SC rejects NTPC plea to stop RIL from changing petition
Press Trust of India / New Delhi Oct 01, 2009, 19:51 IST
The Supreme Court today refused to halt the Bombay High Court's decision that allowed Mukesh Ambani-led Reliance Industries (RIL) to amend its plea on a gas supply deal with PSU NTPC at a committed price citing government policy.
"These days the courts are very liberal in allowing amendments... You will get an opportunity," the bench headed by Chief Justice K G Balakrishnan said, while reassuring the PSU that it would get its chance to file a reply.
NTPC had moved the apex court challenging the high court's decision allowing RIL to amend its petition to the effect that the government's policy on pricing of gas would frustrate its contract to supply gas at a price of $2.34 per mmBtu it had quoted in a 2004 global tender.
The decision comes ahead of the commencement of final hearing on October 20 on the dispute between the Ambani brothers over gas supply and price. The court would also hear the government's petition on the matter.
RIL is citing a 2007 decision of the empowered Group of Ministers that approved $4.20 per mmBtu as price for gas from RIL's KG-D6 fields as a stumbling block for selling gas at the price it bid in 2004.
Anil Ambani-led Reliance Natural Resources is fighting RIL on a similar count, arguing that it cannot renege on the agreement citing government's stand on pricing.
NTPC had taken RIL to court after they failed to conclude the contract.
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