SC directs Ambani brothers to renegotiate in six weeks
The Supreme Court also ruled that the government of India will decide the final price of the gas and and give permission to sell the same. It also ordered RIL and RNRL to renegotiate the terms within six weeks.
THE SUPREME COURT on Friday, May 7, ruled 2-1 in favour of Mukesh Ambani led Reliance Industries in the RIL-RNRL gas dispute. In a two-part judgement Chief Justice Balakrishanan amd Justice Sathasivam ruled in faour of RIL whereas Justice Reddy ruled in favour RNRL led by Anil Ambani. In a major decision, the Apex Court ruled that the production sharing agreement between the two companies overrides all contracts. However, in his dissenting judgement, Justice P Sathasivam opined that legal owner of the gas was government of India and as such the MoU between Ambani brothers was not legally sustainable.
The Supreme Court also ruled that the government of India will decide the final price of the gas and and give permission to sell the same. It also ordered RIL and RNRL to renegotiate the terms within six weeks.
RIL and RNRL are locked in a dispute over the sale of 28 million units of natural gar to RNRL for 17 years for a fixed price 2.34 US dollars per unit from Krishna-Godavri basin.
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