A background: in the spat over KG basin D6 gas, RIL had, during the de-merger, agreed to supply gas to RNRL at USD 2.34 per unit, a move it later backtracked on and said it could supply gas at only USD 4.2 per unit. A legal battle pursued, round one of which was won by RNRL when the Bombay High Court upheld its plea and asked RIL to honour the family MoU.
Yesterday, RIL sent a letter to RNRL saying it would not agree to a gas pact without the nod of the government. Today, RNRL wrote back a letter to the oil giant reminding it to uphold the HC verdict. The letter said: “Your (RIL’s) letter demonstrates the intention of deliberately and wantonly defying and avoiding compliance with the directions of the honorable court and delaying the implementation of the order.” The letter further said that the price at which RIL would supply gas to RNRL need not require the government’s approval.
The letter further says that the HC’s directions were clear and unambiguous and were required to be incorporated in the gas supply agreement between RIL and RNRL. “The unjust conjunction that the government approval is required for price, quantity or tenure has been unequivocally rejected by the honorable court and hence your stand in the letter is in violation of the orders of the court,” it said.
“You are requested to immediately comply with the orders of the court and co-operate in execution of a suitable and bankable agreement in co-operating the above terms in line with the Bombay High Court Judgment dated 15th June 2009,” RNRL addressed RIL.
RIL replies
Later on Wednesday evening, RIL’s spokesperson that the company had already replied to RNRL’s letter and that RIL would move the Supreme Court next week. RIL has said it does not concur with RNRL’s interpretation of the HC order and that there was no deliberate intention to delay the order’s implementation.
RNRL has replied it is ready to fight out the case in the Supreme Court.
source: NDTVPROFIT
Yesterday, RIL sent a letter to RNRL saying it would not agree to a gas pact without the nod of the government. Today, RNRL wrote back a letter to the oil giant reminding it to uphold the HC verdict. The letter said: “Your (RIL’s) letter demonstrates the intention of deliberately and wantonly defying and avoiding compliance with the directions of the honorable court and delaying the implementation of the order.” The letter further said that the price at which RIL would supply gas to RNRL need not require the government’s approval.
The letter further says that the HC’s directions were clear and unambiguous and were required to be incorporated in the gas supply agreement between RIL and RNRL. “The unjust conjunction that the government approval is required for price, quantity or tenure has been unequivocally rejected by the honorable court and hence your stand in the letter is in violation of the orders of the court,” it said.
“You are requested to immediately comply with the orders of the court and co-operate in execution of a suitable and bankable agreement in co-operating the above terms in line with the Bombay High Court Judgment dated 15th June 2009,” RNRL addressed RIL.
RIL replies
Later on Wednesday evening, RIL’s spokesperson that the company had already replied to RNRL’s letter and that RIL would move the Supreme Court next week. RIL has said it does not concur with RNRL’s interpretation of the HC order and that there was no deliberate intention to delay the order’s implementation.
RNRL has replied it is ready to fight out the case in the Supreme Court.
source: NDTVPROFIT
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