The court had on March 21, through an interim order, restrained oil companies from selling diesel at higher price to KSRTC till final disposal of the writ petition filed by the corporation seeking the fuel at subsidised rates.
The Advocate General had informed the court that government would bear the liability of oil companies if the final verdict on the corporation's plea for subsidised fuel was dismissed.
The water transport department had approached the court seeking not to enforce the government order hiking diesel prices for bulk users such as railways and transport corporations.
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