(Business Standard)
The restraint on Reliance Industries to sell natural gas from its eastern offshore KG-D6 field to third parties will continue till July 22, after the Bombay High Court today ordered status quo to be maintained in the case filed by Anil Ambani Group firm RNRL.
A Bombay High Court division bench fixed July 22 as the next date of hearing in the dispute over implementation of a gas supply agreement between Mukesh Ambani-led Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL).
The court had previously asked RIL not to enter into contracts to sell KG-D6 gas with companies other than RNRL and state-run NTPC and asked the two brothers to settle the dispute within four months. But the two sides failed to reach an agreement within the stipulated time frame.
At the hearing today, RIL counsel Harish Salve argued that the earlier interim order, restraining RIL from selling gas to third party, had lapsed.
He said that RIL would start gas production from KG-D6 by end of July, and requested it be allowed to enter into contracts with third parties for sale of gas.
Drawing from the June 2005 family demerger agreement, RNRL claimed at least half of the 80 million standard cubic meters per day peak production planned from KG-D6 fields.
RNRL lawyer Ram Jethmalani strongly opposed Salve's plea, saying there was a strong possibility of appeals never getting disposed of if RIL was permitted to sign contracts.
Finally, the division bench of Justices J N Patel and V M Kanade said that status quo will be maintained till July 22.
The restraint on Reliance Industries to sell natural gas from its eastern offshore KG-D6 field to third parties will continue till July 22, after the Bombay High Court today ordered status quo to be maintained in the case filed by Anil Ambani Group firm RNRL.
A Bombay High Court division bench fixed July 22 as the next date of hearing in the dispute over implementation of a gas supply agreement between Mukesh Ambani-led Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL).
The court had previously asked RIL not to enter into contracts to sell KG-D6 gas with companies other than RNRL and state-run NTPC and asked the two brothers to settle the dispute within four months. But the two sides failed to reach an agreement within the stipulated time frame.
At the hearing today, RIL counsel Harish Salve argued that the earlier interim order, restraining RIL from selling gas to third party, had lapsed.
He said that RIL would start gas production from KG-D6 by end of July, and requested it be allowed to enter into contracts with third parties for sale of gas.
Drawing from the June 2005 family demerger agreement, RNRL claimed at least half of the 80 million standard cubic meters per day peak production planned from KG-D6 fields.
RNRL lawyer Ram Jethmalani strongly opposed Salve's plea, saying there was a strong possibility of appeals never getting disposed of if RIL was permitted to sign contracts.
Finally, the division bench of Justices J N Patel and V M Kanade said that status quo will be maintained till July 22.
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