RIL, NTPC request Bombay HC to conduct daily hearings
30 Aug 2007
Reliance
Industries Ltd (RIL) and National Thermal Power Corporation (NTPC) have requested
the Bombay High Court to conduct daily trials reports CNBC-TV18. According to
RIL, the High Court''s interim order may create problems for both sides and early
finality is necessary in the case.
The Bombay High Court is to decide
on RIL, NTPC''s application. The court said that the gas and power projects are
of national importance and it recommended early and daily hearings of the case.
The chief justice will now decide, probably next week, whether an early
hearing will be granted. In most likelihood, it will be granted and the hearing
date is likely to be fixed.
Only in exceptional circumstances is a daily
hearing granted by the High Court. It happens once in many years.
RIL
and NTPC both made a joint plea for an early hearing, because an interim order,
either way is of no use for them, because if the final order is against them,
it could land them up with a huge liability.
The issue is that NTPC says
that RIL has accepted its letter-of-intent given by NTPC for the gas supply and
that it had unconditionally accepted the gas supply agreement that binds Reliance
to supply gas for 17 years to NTPC, at the agreed $3.2 per unit.
Reliance,
on the other hand, counters that there was no concluded contract with NTPC and
the acceptance of the letter-of-intent was conditional, upon the settlement of
outstanding issues. Those issues are yet to be solved and there is no concluded
contract and hence, there is no question of supply of gas, says RIL.