Hearing on dispute over Reliance gas adjourned till Wednesday

July 22nd, 2008 - 9:08 pm ICT by IANS  

Mumbai, July 22 (IANS) The Bombay High Court Tuesday adjourned by a day the hearing of a dispute between Anil Ambani-led Reliance Natural Resources Ltd (RNRL) and Mukesh Ambani’s Reliance Industries Ltd (RIL) over gas supplies from the Krishna-Godavari basin. The hearing was postponed after RNRL appealed to the court that the matter should be heard by the chief justice of the Bombay High Court, a spokesperson of Reliance Infrastructure, a sister company of RNRL, told IANS.

“The division bench directed the counsels appearing for the two sides to mention the matter before the chief justice of the Bombay High Court Wednesday,” he said.

In the last hearing held in May, the court had ordered a status quo to be maintained till the next hearing July 22.

The dispute revolved around a pact between RNRL and RIL on which firm has the rights over the gas supplies and at what price.

The earlier interim order, in which the court restrained RIL from selling the gas or from entering into any contract with a third party, has lapsed. RIL was subsequently planning to start production from the basin.

The court had also restrained RIL from entering into contracts to sell the gas from this basin - known in official jargon as KG-D6 gas - with companies other than RNRL and the state-run National Thermal Power Corp (NTPC).

It had also asked the two sides to settle the dispute within four months, but they failed to reach an agreement within the stipulated timeframe.

RNRL has claimed at least half of the 80 million standard cubic metres of gas per day that is envisaged from the fields off the Andhra Pradesh coast - said to be the country’s biggest source of hydrocarbons today.

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