Bombay high court asks Reliance Industries Ltd and Reliance Natural Resources Ltd, to rework gas agreement
15 October 2007Mumbai: The Bombay High Court has asked Reliance Industries Ltd and Reliance Natural Resources Ltd, led by the feuding Ambani brothers, Mukesh Ambani and his younger brorther Anil Ambani, respectively, to renegotiate their gas pact and come up with a "bankable" gas supply master agreement within four months.
Delivering the order, Justice A V Mohta said the existing gas supply master agreement between RIL and RNRL is one-sided and favours elder brother Mukesh Ambani''s Reliance Industries.
The court directed the companies to conduct negotiations as per the memorandum of understanding (MoU) signed by the two brothers before the partition of the business group.
The order said the companies should come back to the court in four months'' time with a report on the renegotiations.
The court has also restrained Reliance Industries from selling gas during the interim period of four months. The high court, in its order on June 20, had prevented RIL from creating any third party interest in its gas from the D6 block in the Krishna-Godavari basin as the peak production of 80 mcmd of gas is locked up with NTPC, RNRL and for RIL''s captive use.
The court had said NTPC would get first right to 12 million cubic metres per day (mcmd) gas from the block, while RNRL would get the next right to 28 mcmd of gas.
Mukesh Amabni-led Reliance Industries Limited (RIL) and Anil Ambani''s Reliance Natural Resources Limited (RNRL) have been locked in a legal battle over terms of GSMA, under which RIL is to supply gas from Krishna-Godavari fields to RNRL.