The Bombay High Court on Tuesday allowed the central government to implead itself in the Mukesh Ambani-led Reliance Industries Limited (RIL) and Anil Ambani-led Reliance Natural Resources Limited (RNRL) case on gas supply after RIL and RNRL said they had no problem with the government being a party in the matter. The division bench of justices JN Patel and KK Tated are at present hearing the RIL-RNRL case over the gas supply agreement signed between the two Ambani brothers at the time of the demerger of the Reliance Group.
The court asked government lawyer TS Doabia to file an affidavit in the court on Wednesday informing that they will implead in the case. It may be noted that earlier the law ministry and the attorney general, who saw the government as an ?affected party? from the Bombay High Court stay on sale of gas from RIL?s eastern offshore D6 block, had advised the government to be a party to the case. On Tuesday in the courtroom, both the parties (RNRL and RIL) agreed to the government being a party to the case.
RIL counsel Salve said that it is in the interest of both the parties to settle the matter at the earliest and avoid the possibility of government approaching the higher court. The court told Doabia that the government has the final right on the gas block. It can even change the contractor (In this case, RIL is the contractor) or revoke in case the dispute is not settled. However, due to the ongoing dispute between the Ambani brothers, the court had earlier stayed the production of gas from the KG basin.
Earlier, the government had requested the court for lifting injunction on D6 gas sales.
RIL will not be able to start gas production unless the stay on gas sales is lifted as the fuel cannot be stored. Output from D6 holds key to bridging the gas deficit in the country. D6 will almost double the nation?s gas availability of 91 mmscmd and will help meet half of the deficit.
While RIL and RNRL are squabbling over the price of gas, the government counsel had earlier endorsed RIL?s stand that price must have government?s approval. The court will pass the formal order impleading the government as the third party to the case on Wednesday.