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

Do you think the defence equipment procurement process needs to be revamped?

Do you think the defence equipment procurement process needs to be revamped?

SAIL’s net loss declines to Rs 730 cr

Country’s largest steelmaker-- Steel Authority of India Limited (SAIL) on Thursday claimed of registering slump in standalone net loss at Rs 730.72 crore for the quarter ended September 30, helped by a strong marketing push and cost optimisation measures, reported Press Trust of India (PTI).

The present form of dancing is like circus: Pandit Birju Maharaj

Pandit Birju Maharaj is a living legend and an institution in himself. He represents Kalka-Bindadin gharana of Lucknow. He has mesmerised artists and audiences in India and abroad with his Kathak skills. He is also an accomplished vocalist and musician. He can play all string instruments like Sitar, Sa

National Rail Plan, 2030 unveiled

 The ministry of railways has come up with National Rail Plan, 2030 to provide long term perspective to plan for augmenting the railway network. In order to give a platform to concerned stakeholders to have their suggestions on modernisation and rapid development of the railways, a website (

Disruptions in parliament amount to gagging majority: Pranab Mukherjee

President Pranab Mukherjee on Thursday emphasised on the need to avoid disruption of parliamentary proceedings. He said that while three Ds are essential in a parliamentary system of democracy i.e. Debate, Dissension and Decision, the fourth D i.e. Disruption is totally unacceptable. The pa

So, who gets Jayalalithaa’s properties?

 Who will own the properties of Jayalithaa, who served five terms as chief minister of Tamil Nadu and died on December 5? That is a question which is being asked by the people in Chennai. In the affidavit submitted by Jayalalithaa in her nomination paper for the 2016 assembly election from R

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter