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RIL-RNRL case hearing on July 20

NEW DELHI: The Supreme Court on Tuesday issued notice to Mukesh Ambani-led Reliance Industries and Anil Ambani-run Reliance Natural Resources on cross appeals filed by both the companies against an interim order of the Bombay High Court on dispute relating to gas supply.

A Bench of Chief Justice K. G. Balakrishnan, Justice P. Sathasivam and Justice J. M. Panchal also issued notice to the Centre cited as an intervener. The Bench, after hearing counsel for the parties during ‘mention’ time, posted the matter for further hearing on July 20.

Reliance Industries was aggrieved over the order directing it to supply 28 million standard cubic feet a day of gas at $2.34 per mBtu of gas for 17 years from the date of setting up of the Dadri power plant. It said that the High Court had erred in deciding the three terms — quantity, tenure and price of gas supply — to power plants of RNRL affiliates.

It pointed out that the MoU did not specify any price but only indicated that the gas supply would be on terms not less favourable than the NTPC commercial terms which contained the price of $2.34 per mBtu of gas. The court overlooked the fact that admittedly this price as well as any price proposal relating to RNRL was separately and expressly subject to approval by the government, which by its communication dated July 26, 2006, had declined to approve the price. The SLP sought quashing of the impugned order dated June 15 and an interim stay of its operation.

In its SLP against the same interim order, RNRL said it was aggrieved as the High Court had erred in not giving a direction for amendment of the gas supply agreement. It said the entire controversy arose in view of RIL’s consistent and continued conduct of backing out from its firm commitment to supply gas to RNRL.

It sought a direction to restrain RIL from supplying or entering into any contract for the supply of natural gas for the amount of 40 mscmd with any other party other than the petitioner.

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