The Hindu Business Line : Gas issue: RIL rules out out-of-court settlement

Mumbai, Oct. 6 The division bench of the Bombay High Court on Monday suggested that the ongoing case between the Ambani brothers, feuding over sharing of natural gas, could be settled with the help of an independent body.

RIL, led by Mr Mukesh Ambani, and RNRL, led by Mr Anil Ambani, are fighting over sharing of natural gas from RIL controlled KG basin gas fields.

The bench of Mr Justice J.N. Patel and Mr Justice K.K. Tated, which is hearing the case, said that the two companies could work out a suitable arrangement with the help of a neutral body, which could help resolve the issue.

Replying to the suggestion, Mr Harish Salve, Senior Counsel for RIL, said that the matter cannot be resolved by independent body as the issue is not technical in nature. It needs judicial intervention, he said.

In the course of the argument, Mr Salve said that Government of India last year fixed the price of natural gas at $4.20 per million British thermal unit (mbtu). If RIL sells gas to RNRL at the earlier fixed price of $2.34 it would incur a huge loss. RIL’s entire calculations are the based on the government fixed price, he said.

Family Mou

The family memorandum of understanding between the two brothers continues to remain the main point of argument in the case. The MoU is the foundation on which the Reliance empire was split. Till date, the MoU document has never been place before court in the ongoing case by either RIL or RNRL.

In his earlier submission before the court senior counsel for RNRL, Mr Ram Jethmalani, had said that the company was willing to share the details of the MoU, which relates to the sharing of natural gas between the companies. It can place before the court an unsigned copy along with an affidavit.

Arguing against placing of the MoU at the current stage of the case, Mr Salve said that it is up to the court to decide whether the MoU can be admitted or not.

Earlier, RNRL chose not to submit the MoU document and now it wants to submit it, which has lead to a very piquant situation, he said.

Mr Salve said that the MoU as a document has not been pleaded before the court. The document should have been pleaded and added in the list of documents along with plaint. During the arguments by RNRL, the MoU was not pleaded nor were its bindings pleaded, he said.

Referring to the ongoing suit between RIL and NTPC over sale of natural gas, Mr Salve said that in the eventuality of decree in the case, RIL will approach the Government of India for approving the gas price of $2.34 per mmbtu. Whether the company will get the price approved for the government is not known, he said.

Related Stories:
HC adjourns RIL, RNRL hearing till Oct 6
‘Efforts to settle gas supply row with RIL were thwarted’

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