The government is likely to be made an intervener in the case between Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL) at the Supreme Court, in line with the latter’s petition.
RIL, in its special leave petition (SLP), has made the government a respondent in the case, which deals with the dispute between the two companies over gas supply, but RNRL claims the government cannot be a respondent, since it was only an intervener when the case was in the high court.
The Supreme Court had heard the case yesterday and sent a notice to the Ministry of Petroleum and Natural Gas (MOPNG). “We are yet to receive notice from the court. Whether we are a respondent or an intervener will be in line with the Supreme Court notice,” said a senior ministry official.
A respondent is party to a dispute, while an intervenor is asked by the court for its views on a case. While the case was being heard at the Bombay High Court last year, the government had joined as an intervener to secure permission for RIL to start gas production from its K-G Basin block.
In a letter to MOPNG, RNRL advocate Mahesh Agarwal said, “In the Supreme Court also, MOPNG has been joined by RIL in their SLP as an intervener ‘only’ and not as a party respondent, RIL has relied upon the order dated 22.10.2008 of the High Court to join MOPNG and describe it as an intervener in it's SLP.” An RIL executive, however, said it had made the government a respondent in its petition.
On June 15, the Bombay HC passed a judgement directing RIL to supply 28 million metric standard cubic metres per day (mmscmd) of gas to RNRL at a price of $2.34 per mBtu (million British thermal units). The existing consumers, that include fertiliser and power plants, are purchasing gas at $4.2 per mBtu.
RIL, however, filed a petition at the Supreme Court on July 4 that it cannot sell gas from the K-G Basin field at less than the $4.2 per mBtu set by the government, which controls prices of the fuel. The company sought a stay on the Bombay HC order.
However, in a separate petition to the apex court on July 3, RNRL said the HC had given a clear and unambiguous finding with respect to the price, quantity, tenure and key terms of the gas supply. The company has sought to prevent RIL from selling gas to other customers. The apex court will hear the matter on July 20.
