Though Senior Counsel Harish Salve concluded his arguments in the Ambani brothers’ case on the eleventh day today in the Supreme Court, another counsel for the RIL started arguments challenging the Bombay High Court’s judgment on the sharing of gas from the K-G basin.
Senior Counsel R F Nariman read out Sections 391 to 394 of the Companies Act to argue that the High Court was wrong in directing the implementation of the scheme. The Memorandum of Understanding (MoU) in the family was not a “suitable arrangement”, he reiterated, and it had not been crystallised into a scheme.
Earlier, Harish Salve said that the central government, which was not a party in the High Court, should be heard in this case as it was the custodian of public interest.
RNRL Counsel Ram Jethmalani is opposed to the government’s appeal, as it had withdrawn its affidavits when RNRL wanted to cross examine certain officers. When he said that they developed “cold feet”, Additional Solicitor General Mohan Parasaran said that the government will argue on the main issues, like public interest, and not on “trivial matters” stated by Jethmalani.
Yesterday, Jethmalani had asked the court to allow him to examine the directors of RIL who had filed affidavits stating that they were not aware of the contents of the MoU. Jethmalani had opposed the government’s stand in the appeal. Normally, cross-examination is done in the trial court and the Supreme Court goes only through documents and oral arguments.
The arguments of RIL will resume next Tuesday, upsetting the earlier schedule set for the hearing. It was supposed to end around November 17. However, even one side is yet to finish its arguments. The government is likely to take the stage on Wednesday, when RNRL is likely to challenge its standing.
In the two-month long fight in the Supreme Court, the Ambani brothers are disputing the pricing and sharing of the gas from the K-G basin. While RNRL is seeking gas from RIL at a committed price of $2.34 per million British thermal unit (mBtu), RIL says it cannot honour the commitment made in the family agreement due to the government’s pricing and gas policies.
The government also filed an appeal against the Bombay High Court order of July 15 that directed RIL to supply 28 million standard cubic metres a day (mscmd) of gas to RNRL for 17 years at $2.34 mBtu. The government, in its petition, had stated that it was aggrieved by the High Court order as gas was its property and RIL, as contractor, does not have rights to utilise the gas, which could be sold only at a price approved by the government.
