Law Minister M Verappa Moily today hailed the Supreme Court verdict in the RIL-RNRL gas dispute case as a "vindication of the government's sovereign and constitutional rights" over natural gas resources of the country.
"Which side the judgment has gone, I am not making any comment on that. But it is very clear that the stand, which was taken by the government, particularly the Petroleum and Natural Gas Ministry, has been vindicated and reiterated by the Supreme Court," Moily said reacting to the judgment passed by the apex court.
The apex court, the Minister said, very clearly stated that government policy would prevail over any private agreement or contract.
"The government is the absolute owner of natural gas and it is not only a sovereign right, but also a constitutional right. And in exercise of the right, government can regulate the supply, tenure, pricing, quality, quantity and class of customers and variety of other matters," he said.
The Supreme Court had earlier in the day rejected the division of gas under an agreement within the Ambani family, stating it was the government's right to decide the price and utilisation of the fuel as it is a national asset.
The verdict was delivered by a bench headed by Chief Justice K G Balakrishnan on the four-year dispute between Mukesh Ambani's Reliance Industries Limited (RIL) and Anil Ambani's Reliance Natural Resources Limited (RNRL).
On behalf of the bench, Justice P Sathasivam said the production sharing contract overrode all other agreements and the family agreement -- signed among Ambani brothers and their mother Kokilaben -- was not legally and technically binding.
Noting that the case had now been relegated to the Bombay High court, Moily said the Ambani brothers could now renegotiate the contract and submit a fresh proposal before the company court in Mumbai, which would determine whether it was in accordance with the government policies and pass suitable orders.
"The government naturally has a right to be heard in the matter in the company court. So the government will not side with any corporate bodies. The government has a stand and particularly in natural commodities like gas, we have restated our right, which is a natural right on a commodity. It is not only a sovereign right, but also a constitutional right," he added.
