New Delhi, Aug. 7 -- The Supreme Court on Friday declined to interfere with the Delhi High Court's hearing in the Union government's appeal seeking to recover about $2.31 billion from Reliance Industries Ltd (RIL) and its partners in the nearly three-decade-old Panna-Mukta and Tapti offshore oilfields dispute.

A bench led by Chief Justice Surya Kant was hearing Reliance's challenge to the Delhi High Court's February order, which held that the Centre's appeal to enforce a foreign arbitral award was maintainable. The Supreme Court allowed the high court to continue hearing the appeal on the merits.

The court also kept Reliance's objection to the maintainability of the Centre's appeal open. This means the company can raise the issue again,...