RNRL withdraws opposition to govt being a party

In a new development in the RIL-RNRL appeals in the Supreme Court today on their gas dispute, RNRL revoked its opposition to the Union government being heard. And, the Solicitor General appeared for the first time, on behalf of the government and NTPC.

Anil Ambani-controlled RNRL was so far vehemently against the court letting the central government argue on the matter, since the latter was not, it contended, a party in the Bombay High Court, whose decision led to the current appeals. These are being heard by a bench headed by Chief Justice K G Balakrishnan.

However, RNRL counsel Ram Jethmalani told the court it would no longer oppose the presence of the government. He said he would ask for the production of certain official documents and reserve the right to cross-examine certain officials in the petroleum ministry.

In the second development, Solicitor General Gopal Subramanium appeared to clarify what he said were certain misconceptions which had crept into the case. He clarified that the interests of the government and that of NTPC are identical. The government, he said, had got an application of RNRL referring to NTPC, and he was present to clarify the position.

Harish Salve, counsel for Mukesh Ambani-controlled RIL, said it was not necessary to involve NTPC and the application (of RNRL) was meant only to “create confusion”, after spreading misinformation through a prolonged advertisement campaign. Moreover, the issues involving NTPC and RIL are separately before the Bombay high court and so, the SC should not consider these at this stage.

In any case, said Salve, RNRL cannot rely on that suit, and must instead prove its case that it is entitled to the gas at the price it demands. The question being argued in the HC is different — on whether there was a concluded contract between NTPC and RIL on gas price and distribution. RNRL cannot involve NTPC to seek a suitable price.

Earlier, Vivek Tankha, additional solicitor general, said the government had explained its concerns in its affidavits to the Bombay HC during the RIL-RNRL case. So, it could not be shut out from the hearing in the SC. The production sharing contract has taken away the government’s role and resulted in one industrial group holding national assets for its own business. This cannot be permitted, he said.

Jethamalani opened his arguments for RNRL and stated that the theory of sovereign power claimed by the government has been jettisoned by the judiciary long ago. Yesterday, additional solicitor general Mohan Parasaran had relied on Article 297 of the Constitution to assert that all national assets were held in trust by the government.