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Supreme Court-appointed arbitrator in Reliance Industries' KG-D6 dispute with the government had refused to take up the assignment due to preoccupations but later relented and accepted being the neutral umpire.

The apex court had on April 29 named Michael Hudson McHugh, former judge of the High Court of Australia, as the third arbitrator in the dispute over cost recovery in KG-D6 gas block. Sources said McHugh, however, refused to become the chairman of the tribunal, saying he was not contacted before the appointment was made.

McHugh said that given his availability constraint and the fact that the Supreme Court wanted the process to be expedited, he would not be able to act as the chairman of the tribunal.

He, however, had a change of heart after Thomas K Sprange, speaking on behalf of the partners in KG-D6 block, wrote to him saying the parties had “always envisaged that this arbitration would be long term and would take some time given the issues”.

Sources said following this McHugh consented to act as chairman of the tribunal in accordance with the order of the Supreme Court. McHugh did not respond to email requests for comments. RIL and its partners BP of UK and Canada's Niko Resources gave consent to McHugh presiding over the arbitration tribunal.

Source-On Request