on the cost to be charged from the sale of oil and gas before sharing the profits with the government. was picked up.

A three-member arbitration panel, headed by Singaporean lawyer Christopher Lau, issued the Final Partial Judgment (FPA) by majority vote on October 12, 2016.

It agreed with the government's view that the profit from these sectors should be calculated after deducting the existing 33 per cent tax and not on the basis of 50 per cent tax as per the earlier regime.

The arbitration tribunal had also said that the cost recovery in the contract would remain at $545 million in the Tapti gas field and $5775 million in the Panna-Mukta oil and gas field.

Both companies wanted to increase the cost provision to $365 million for Tapti and $625 million for Panna-Mukta.

Based on this decision, the government had sought dues of $3.85 billion from Reliance and BG Exploration & Production.

Both companies challenged the 2016 FPA in the British High Court.

It had referred the issue to the arbitration tribunal for reconsideration on April 16, 2018.

The arbitration tribunal had ruled in favor of both the companies on January 29, 2021.

Reliance's annual report last year said the government had rejected the Indian government's challenge to the 2018 final FPA decision by a UK court.

The final decision on this issue came in January 2021.

After that both the parties had applied for clarification in the tribunal.

The tribunal, on April 9, 2021, allowed some minor corrections to Reliance and Shell, but rejected the government's request.

After that the government challenged this decision in the High Court of Britain.

The court has given its verdict on June 9, 2022.

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