Delhi HC Set Aside Arbitral Award, Rules RIL Violated Public Trust in ‘Migrated Gas’ Extraction

The Delhi High Court set aside the arbitral award favouring Reliance Industries Limited (RIL), ruling that its extraction of ‘Migrated Gas’ from ONGC’s blocks without permission violated the Public Trust Doctrine and the Production Sharing Contract (PSC). 

The Court held that natural resources under Article 297 belong to the Union of India (UOI) as a trustee. 

ONGC had accused RIL of unauthorized extraction, leading to arbitration, which initially favoured RIL.

The High Court, however, ruled in favour of UOI, citing patent illegality and misinterpretation of the PSC, expanding its review under Sections 34 and 37 of the Arbitration Act.