Arbitration begins over disputed Hazira-Mora 36-inch pipeline

Vol 6, PW 16 (09 Oct 02) News in Brief

Arbitration proceedings have begun to resolve a dispute between Niko Resources, Gujarat Petroleum and the government over the cost recovery status of the disputed 14-km, 36-inch pipeline from Hazira to Mora.

Niko's choice of arbitrator is former Supreme Court chief justice P.N Bhagwati.

GSPC's arbitrator is former Delhi High Court judge D.P Wadhawa.

Together they have chosen former Supreme Court judge M.H Kania as the third arbitrator.

Intriguingly, on 11th July the Supreme Court ordered Shastri Bhawan and GSPC to appoint a common arbitrator even though their positions are opposed! At a meeting on 2nd September the judges directed the three parties to submit their position in time for the next meetings scheduled for 27th, 28th and 29th December. Elsewhere, Niko and GSPC have agreed to compromise and share ownership of the pipeline.

This issue was the subject of a separate court battle.