RIL, NTPC ready for out-of-court settlement

Reliance Industries and state-owned NTPC, which are embroiled in a dispute over supply of KG basin gas, told the Bombay High Court on Monday that they are willing to go for an out-of-court settlement to resolve their dispute.

Milind Sathe, counsel for Reliance Industries, said they are willing to make one last attempt to resolve the dispute with NTPC. "Considering the nature of dispute, the two parties to the contract can make a last attempt to resolve the dispute," Sathe said.

Sathe's remark was in line with Justice R Y Ganoo's observation that, "There exists a valid, concluded and binding contract of a natural gas supply for 17 years by Reliance Industries to NTPC, and if the reply to this is affirmative, the suit is not maintainable."

The case is now adjourned to November 11, 2008.

NTPC and Mukesh Ambani promoted RIL, are embroiled in a legal battle in Bombay High Court since December 2005 over the latter's claim that it has only signed a Letter of Intent (LoI) with NTPC and does not have a concluded contract with the power company.