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| Edited By: Sreejiraj Eluvangal |Source: DNA |Updated: Mar 16, 2018, 04:59 AM IST
Anil Ambani’s Reliance Natural Resources (RNRL) will approach the Bombay High Court so that it can be made a party to the gas dispute between NTPC and Mukesh Ambani’s Reliance Industries (RIL). This follows the court’s decision on Monday to link the terms of RNRL-RIL gas supply to the RIL-NTPC deal.
According to a source close to the development, the Anil Ambani firm is preparing an application to be put before the judge hearing the matter.
“Our plea will be that the honourable high court has ruled that our terms of gas purchase from RIL will depend on those of NTPC’s, which will in turn be determined by the outcome of this case. Therefore, we have everything to lose or gain from the outcome of this case and should therefore be made a party to the case,” the official said, requesting anonymity.
Legal experts said the court will allow RNRL lawyers to get involved in the case only if they can prove that they are both affected by the outcome and have something to add to the arguments.
Meanwhile, in the RIL-NTPC case hearing on Wednesday, the court said it would decide on allowing the supplier firm (RIL) to amend its plea only after two weeks.
RIL is seeking to amend the petition to bring in the Central government affidavit in the high court in its case with the Anil Ambani Group firm RNRL, stating the decision of the empowered group of ministers on KG basin gas pricing and allocation.
RNRL has just won a case against RIL in the Bombay High Court regarding RIL’s obligation to supply it with natural gas.
The RIL-NTPC case too revolves around RIL’s obligation to supply gas to the public sector company.
While in case of RNRL, RIL’s objection to supply gas was mainly around violating government guidelines, in case of NTPC, the company wants easier compensation clauses for non-performance of the contract.
NTPC dragged RIL to court after the company went back on the letter of intent signed with NTPC to supply gas for 17 years at $2.34 per unit.
On Monday, the court had ruled that RIL cannot use government policy as a reason for not supplying gas to RNRL, but also said the terms of supply will be no worse than those offered to NTPC.
If NTPC manages to force RIL to supply gas at the rate at which RIL had bid, it would also mean that RNRL would be entitled to similar or easier terms.
