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| RIL-NTPC case: HC to decide on amendment plea after two weeks |
| Press Trust of India / Mumbai Jun 17, 2009, 15:42 IST |
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Bombay High Court today said that it would decide whether to allow Reliance Industries (RIL) to amend its plea in its suit with NTPC over gas supply contract after two weeks.
Through the amendment, RIL wants to argue that following the government's policy on pricing and allocation of KG basin gas, RIL-NTPC contract stands "frustrated".
RIL and NTPC negotiated a contract for supply of gas from RIL's KG basin reserves in 2003-2004, but RIL later took the stand that contract was not yet concluded.
NTPC then moved High Court, saying that the contract was sewn up, and RIL should implement it.
As per the contract, RIL is supposed to supply 12 mmscmd of gas to NTPC at $2.34 per mmBtu for 17 years.
RIL now wants to amend its petition, to take a fresh stand that even if it had a valid contract with NTPC, because of government's latest decisions regarding KG basin gas, the contract would be frustrated.
Central government had filed an affidavit in the High Court in RIL-RNRL case in January this year, stating decisions of Empowered Group Of Ministers on KG gas pricing and allocation.
EGoM had said, in particular, that KG basin gas won't be sold for less than $4.20 per mmBtu.
RIL wants to rely on this affidavit in its case with NTPC. NTPC, on the other hand, says EGoM decisions were not relevant, as EGoM had clearly noted that its decisions were "without prejudice" to RIL-NTPC case pending before the High Court.
The division bench of Chief Justice Swatanter Kumar and Justice S C Dharmadhikari today said that it would decide whether to allow RIL take a new stand after two weeks.
Single judge of High Court had earlier allowed RIL to amend the petition, but had stayed its own order for six weeks to enable NTPC file appeal. This stay has been extended for further two weeks by the division bench.
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