Friday, May 07, 2010

RIL-RNRL Verdict Highlights, RIL-RNRL Gas Case Highlights

The majority verdict judgement in the RIL-RNRL gas dispute case was delivered by Chief Justice K G Balakrishnan; Justice P Sathasivam reads out verdict.

What the Supreme Court says

RIL does not have absolute marketing right over gas; price subject to government approval

Family MoU not legally binding

Terms of production sharing contract will have over-riding effect

Gas is government asset till it reaches consumer

Supreme Court holds petition filed by RNRL before company court as maintainable, as court had sanctioned the original demerger scheme.

Ambani family MoU technically not binding, as it's between two brothers - Anil and Mukesh and mother Kokilaben, and three million shareholders of RIL-RNRL did not know its contents.

Ambani family MoU can be a means of arriving at suitable arrangement but cannot be the sole means for a suitable arrangement

Since MoU not made public, it doesn't fall in corporate domain

Suitable arrangement must not be suitable only for RIL, but also for shareholders of RNRL and it's RIL's obligation to look after it

Production Sharing Contract meant for regulating supply of gas and under PSC it is for government to evaluate price of fuel

On Govt role, SC says since gas is national asset public interest has to be looked into first

Justice B Sudershan Reddy, however, says family MoU cannot be taken into consideration at all

Anil Ambani leaves court without offering any comments on the verdict

Govt welcomes SC verdict on RIL-RNRL dispute that upholds its right on gas; Oil Minister Murli Deora says nation is supreme irrespective of campaign against Govt