New Delhi: The Supreme Court on Friday, passed an interim order for GAIL (India) Ltd to supply 0.25 million standard cubic metre per day (mscmd) of gas each to Adani Energy Ltd and Haryana City Gas Suppliers Ltd, or HCGSL, within two weeks for compressed natural gas (CNG) sale for automobiles in Haryana.
This breaks the one-and-a-half-year deadlock between GAIL, the state governments of Haryana and Uttar Pradesh and private sector companies such as Adani Energy and HCGSL over the supply of CNG in the suburbs of Gurgaon and Faridabad. Till date, this was reserved for Indraprastha Gas Ltd (IGL), a Gail’s subsidiary. The order has, however, left out Noida.
U.D. Choubey, chairman and managing director, declined comment citing inability to do so without reading the order.
- Malathi Nayak and Utpal Bhaskar
NBFC gets nod to trade in insurance policies
New Delhi: The Supreme Court on Friday, through an interim order, asked the Life Insurance Corporation of India, or LIC, to allow a non-banking finance company, Bachraj Finance Pvt. Ltd (BFPL), to trade in insurance policies. It also asked BFPL to provide an undertaking as a safeguard.
In 2007, BFPL and a trading concern Insure Policy Plus Services Pvt. Ltd (IPPS), both traders in insurance policies, had challenged circulars of the LIC that barred its policies from being transferred or assigned to a third party, which traded in insurance policies before the Bombay high court.
Transfer or assignment means a policy holder can transfer his interest in the life insurance policy to another person or institution. This could be as security for a loan or just cash to make payments of the premium.
The high court quashed the circulars through its judgement in March 2007 and ruled that life insurance policies can be traded and assigned freely. Pursuant to this, the LIC approached the Supreme Court.
On Friday, the court in an interim order directed LIC to register the transfer or assignment of policies to BFPL. This, however, would be subject to BFPL filing an undertaking in four weeks that while the matter was pending, the company would not file a death claim with the LIC on the demise of a policy holder or raise funds in its favour, the bench held.
The court also set the next date of hearing on November 5.
The bench did not grant this relief to IIPS, stating it was a trading company and not an NBFC that is regulated by the Reserve Bank of India Act. It asked IIPS to submit information on its structure, last three years IT returns and financial statements in three weeks time.
- Malathi Nayak