Supreme court reserves verdict on GAIL’s appeal

GAIL has challenged the Gujarat high court’s order which prevented it from severing tied with Gujarat state petroleum corporation

GN Bureau | September 6, 2013



The wait just got prolonged for GAIL (India) when on Thursday the supreme court reserved its verdict on an appeal filed by the PSU. GAIL had challenged the Gujarat high court’s order that repealed its decision to terminate contract with the state owned oil and natural gas exploration company, Gujarat state petroleum corporation (GPSC), for providing natural gas imported from Qatar.

The high court had also asked GAIL to engage in a bona fide manner in fixing gas prices with the state PSU from January 1, 2014.

GAIL had signed a 15 year contract with GPSC in 2004 to provide natural gas. As per the contract, the price renewal for the gas to be provided from January 1, 2014 onwards was to be negotiated by the two parties by December 31, 2011.
 

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