SC-LDALL AMBANI 2LST

Shares of Reliance Industries rose 2.3 per cent to Rs
1033.85 and surged to Rs 1,060 intra-day, the highest in a
week, while RNRL was down 23 per cent at Rs 52.75. It touched
a 52-week low of Rs 50.
Shares of other Anil Ambani group companies too took a
hit. RCom fell 2.7 per cent, RCap 3.7 per cent, RInfra 7 per
cent, Reliance Media Works 5 per cent and RPower 9 per cent in
a generally weak market.
RNRL had approached the Supreme Court last year seeking a
direction to RIL to implement the Bombay High Court order that
had asked the two to amicably rework the gas supply agreement.
Justice Reddy said the courts had erred in "directing the
MoU to be binding and the basis for further negotiations
between the parties. MoU is a private pact between the Ambani
family which is not binding on RIL."
The bench held that the "contents of the MoU were not
made public, and even in the present proceedings, they were
revealed in parts. Clearly, the MoU does not fall under the
corporate domain."
The court said that "the terms of the Production Sharing
Contract will have over-riding effect; The parties cannot
violate the policy of the government in the form of the Gas
Utilisation Policy and national interests."
The Ambani family MoU was worked out in June 2005 as part
of division of the Reliance business empire, less than three
years after death of Ambani family patriarch Dhirubhai.
As per the settlement, the energy and petrochemicals
business went to Mukesh and the power, financial services and
telecom business to Anil.
Anil group firm RNRL sought gas from RIL for firing group
firm RPower's proposed 7,800 MW power plant in Dadri, Uttar
Pradesh state in north India.
While RIL is the contractor of the KG-D6 fields, the
court made it clear that RIL did not have absolute marketing
right over gas.
"Which side the judgment has gone? I am not making any
comment on that. But it is very clear that the stand, which
was taken by the government, particularly the Petroleum and
Natural Gas Ministry, has been vindicated and reiterated by
the Supreme Court," Law Minister Veerapa Moily told reporters.
Power Minister Sushil Kumar Shinde said that the RIL-RNRL
verdict had no bearing on the gas supply dispute between NTPC
and Reliance Industries.
The rate RNRL is claiming is the same that RIL had bid in
a 2004 NTPC tender to supply 12 million standard cubic meters
per day of gas to the state utility.
The RIl-NTPC contract could not be concluded over
differences on terms and NTPC has dragged RIL to Bombay High
Court seeking performance of the contract. PTI RKS
MRD


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