After hearing the arguments for the last 57 days, the Supreme Court has finally reached a result and has reserved a verdict on the Mukesh Ambani and Anil Ambani case over the gas supply from RIL to RNRL.

In the case, the RIL head Mr. Mukesh Ambani has been stressing on the role of the government and the approval it has made to supply 28 mmcd gas for 17 years at the rate of $2.34 per unit to the Mr. Anil Ambani lead RNRL from the gas field of Krishna Godavari basin, while Mr. Anil Ambani has been accusing the elder brother on breaching the agreement that has been signed in the presence of their mother.

In the front of the three- member bench headed by Chief Justice KG Balakrishnan, Solicitor General Gopal Subramanium submitted that the under the production sharing contract (PSC), the government holds the title to the natural gas, which does not automatically passes to the contractor, but the title passes to the contractor only at the delivery point when it sells the gas to the buyer.

The Krishna-Godavari basin has been provided to Mr. Mukesh Ambani lead RIL under the New Exploration or Licensing Policy (NELP), which allowed the private sector to produce and distribute oil and natural gas.

The price, tenure and quantity about the gas project were decided in a contract, into which the Ambani family entered in the year 2005. But later, the RIL claimed that under the government consideration, the company will sell gas for $4.20 per unit to RNRL.

Earlier, the RNRL’s favour was sustained by the Bombay high court. While presenting his views, the RIL counsel, Mr. Harish Salve informed that the company has never denied supplying gas to RNRL, but the RNRL has been denying the government approval clause, which was also mentioned in the NTPC draft.

While replying to the Justice Reddy’s query, Mr. Salve further informed that the RIL could be in trouble if the NTPC wins the case in the Bombay High Court.

He added, “When I have gas for 10 years how can I sign a gas supply agreement for 17 years.”