Supreme court rules in favour of GAIL

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.

 

 

Comments

 

Other News

Leaked data is not ours, claims IRCTC

The Indian Railway Catering and Tourism Corporation (IRCTC) rebuked the allegations of the Maharashtra cyber crime cell regarding the leak of user profile data of at least one crore people from its website. The IRCTC clarified that the data allegedly leaked did not belong to their website.  

Manipur tops in preventing crime and maintaining law & order, Haryana at the bottom

The Public Affairs Centre, a not for profit organisation, assessed states and union territories using data available in the public domain in key areas of governance and came out with ‘Public Affairs Index’, presenting an inter-state comparison. The states were compared on 10 areas each and were

Drug regulatory structure is not sound: Whistleblower, Dinesh Thakur

Dinesh Thakur, 48, first hit headlines in May 2013, when his campaign against his former employer Ranbaxy’s unsafe practices and lax quality control in its US facilities concluded successfully: the drug-maker was forced to pay $500 million to the authorities. Thakur, as the whistleblower in the c

Giving people’s money back to them to spend on their own

AAP’s original concept of mohalla sabha has undergone some changes this year. Atishi Marlena, who is advisor to the deputy CM and is spearheading the initiative, talks about the emergence of a new brand of grassroot politics and reaching out to people through mohallas across the city.

Pause before you pop, it may be spurious

Indu Gilra, a retired teacher in her seventies living in Indirapuram, Ghaziabad in the national capital region (NCR), would often pop a tablet of Combiflam at the slightest hint of body ache. Since it’s an over-the-counter medicine, she could purchase it anywhere and it had always worked. One day, ho

Direct democracy dobara in Delhi

Installation of CCTV cameras. Setting up of a library. Putting up streetlights. Setting up of Mother Dairy booths. Opening of dispensaries.   These were some of the basic demands that had emerged when the Delhi government last year went to the people to hear from them their n

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter