New Delhi, July 7 (Inditop.com) The Supreme Court Tuesday issued notices to Reliance Industries Ltd (RIL) of Mukesh Ambani and Reliance Natural Resources Ltd (RNRL) of Anil Ambani, locked in a dispute over the supply of gas from the Krishna-Godavari basin.
A bench of Chief Justice K.G. Balakrishnan and Justice P. Sathasivam also issued a notice to the central government on a cross-appeal by the two sides against a June 15 direction of the Bombay High Court to the two to arrive at a fresh gas supply agreement.
After issuing notice to the three parties, the apex court bench slated the case for next hearing July 20.
Anil Ambani’s group firm RNRL moved the apex court last week seeking modification of the Bombay High Court order and to bind RIL to supply gas to it from the Krishna Godavari basin.
RNRL has come to the apex court contending that the high court, despite categorically ruling in its favour, has unfairly asked it to again negotiate various terms of gas supply agreement with RIL, including the price of gas, tenure and quantity.
The company said it is challenging a limited part of the high court ruling to seek the apex court’s directions to amend the gas supply agreement strictly in line with its findings and direct immediate implementation of the pact without any further delay.
RNRL also said the high court had failed to give complete and effective relief to it, which could have been achieved by directing amendment of the gas supply agreement instead of leaving it to the parties to work it out.
RNRL said that both the single and the division benches of the high court should have resolved the controversy rather than leaving it to the parties to renegotiate a suitable arrangement.
On the other hand, RIL too has moved the apex court challenging the Bombay High Court ruling which asked it to supply gas to RNRL at $2.34 per mmbtu.
RIL 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.
