New Delhi, July 03: Mukesh Ambani-run Reliance Industries on Friday filed a caveat in the Supreme Court to ensure it is given a chance to explain itself in a case relating to natural gas supply to Anil Ambani group firm RNRL.
RNRL earlier today moved the apex court seeking modification of the Bombay High Court ruling that suggested firming up gas supply contract through negotiations.
When contacted, an RIL spokesperson confirmed filing the caveat against an ex parte judgment.
RIL had earlier talked about filing appropriate proceedings in the Supreme Court against the judgment delivered by the Bombay High Court on June 15, 2009.
The High Court had ruled that RNRL should get gas from RIL at a price of USD 2.34 per mmbtu, but had asked the two companies to firm up an agreement on related issues within a month.
RNRL case
Anil Ambani group company alleged that RIL was not willing to sit across the table as directed by the Bombay High Court for reaching an agreement within a month, RNRL said the court had already gone into the merit of gas supply, including pricing, and hence it should be
implemented without leaving the two parties for discussion.
RNRL moved the Supreme Court two days after Reliance Industries said it would move the apex court on the Bombay High Court order that upheld Anil Ambani group's plea for 28 mmscmd of gas at a rate of USD 2.34 mmbtu but asked the two sides to negotiate an agreement for this.
The court also gave the two companies a month's time to work out firm gas volumes, price, timelines and other commercial details for sourcing the fuel on the basis of MoU between them prior to their split in 2005.
RIL also informed Reliance Natural Resources Ltd through a communication that it would not sign any agreement without
the approval of the government.
"We cannot sign any agreement without approval of the government on price, quantity and tenure," RIL had said and added that it was studying the high court verdict.
RNRL lawyer Mukul Rohatgi told reporters in Mumbai that "after categorically ruling in our favour, court cannot ask us again to sit down with a party which is not willing to sit across...not now, or even in the past,"
Rohtagi said the special leave petitions have been filed challenging the last part of the High Court order asking RNRL to "again negotiate" after "ruling in our favour in terms of price of gas, tenure and quantity".
The SLPs seek directions from the apex court to amend the Gas Supply Agreement strictly in line with the High Court findings and to immediate implementation of the same without any further delay.
The Anil Ambani group company 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 out the agreement.
The SLPs said that the High Court ruling solely related to RIL's share of gas and did not have any impact on the government's share of gas or its rights and entitlements.
This arrangement had no monetary impact on the Government of India as RIL was bound to supply gas to RNRL from its share as contemplated by the scheme which was approved by the creditors, shareholders, the Central government, it added.
According to RNRL, the entire controversy arose in view of RIL's consistent and continued conduct of backing out from its commitment.
"This is purely out of commercial greed. Higher gas price being sought by RIL will only further enrich this already very profitable company by windfall profits of additional Rs 50,000 crore...," the petition said.
RNRL in a statement later in the evening said it was compelled to move the apex court by RIL's "obstructionist position". It added that the company is seeking directions to RIL to execute a reliable pact in accordance with the high court findings.
The statement further said the "High Court order fully protects the right, entitlement and economic interest of the government."
It said the obligation to supply gas is a result of corporate restructuring of RIL and not a private arrangement.
Bureau Report