SC reserves verdict in gas row

The Supreme Court on Friday reserved its verdict on the high-profile legal dispute between the Ambani brothers on the issue of gas supply involving Mukesh Ambani-led RIL and Anil Ambani-led Reliance Natural Resources Limited (RNRL).

The Supreme Court on Friday reserved its verdict on the high-profile legal dispute between the Ambani brothers on the issue of gas supply involving Mukesh Ambani-led Reliance Industries Limited (RIL) and Anil Ambani-led Reliance Natural Resources Limited (RNRL).

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A bench headed by Chief Justice K.G. Balakrishnan reserved the orders after both sides and the government concluded their arguments that lasted 27 days spread over nine weeks.

During the arguments, RNRL counsel Ram Jethmalani and Mukul Rohtagi made a pleaded before the bench for a direction to RIL to supply gas from the Krishna-Godavari basin for 17 years at a price of $2.34 (Rs 109.5) per unit.

RNRL’s lawyer argued that RIL was obliged to supply them the gas as per the family agreement that divided assets between the brothers, saying it was binding and supported by the court-ratified statutory scheme of business reorganisation.

Appearing for RIL, senior counsel Harish Salve, however, contended his client was not “reneging” from its commitment to supply gas. He added any deal between the two firms needed government approval as per the terms of the Production Sharing Agreement (PSC).He said there was no breach of contract of supplying gas. But, the same has to be subjected to government approval.

Appearing for the Centre, Solicitor General Gopal Subramanium asserted the government was the sole owner of the gas under sovereign powers and the brothers cannot enter into a scheme on it.