Anil group firm moves SC to become party to NTPC-RIL case

Anil Ambani group company RNRL on Monday sought the Supreme Court's permission to be a party to power PSU NTPC's case against Reliance Industries for getting gas at a contracted price, saying its case against the Mukesh Ambani-led firm was similar.

"Since the issues that arise in the case filed by NTPC in the Supreme Court directly affect the case of RNRL against RIL, it is just and necessary that RNRL is permitted to be impleaded as a party in the present case," Reliance Natural Resources said in its application for intervention.

Listing out a number of issues that are "common" in the cases instituted by NTPC and RNRL against Reliance Industries for enforcement of an agreement to supply gas, RNRL said: "RIL is relying upon the pleadings in RIL Vs RNRL case to support its defence against NTPC."

Therefore, any decision on NTPC's petition, filed on September 5, would have a bearing on RNRL's case already pending before the Supreme Court, the application said.

Both RIL and RNRL have filed cross-appeals on a June 15 judgement of Bombay high court that asked RIL to give gas at $2.34 per mmBtu and suggested the two firms to reach an enabling agreement for the same.

The apex court would commence hearing on October 20 on these appeals, as also a related petition filed by the government. NTPC's petition, challenging a Bombay high court decision that allowed RIL to amend its petition on th gas dispute citing the government's pricing policy, is yet to be heard by the apex court.

A Division Bench of the High Court had allowed amendment to the petition wherein RIL had prayed that the government's gas pricing policy would frustrate its contract with NTPC.

NTPC had moved the Bombay High Court seeking 12 mmscmd gas from RIL which had emerged winner in a global competitive bid quoting a price of $2.34 per mmBtu.

In its application, RNRL also quoted an eGoM decision of August 2008:  "The minister of law clarified that the two cases between RIL Vs NTPC and RIL Vs RNRL were separate contracts between supplier and different companies. We have to keep these cases beyond the scope of our deliberations and take a decision in general on NELP pricing issue."

It said that the defences raised by RIL by way of amendment to its written statement in the NTPC suit in Bombay high court were an issue in the petition filed by the Mukesh Ambani-led firm against RNRL.

Listing out the common issues between the two cases, RNRL said: "RIL is abusing the process of law to frustrate the lawful commitments made by it to satisfy the commercial greed... RIL is making one pretext or other to wriggle out of its commitment to supply gas to NTPC and RNRL."