Financial Daily from THE HINDU group of publications
Saturday, Dec 24, 2005
Financial Daily from THE HINDU group of publications Saturday, Dec 24, 2005 |
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Corporate
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Corporate Disputes Industry & Economy - Power NTPC, Reliance case adjourned to Jan 30 Our Bureau
Mumbai , Dec. 23 THE case between NTPC Ltd and Reliance Industries Ltd (RIL) has been adjourned to January 30, 2006, as the two companies could not arrive at a settlement. Therefore, the impasse between the two companies over the supply of gas to the NTPC Kawas and Gandhar power projects continues. RIL is seeking changes in the terms of the Gas Sale & Purchase Agreement (GSPA) that it has signed with NTPC for the projects. Mr Justice S.F. Vajifdar of the Bombay High Court adjourned the case as RIL sought time to file an affidavit. It would be filed by January 16 and the NTPC rejoinder to the affidavit would be filed by January 27. Lawyers from both sides attempted to arrive at some amicable solution on Friday but could not reach it. Later during the day they met Mr Justice Vajifdar in his chamber following which the matter was adjourned. NTPC in its prayer has sought an ad interim relief against Reliance Industries Ltd. Until the suit is finally disposed, NTPC wants RIL to be restrained by an order of the court from entering into any contract, arrangement or commitment for supplying 132 trillion BTU of natural gas from its KG basin gas field. It also wants execution of the contract by RIL in accordance with the bid conditions. On Thursday, in its arguments, RIL had disclosed to the court that the uncapped liability clause in the contract with NTPC was the main hitch that had resulted in making the project `unbankable' for RIL. RIL had won the contract to supply gas at a rate of $2.97 million per British Thermal Units (MBTU) to NTPC's upcoming projects in Gujarat for 17 years.
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