Gail told to resume supply to Essar Steel

The Supreme Court has directed GAIL India to resume natural gas supply to Essar Steel and has asked the latter to pay GAIL Rs 40 crore in an interim order.

The Supreme Court's interim order dated June 21 had asked GAIL to resume gas supply "not later than June 22".

The court had also asked Essar Steel to file an undertaking before its registrar general "within two days to the effect that they will pay Rs 40 crore within two weeks from June 21".

In its special leave petition, Essar Steel had submitted that natural gas supply to it had been disconnected from June 19 and that without the gas it would be difficult to run the company employing 6,000 people.

GAIL submitted that Essar Steel had committed a default of more than Rs 124 crore with an interest of 25 per cent on it. It said despite repeated undertakings given by Essar Steel before the Gujarat High Court, it had not complied with them.

The Supreme Court has posted the matter on July 7 for passing further orders. It directed Essar to continue paying its current dues.