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Saturday, July 21, 2018

RIL moves SC against Bombay HC’s gas pricing ruling

Mukesh-run RIL moved the Supreme Court against Bombay HC's gas pricing ruling.

Written by Agencies | New Delhi | Published: July 4, 2009 3:52:45 pm

A day after Anil Ambani-led RNRL petitioned the Supreme Court seeking modification in the Bombay High Court order,elder brother Mukesh-run RIL moved the apex court challenging the same judgement that asked it to supply 28 MMSCMD gas to RNRL at USD 2.34 per mmbtu.

Reliance Industries Ltd in its appeal alleged 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 per day of gas from its Krishna-Godavari basin fields to RNRL at USD 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 Company 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 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.

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