The Supreme Court today allowed the plea of Reliance Industries Limited which had sought arbitration in London over its dispute with the Centre on the Panna, Mukta and Tapti oil and gas fields.

A Bench of Justices S S Nijjar and A K Sikri set aside the Delhi High Court order by which it had agreed to hear the government's plea against the arbitration proceedings in London.

It said that the high court committed a jurisdictional error in agreeing to hear the government's plea.

The court said that in the production-sharing contract, RIL and the Ministry of Petroleum and Natural Gas had consciously agreed for arbitration in London in case of any dispute.

Tapti, Panna and Mukta fields were awarded to a joint unincorporated venture of Reliance Industries and Enron Oil and Gas India Ltd in 1994 after biddings.