Post-contractual agreements suitable solution: RIL in SC

Reliance Industries Ltd today told the Supreme Court that post-contractual agreements could be a suitable arrangement to resolve its dispute on the supply of gas with Anil Ambani....

Reliance Industries Ltd today told the Supreme Court that post-contractual agreements could be a suitable arrangement to resolve its dispute on the supply of gas with Anil Ambani-promoted RNRL and the price fixed for distributing gas to NTPC could be applied to settle the row.

However,RILs insistence on the NTPC price 2.34 per unit was objected to by the government which said the Mukesh Ambani group could not raise the issue of a contract with a PSU in this matter as the RIL-NTPC case was pending before the Bombay High Court.

The NTPC contract cant be raised here as it is a matter sub judice in the high court, Additional Solicitor General Mohan Parasaran pointed out when senior counsel Harish Salve,appearing for RIL,said the draft of the NTPC agreement could be a basis as it was approved by the government.

Though the government raised an objection to RIL raising the NTPC issue,senior counsel Ram Jethmalani and Mukul Rohtagi,appearing for RNRL,took the opportunity to criticise its stand on the whole issue. Government didnt intervene in the NTPC matter in the high court, they said,adding the government is in cahoots with RIL.

When Parasaran objected to the remarks,Jethmalani said,I will demonstrate that if not the whole government but your ministry,i.e. the Ministry of Petroleum and Natural Gas,is in absolute conspiracy with RIL. He charged that both RIL and the Oil Ministry are hand in glove over the issue.

Salve said under the demerger scheme there are certain sufficient guidelines to answer all the questions which had arisen in the dispute. What the court can definitely look at is the post-contractual arrangements,agreements and the conduct. The post-contractual arrangement is what will be the scheme for a suitable arrangement, he said.

Salve said the terms for the supply of gas with RNRL were the same as those with the power PSU,which was approved by the government.