The bench headed by Chief Justice K G Balakrishnan said the two parties could arrive at a "suitable arrangement" through arbitration, as the Bombay High Court that approved the Reliance empire's demerger cannot spell what is the ideal arrangement.
Mukesh Ambani-run RIL told the court that it considered the government's gas utilisation and pricing policy as the "suitable arrangement."
Senior counsel Harish Salve also opposed RNRL's plea for dismissing RIL's petition, saying only his client's creditors or members of the Board can challenge maintainability of the petition.
According to Salve, RNRL was a third party and hence, cannot seek dismissal of RIL's plea. RNRL has also separately challenged the government's petition in the dispute.