Advocate Ram Jethmalani of RNRL appearing before a bench headed by Chief Justice K G Balakrishnan said, “Dadri power Plant depends on finance, finance depends on bankable document and this bankable document is the agreement. This MOU is sacrosanct.”
As this MOU to supply natural gas was not regarded as bankable document, the required finance for setting up of the power plant could not be arranged, he said during the arguments. Incidentally, Anil Ambani, on Tuesday, attended the court proceedings till the end of the day.
Jethmalani said he had asked Anil Ambani to be present in the court during the submission of MOU. Asked what difference it would make, he said, “I know what difference it is going to be, but I am not going to tell you.” Continuing his arguments, Jethmalani said it was not a secret kept from the company and the board meetings of the RIL had taken cognizance of the MOU signed between the brothers.
At the time of demerger, the RIL board approved of granting equal number of shares to RNRL to the shareholders and the shareholders of the company are also aware of the mou, he said. ‘’Shareholders of RIL became shareholders of RNRL due to demerger,’’ he said.
The whole scheme was approved by the RIL board before it was filed before the company court for demerger of the company between the two brothers. At the time of signing of agreement to supply gas from RIL to Reliance Energy Ltd, REL was a subsidiary of RIL and both owned by Mukesh Ambani and the present dispute was erupted after demerger of the company between two brothers, he said.
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