Reliance gas dispute case to be heard dailyJuly 23rd, 2008 - 9:55 pm ICT by IANS
Mumbai, July 23 (IANS) The Bombay High Court will hear on daily basis the dispute over gas supplies from the Krishna-Godavari basin between the Anil Ambani-led Reliance Natural Resources Ltd (RNRL) and Mukesh Ambani’s Reliance Industries Ltd (RIL) from Thursday. “The case will be heard by the court for two hours on a daily basis,” a spokesperson of Reliance Infrastructure, a sister company of RNRL, said.
The court Tuesday adjourned the hearing by a day after RNRL said the case should be heard by the Chief Justice of the Bombay High Court.
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 revolves round 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 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 time frame.
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.