JUDGMENT

SURINDER SINGH NIJJAR, J. –

1. Leave granted.

2. This appeal is directed against the judgment of the High Court of Delhi at New Delhi rendered in OMP No.46 of 2013 dated 22nd March, 2013. By the aforesaid judgment, the Delhi High Court has allowed the petition filed by the respondent under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Arbitration Act, 1996’), challenging the Final Partial Award dated 12th September, 2012. By the aforesaid Award, the objection raised by the Union of India relating to the arbitrability of the claims made by the petitioner in respect of Royalties, Cess, Service Tax and CAG Audit have been rejected.

3. Before we discuss the legal issues, it would be pertinent to make a very brief note of the relevant facts.

4. The parties had entered into Two Production Sharing Contracts dated 22nd December, 1994 (as amended by Amendment Agreement No.1 and Amendment Agreement No.2) (hereinafter referred to as “PSC” or “PSCs”) as and when appropriate. These two PSCs provide for the exploration and production of petroleum from the Mid and South Tapti Fields (hereinafter referred to as “Tapti” or “Tapri Field”) and for