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The Kerala High Court today restrained oil companies from increasing the price of diesel being supplied to cash-strapped Kerala State Road Transport Corporation till final disposal of the writ petition filed by it, seeking a direction to them to provide fuel to KSRTC at subsidised rates.
The interim order was passed by the Justice V Chidambaresh after the Adovcate General assured the court that government would bear the liability of oil companies if the final verdict on the corporation’s plea for subsidised fuel was dismissed.
The KSRTC, in its petition, had submitted that if higher prices without subsidy were introduced by oil companies considering it as a bulk consumer, the corporation would suffer a loss of Rs 18 crore per month.
During the hearing, counsel for oil companies had raised the apprehension that they might not be able to recover the difference in rates if the Corporation’s petition was finally dismissed.
Following this, the court asked the government to stand as surety for the excess liability, if any, during the interim period.
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