JOIN US‘’You negotiate or we will direct you to go for arbitration for a suitable arrangement,’’ said the bench of Chief Justice K G Balakrishnan, Justice R V Raveendran and Justice P Sathasivam during the arguments on the fourth day.
“There are some parameters to arrive at suitable arrangements for supply of gas. It is not the function of the court,” said Justice Raveendran.
RIL Advocate Harish Salve said anything not approved by the board or shareholder is not part of the scheme. The court asked: You dispute Mukesh Ambani, Anil Ambani and their mother Kokilaben entering into this agreement? “May be,” he said: “This agreement is beginning of the process of demerger.” However, the RIL board and shareholders of the company had no knowledge of the agreement. Moreover, the agreement was not approved by the share holders or the board of directors of RIL in accordance with the company law, he said.
Salve said the gas supply master agreement (GSMA) is a complete and sensible document which should be the basis of gas supply between the two companies. The RIL counsel contended that now there was government’s gas utilisation policy, which was better and more suitable arrangements for the gas supply.
RIL said that if it was not selling the gas at $4.2 per mmBtu(unit), it would making a loss. Senior Advocate Ram Jethmalani of RNRL intervened and said the production cost of gas is 89 cents and even selling the gas at $ 2.34 mmBtu, RIL would be making profit of thousands of crore of rupees.