A three-member Supreme Court bench, headed by Chief Justice K.G. Balakrishnan, will on Tuesday commence the final hearing in the case between Mukesh Ambani-owned Reliance Industries Ltd (RIL) and Anil Ambani’s Reliance Natural Resources Ltd (RNRL) in the dispute over the supply of gas from RIL’s D6 block in the Krishna-Godavari (KG) basin.
Also See Key milestones in the legal dispute (PDF)
On Monday, the Union government, in a reply to RNRL’s contention, asserted its right to file a petition in the Supreme Court against the Bombay high court verdict of 15 June, claiming the high court verdict had adversely affected its sovereign rights over natural gas. The Bombay high court had ruled that RIL should honour a June 2005 family agreement to supply 28 million cu. m per day (mscmd) of gas at $2.34 per million British thermal unit (mmBtu) for 17 years to RNRL. While RNRL has sought the apex court’s intervention for the immediate supply of gas, RIL, in its affidavit, has opposed this, stating that the price is 44% lower than that mandated by the government and it cannot supply gas at a price not approved by the government and to a user not listed in the country’s gas utilization policy.