Interim relief to RIL vacated

GANDHINAGAR - The Gujarat High Court has vacated the interim relief granted to Reliance Industries Limited (RIL) in a matter against the Gas Authority of India Limited (GAIL).

Justice Akil Kureshi vacated the relief granted to RIL with an observation that it would amount to allowing the petition at the admission stage. The order, made available Thursday, noted that prima facie it was a contractual matter between RIL and GAIL.

The RIL approached the high court challenging the cost of transportation charged by GAIL for transporting natural gas to its plant. RIL made the central government, GAIL and its director (marketing) respondents in the case.

RIL contended that it had its own pipeline to transport natural gas from the delivery point to its plant in Hazira hence GAIL could not charge about Rs.35 lakh per month from it as transportation costs.

The respondents’ counsel said that the charge was levied up to the delivery point hence GAIL was not wrong in charging the costs.

Another single judge bench of the court in April admitted the matter considering a division bench judgment and issued notice. The court also granted interim relief by imposing a stay on charging transportation costs.