SC grants NTPC chance to oppose RIL amendment

The Supreme Court has granted NTPC Ltd a chance to oppose the amendment made by Reliance Industries Ltd (RIL) in the Bombay High Court, where the dispute between the two companies is pending over gas pricing.

Though the apex court dismissed the appeal of the public sector company against the High Court order allowing the amendment, a Bench headed by Chief Justice K G Balakrishnan allowed it to file statements opposing the order. The Supreme Court also “expedited” the proceedings in the High Court, where the trial is already on.

During the heated arguments initiated by Solicitor General Gopal Subramaniam, the Chief Justice remarked that the issue was highly technical involving procedures laid down in the Civil Procedure Code and the High Court rules. He also said NTPC would get an opportunity to oppose the amendment and the public sector company will not suffer any prejudice. In view of this, the Supreme Court did not disturb the High Court decision.

NTPC had moved the Supreme Court challenging the Bombay High Court’s decision that allowed Mukesh Ambani-owned RIL to amend its petition on the gas dispute saying the government’s policy on pricing of gas would frustrate its contract with the PSU. NTPC had moved the High Court seeking 12 mmscmd (million metric standard cubic metres a day) of gas from RIL, which had emerged as the winner in an international competitive bid quoting a price of $2.34 per mBtu (million British thermal unit).

But, according to RIL, the government’s policy on gas utilisation could now frustrate the deal. The Solicitor General clarified that this dispute has nothing to do with the litigation between the two Ambani brothers. He argued mainly on the legality of the amendment allowed by the division Bench of the High Court.

According to him, the amendment could not have been allowed while the trial was already on. The High Court rules cannot supersede the provisions of the Civil Procedure Code, he contended.