Union Of India vs Reliance Industries Limited And Ors

The Supreme Court reaffirmed the principles established in Bhatia International [(2002) 4 SCC 105] regarding the determination of the juridical seat of arbitration, emphasizing that the seat is crucial for the legal framework governing arbitration proceedings. The Court held that the arbitration agreement's provisions, particularly regarding the seat being London, must be respected, and the Delhi High Court's decision to entertain a Section 34 petition was erroneous. Consequently, the Court dismissed the Special Leave Petition (SLP) filed by the Union of India, upholding the validity of the arbitration proceedings as per the agreed terms of the Production Sharing Contracts (PSCs).