GAIL had offered to supply gas to GSPL at the pooled price but the latter did not agree and insisted on negotiation for the contract price of RLNG
GN Bureau | September 18, 2013
The supreme court overruled the Gujarat high court and has allowed GAIL (India) to go ahead with its decision to terminate contract with the state-owned oil and gas exploration company, Gujarat State Petroleum Corporation (GSPL), for providing natural gas imported from Qatar.
According to a news report in The Financial Express, a bench comprising justices GS Singhvi and V Gopala Gowda said that the high court should have relegated GSPL to the remedy of arbitration keeping in view the complex nature of the price fixation mechanism.
The apex court stated that the high court presumed that the negotiations held between the parties were not fair and that GSPL was entitled to the benefit of the policy decision taken by the centre despite the fact that it had not only challenged that decision but had also shown disinclination to accept the offer made by GAIL to supply gas at the pooled price and had insisted on mutually agreed price.
Writing for the bench, justice Singhvi stated that a reading of the draft re-gasified liquefied natural gas (RLNG) contract and price side letter sent by GAIL to the GSPL shows that GAIL had offered to supply gas to GSPL at the pooled price but the latter did not agree and insisted on negotiation for the contract price of RLNG to be effective from 1.10.2009.
GAIL had entered into a long-term gas sale agreement for 15 years in February 2004 with GSPC to provide gas till 2019. 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.
Even as a vision and a strategy agenda is in "advanced stages" of finalisation at NITI Aayog, the government think tank has released a draft three year action agenda for public consultation. The draft action agenda, divided in seven parts and 24 chapters, proposes to reduce
The National Human Rights Commission (NHRC) on Tuesday said it was “disturbed” over the killing of 25 Central Reserve Police Force (CRPF) personnel by Naxalites in Chhattisgarh on April 24. The troopers were attacked while on duty for securing road construction work in the Bur
Twitter Sewa unveiled by the ministry of telecommunications last year to resolve users’ complaints through micro blogging site Twitter has yielded fruitful results by resolving 99 percent of the complaints. According to BSNL data, as on April 15, 2017, it has receiv
What is your perception about Arvind Kejriwal’s brand of politics? In Delhi, after the BJP and the Congress, people wanted to give the Aam Aadmi Party a chance. However, after the Delhi assembly polls, his (Kejriwal`s) political fortune has been on the declin
Bharat Heavy Electricals Limited’s biggest export order, valued at Rs 10,000 crore for setting up 1,320 MW Maitree thermal power project in Bangladesh has taken-off following the issuance of the ‘notice to proceed’ by the developer. BHEL said that it won a
Mozilla is working on two separate goals in net neutrality. One is to bring everyone online; ensure that everyone has access to the internet. The other is to ensure that the network should remain open and diverse. We want people to have access to the whole diversity of the internet and not just in