'Heavens Will Fall' : Supreme Court Asks Centre How Business Friendly Environment Is Created When Arbitration Proceedings Are Delayed

The Supreme Court on Wednesday expressed anguish at the attempt made by the Union Government to delay an international arbitration proceedings initiated by the Reliance Industries and asked if this is the way to create a business friendly environment.Senior Advocate Harish Salve, appearing for the Reliance Industries, mentioned the matter before the Chief Justice of India DY Chandrachud the issue regarding the delay in the commencement of the international arbitration, although two foreign arbitrators are present in India. He said that the Centre's application seeking the termination of the panel of arbitrators on the ground of bias was dismissed by the Delhi High Court. Yet the proceedings have not been commenced on the ground that the Centre is seeking to challenge the High Court's order.Senior Advocate AK Ganguli, appearing for the Union Government, said that the Centre has already filed a Special Leave Petition in the Supreme Court against the High Court's order and asked if "heavens will fall" if the proceedings are deferred till the SLP is decided."Heavens will fall", came the immediate reply of CJI Chandrachud. "On the one hand, we are crying hoarse that we want to encourage foreign investment , encourage business. And is this the kind of business friendly environment that you want to create? A three member international arbitration tribunal is waiting.."Salve at this juncture highlighted that the arbitration proceeding was initiated in 2011. CJI Chandrachud told Ganguly that there is no stay against the continuation of the proceedings.The petition filed by RIL was disposed of recording that there is no restraint on the arbitral proceedings. Two days back, another bench of the Supreme Court had also made similar remarks against the delay in arbitration proceedings. Criticising the Delhi Metro Rail Corporation for delaying the enforcement of an award passed against it, a bench led by Justice Gavai told the Attorney General, "On one hand there are public speeches on making India an international arbitration hub, but on the other, why is there no effort for enforcement of an award? The award upheld by the court has to be followed.If you really want India to be an international arbitration hub then it has to start from you".Case Title : Reliance Industries Ltd vs Union of India SPECIAL LEAVE PETITION (CIVIL) Diary No(s).40985/2022Click here to read/download the order

'Heavens Will Fall' : Supreme Court Asks Centre How Business Friendly Environment Is Created When Arbitration Proceedings Are Delayed

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