Business Daily from THE HINDU group of publications
Friday, Aug 24, 2007
ePaper
Business Daily from THE HINDU group of publications Friday, Aug 24, 2007 ePaper |
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Corporate
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Corporate Disputes Industry & Economy - Petroleum
Our Bureau Mumbai, Aug. 23 The arguments in the case relating to the sharing of natural gas from KG basin between Anil Ambani group led Reliance Natural Resources Ltd and Mukesh Ambani group flagship Reliance Industries Ltd came to a close in the Bombay High Court on Thursday. Reliance Natural Resources Ltd (RNRL) has sought ‘suitable changes’ in the current gas sharing agreement which currently exist between the two companies. RNRL counsel, Mr Mukul Rohatgi, argued that the current agreement was unilateral and biased towards Reliance Industries Ltd (RIL). It was created when RIL was controlling both the companies. He emphasised the point that the liability clause in the agreement was not acceptable as it placed cap on the liability, he said. Mr Rohatgi said that formula devised for pricing gas was an artificial formula. The clauses in the agreement were not internationally followed and were escape routes, he said. Counsel for RIL, Mr Harish Salve, said that if there were no cap on the liability then RIL would have to pay Rs 60,000 crore as ‘contingent liability’. “ I (RIL) cannot not have an unlimited liability for 17 years,” Mr Salve said. Mr Salve said that what RNRL really wants from RIL is not suitable arrangement but a suitable subsidy for the natural gas, he said.
Related Stories: Ambanis court battle centres on production sharing contract RNRL seeks changes in gas supply pact with Reliance Decision on KG gas pricing within a month RIL to make presentation on K-G gas price formula Reliance says Anil Ambani co seeking gas for ‘trading in’ More Stories on : Corporate Disputes | Petroleum | Courts/Legal Issues | Reliance Industries Ltd
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