SC AMBANI 2

The bench, headed by CJI Balakrishnan who will be
demitting office on May 11, also said that the Ambani family
MoU can only be a means of arriving at suitable arrangement
but cannot be the sole means for a suitable arrangement.
Contrary to speculation that the judgement could be
split, the bench held that since the MoU had not been made
public, it doesn't fall in the corporate domain.
Concurring with the judgement, Justice B Sudershan Reddy,
who replaced Justice P Raveendran after he recused in November
2009 citing conflict of interest, said that the family MoU
cannot be taken into consideration at all.
After a bitter public battle over division of Reliance
empire, less than two years of Ambani family patriarch
Dhirubhai's death, Mukesh and Anil reached a family settlement
spelt out by mother Kokilaben in June 2005.
As per the settlement, the energy and petrochemicals
business went to Mukesh and the power, financial services and
telecom business to Anil.
Accordingly, the scheme of de-merger approved by the
Bombay High Court in December 2005, paving the way for
creation of a new entity -- Anil Dhirubhai Ambani group.
However, the bitterness between the two brothers did not
cease and the two sides were constantly engaged in public and
courtroom battles, with gas dispute reaching the flash point.
ADAG firm RNRL had sought gas from RIL to power its
proposed 7,800 MW electricity plant at Dadri in northern state
Uttar Pradesh.
The Bombay High Court had last year directed RIL to reach
an amicable agreement with RNRL for gas supply as per the
family MoU.
Although the apex court said that the petition filed by
RNRL was maintainable, as the company court had sanctioned the
original demerger scheme, it held that the "gas is government
asset till it reaches consumer."
The court, however, also made it clear that RIL did not
have absolute marketing right over gas and in the face of the
bench's observation, the Anil Ambani group's claim to over 28
mmscmd of gas for 17 years is likely to go back to the
negotiating table.
"The court has asked us to renegotiate... that is what we
are going to do. The court has given us some time," Reliance
Industries Executive Director P M S Prasad told reporters.
The court earlier said that a suitable arrangement must
not be suitable only for RIL, but also for shareholders of
RNRL and it's RIL's obligation to look after it. MORE PTI RKS
RBT


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