HC refuses to stay interim order in favour of RNRL

Mumbai, July 18 (UNI) A Division bench of the Bombay High Court today refused to stay an interim order by a single Judge bench, giving relief to Anil Ambani's Reliance Natural Resources limited (RNRL) persuant to a deal of gas sharing between RNRL and Mukesh Ambani-led Reliance Industries ltd.

A division bench comprising Justices J N Patel and A A Sayyed, were hearing a plea filed by RIL, challenging the single Judge order.

Senior counsel Mukul Rohatgi, appearing on behalf of RNRL, contended that Mukesh Ambani's RIL had signed a gas sharing agreement with RNRL. He pointed out to the court that the gas sharing agreement was persuant to the demerger scheme, which was undertaken after the two warring brothers decided to separate.

The gas sharing arrangement, which should have been done after the managements of respective group companies was handed over to Anil Ambani-led management, was in fact executed before Anil took over RNRL, he said.

He brought to the notice of the court that the gas sharing agreement, executed by Mukesh Ambani's management provides for allotment of 40 MMFCMD gas to the Anil Ambani-led gas based power project. It also provides for 12 MMFCMD of gas for National Thermal Power Corporation and 25 MMFCMD of gas to the RIL owned KG Basin gas project.

It was the contention of RNRL that under the sharing agreement they should have provided for itself 40 per cent of the balanced gas to be produced from the Krishna Godavari Basin, over and above the earmarked quantity.

In response to RNRL's petition, a single judge bench of the Bombay High Court restrained RIL, not to sell 40 MMFCMD of gas earmarked for RNRL to any third party and further to ensure that this earmarked quantity of gas will be available to RNRL. On a Subsequent application, the same judge ruled that all third party deals of RIL with respect to the gas, to be produced from K G Basin, shall be subject to the final outcome of this petition.

UNI