The Bombay High Court on Tuesday reserved its order on the dispute between NTPC and Reliance Industries on whether the RIL be allowed to modify its written statement. RIL wanted NTPC to give its views on the minutes of empowered group of ministers (eGoM) held in September 2007 on gas utilisation policy. EGoM had fixed the K-G D6 gas price at $4.20 per million British thermal unit.
However, NTPC argued that the amendments suggested by RIL were not in contention to the case and that they were aware of the eGoM decisions as per its minutes of September 12, which was prior to commencement of trial. Moreover, eGoM minutes state that it is subject to RIL-NTPC suit and hence the amendments should not be allowed.
RIL counsel argued that their stand has always been that the contract between the companies was not a concluded one. He also stated that if the plea is not amended RIL?s rights will be affected but if the amendment is allowed NTPC?s rights do not get affected. RIL also pointed out that NTPC was a government nominee as per article 21(6) and that the amendment was sought as Union of India Affidavit in the RIL-RNRL case on January 13, states that the decision on price as per eGoM meeting September 12, 2007 will be applicable to all sectors.
This point was also raised by additional solicitor general in the RIL-RNRL case where he reiterated that NTPC is a government nominee and will take supply of gas as per the decisions of the government on parametres of price, quantity and tenure based on the utilisation policy. The division bench comprising Chief Justice Swatanter Kumar and Justice Khanwalkar have reserved their order on the amendment of the plea sought by RIL.
It must be mentioned here that the RIL-NTPC case relates to whether there is a binding nature of contract between NTPC and RIL. NTPC claims that based on a conditional acceptance of the letter of intent, the contract has been concluded and RIL should be directed to supply gas. On the other hand, RIL argues that the final contract has not been concluded as issues like ?unlimited liability? on supply of alternate fuels and reserving gas for use had not been settled. NTPC filed suit in Bombay High Court on December 20, 2005, while discussions between were still on. NTPC stated the terms were binding on RIL as letter of intent can be considered as a concluded contract.