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Rahul Wadke

Mumbai, Oct. 21 The division bench of the Bombay High Court on Tuesday allowed Government of India to be a party to the ongoing dispute between RIL and RNRL over sharing of natural gas from KG basin fields.

RNRL, which had earlier opposed the move, changed its stand and has not objected to the Government becoming a party at the current stage of the case.

Counsel for RNRL, Mr Mukul Rohatgi, said that if the government is not heard at the High Court stage and if the matter reaches the Supreme Court, the highest court could take a view that the government should have been heard at High Court level. In that case the court might refer the matter back to the High Court. Therefore, to save time, the company (RNRL) has agreed to the government plea for becoming a party to the case, he said.

Counsel for RIL, Mr Harish Salve, said the bench should give the government the opportuntity to put forth its case. Otherwise in the Supreme Court the government could say that it was not heard properly in the lower court.

The Government counsel, Mr T.S. Doabia, said that the only issue the government is worried about is the price at which the gas is to be sold and its approval. It is not concerned with the MoU between RIL and RNRL, he said.

The government in its petition field in April 2008 wanted vacation of the interim order of May 3, 2007 that restrained RIL from creating any third party rights and use or supply of gas committed to RNRL.

The Government said that it is a major stakeholder under the Production Sharing Contract (PSC) for RIL’s K-G basin gas. The PSC is between the Government and RIL. A private dispute between the RIL and RNRL cannot threaten the interests of the Government.

Mr Justice J N Patel, who is hearing the case, said the bench has accepted the ‘chamber summons’ (a procedure of approaching the court) of the Government through the Union Ministry of Petroleum and Natural Gas. The government must file an affidavit and the officer concerned must be present in the court.

More Stories on : Petroleum | Corporate Disputes | Reliance Industries Ltd | Courts/Legal Issues

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