Bombay HC rules in favour of RNRL in gas dispute
In a recent verdict, Bombay High Court has directed Mukesh Ambani's Reliance Industries Ltd to assure the gas supply to Anil's Reliance Natural Resources Ltd for next 17 years at a fixed price of $2.34 million metric British thermal unit
RELIANCE INDUSTRIES Ltd (RIL) owned by Mukesh Ambani was directed by the Bombay High Court on Monday to assure gas supply of 28 million metric standard cubic metre per day (mmscmd) to Reliance Natural Resources Ltd (RNRL), owned by his younger brother Anil Ambani.
Bombay High court directed RIL to assure the gas supply from Krishna-Godavri basin for next 17 years at a fixed price of $2.34 million metric British thermal unit (mmbtu).
The court also asked both the companies to come to an agreement and suggested that the Ambani brothers could consult their mother to find a way out as per the memorandum of understanding.
As per the MoU between RIL and ADAG controlled RNRL, former was to supply gas from KG basin to RNRL power project in Uttar Pradesh.
RNRL had filed a petition in the Bombay High Court in 2006 to force RIL to honour its commitment and supply the gas. The court had asked both sides to resolve the matter as per family agreement and restrained RIL to sell gas to any third party.
Both the firms had approached the division bench of the High Court against the single bench order. The division bench allowed RIL to sell gas to third parties but it mentioned that this order was subject to final decision of the court.
The court also asked both the companies to come to an agreement and suggested that the Ambani brothers could consult their mother to find a way out as per the memorandum of understanding.
As per the MoU between RIL and ADAG controlled RNRL, former was to supply gas from KG basin to RNRL power project in Uttar Pradesh.
RNRL had filed a petition in the Bombay High Court in 2006 to force RIL to honour its commitment and supply the gas. The court had asked both sides to resolve the matter as per family agreement and restrained RIL to sell gas to any third party.
Both the firms had approached the division bench of the High Court against the single bench order. The division bench allowed RIL to sell gas to third parties but it mentioned that this order was subject to final decision of the court.
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