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Reliance Industries moves Supreme Court

NEW DELHI: A day after Anil Ambani-led RNRL petitioned the Supreme Court seeking modification in the Bombay High Court order, elder brother Mukesh-run Reliance Industries (RIL) has moved the apex court challenging the same judgment that asked it to supply 28 million standard cubic metre a day gas to RNRL at $2.34 per mmBtu.

RIL in its appeal on Saturday contended that the High Court had erred in deciding the three terms — quantity, tenure and price of gas supply — to power plants of RNRL affiliates as the court had no jurisdiction.

The High Court on June 15 had asked RIL to honour a 2005 family agreement to supply 28 million cubic meters a day of gas from its Krishna-Godavari basin fields to RNRL at $2.34 per mmBtu for 17 years from the date of setting up of the Dadri power plant.

“The High Court as a company court exercising jurisdiction under Section 392 of the Companies Act, 1956, had no power to modify the scheme of reconstruction of a company by demerger as approved almost unanimously by 99.9998 per cent shareholders and creditors and sanctioned by the court...” RIL said in the appeal.

According to the petition, the supply of gas as per the MoU was subject to all necessary approvals as required under the Production Sharing Contract and the government policy. The High Court, while concluding that the MoU of June 18, 2005, was binding on the companies, overlooked the fact that obligations contained in the MoU contemplated approval of the government and the same were not absolute. — PTI

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