In a major development in the high-stakes energy sector, the Supreme Court of India has agreed to adjourn hearings on the long-running Krishna-Godavari (KG) basin gas migration dispute, paving the way for a potential out-of-court settlement between Reliance Industries Ltd (RIL) and the Central Government.
A three-judge bench, led by the Chief Justice of India and including Justices Joymalya Bagchi and Vipul M Pancholi, agreed to postpone the matter until the third week of July. The decision came after both parties expressed a mutual willingness to resolve the dispute through bilateral conciliation.
A Mutual Push for Conciliation
The breakthrough occurred when senior advocate Kapil Sibal, representing RIL, informed the court that a formal plea for conciliation had been submitted to the government. Responding to the mention, Attorney General R Venkataramani stated that the Centre is open to exploring a bilateral dispute resolution process and is not averse to the request.
The bench welcomed the prospect of a mutual settlement.
“We will be most happy if the dispute is resolved through conciliation,” the Chief Justice of India remarked during the proceedings. “If you come out with a settlement, we will dispose of the appeal.”
This development marks a significant shift from the court’s stance on May 20, when the apex court had declined a previous submission by RIL to put the hearings on hold while the company and its partners sought mediation.
Background of the Multi-Million Dollar Dispute
The legal battle before the Supreme Court involves appeals filed by RIL and its two international partners, BP Exploration (Alpha) Ltd and Niko (NECO) Ltd.
The consortium is challenging a February 14, 2025, verdict by a division bench of the Delhi High Court. That ruling had set aside a previous order by a single-judge bench, which had originally upheld an arbitral award in favor of RIL and its partners.
The core of the dispute centers on allegations by the Centre that the corporate partners siphoned gas from adjacent deposits in the KG basin—resources they allegedly had no legal right to exploit.
With the Supreme Court now granting the parties until mid-July to find common ground, the focus shifts to bilateral negotiations as RIL and the Centre attempt to settle one of the country’s most closely watched energy disputes outside the courtroom.
