:Kerala High Court today restrained oil companies from increasing the price of diesel being supplied to cash-strapped Kerala State Transport Corporation till final disposal of the writ petition filed by it, seeking a direction to them to provide fuel to KSRTC at subsidised rates.
The interim order was passed by Justice V Chidambaresh after the Adovcate General assured the court that government would bear the liability of oil companies if the final verdict on the corporation's plea for subsidised fuel was dismissed.
KSRTC, in its petition, had submitted that if higher prices without subsidy were introduced by oil companies considering it as a bulk consumer, the corporation would suffer a loss of Rs 18 crore per month.
More From This Section
Following this, the court asked the government to stand as surety for the excess liability, if any, during the interim period.