RIL putting off negotiations, claims RNR counsel

24 Jun 2009

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Reliance Natural Resources, the Anil Ambani group company which is pumping gas from its find in the Krishna-Godavari basin, has written two letters to brother and rival Mukesh Ambani's Reliance Industries Ltd seeking to settle the dispute over pricing of gas.

"We have written two letters to Reliance Industries, asking them to sit across the table to thrash out the three-four relevant clauses so that they can be put in the agreement," RNRL counsel Mukul Rohatgi told CNBC TV18 on Wednesday.

"This as you know was directed by the high court that we should first try and sit across the table failing which we should ask Kokilaben, the mother to intervene if necessary, and otherwise one will have to have legal recourse against the defaulting party," Rohatgi said.

He added that Reliance Industries has said it is still studying the implications of this judgment. "The judgment was delivered 10 days ago yet we do not know what they are doing. So the reply is kind of noncommittal and this is especially so when only 30 days time was given by the high court," Rohatgi said.

The counsel said the company expected Reliance Industries to abide by the court ruling and insert clauses ruled in RNRL's favour. "There is no question of adopting middle ground. We expect Reliance Industries to insert clauses of NTPC agreement in the contract."

Reliance Industries is reportedly planning to file an appeal with the Supreme Court over the issue. "If they do that then certainly the battle will shift to the highest battleground and then the Supreme Court will decide what it is," said Rohtagi.

RNRL was assured of gas supply of 28 million metric standard cubic metres per day from the Krishna-Godavari hydrocarbon basin for 17 years after the Bombay High Court ruled in its favour 15 June.

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