Oil and Natural Gas Corporation (ONGC) won a two-decade-old litigation in the Supreme Court last week when it directed some 10 industries in Gujarat to pay ONGC interest at the contracted rates on arrears retained by them during the long period. With this order, ONGC is expected to get around Rs 500 crore.
The gas-based industries in Gujarat had challenged the gas price hike in 1979 before the high court. It ordered ONGC to continue the gas supply at the old rate. ONGC then appealed to the Supreme Court. The apex court admitted the appeal and ordered ONGC to continue the supply on the condition that the industries did not alienate their assets. They should be made available to ONGC to realise its dues in the event of it succeeding in the appeal.
The Supreme Court later upheld the price hike. ONGC counsel R Sasiprabhu then sought interest on the differential gas price. The court has now allowed his application and asked the industries to pay the interest also.
