{"id":229101,"date":"2010-11-24T00:00:00","date_gmt":"2010-11-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/reliance-vs-union-on-24-november-2010"},"modified":"2018-11-05T00:53:41","modified_gmt":"2018-11-04T19:23:41","slug":"reliance-vs-union-on-24-november-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/reliance-vs-union-on-24-november-2010","title":{"rendered":"Reliance vs Union on 24 November, 2010"},"content":{"rendered":"
Gujarat High Court<\/div>\n
Reliance vs Union on 24 November, 2010<\/div>\n
Author: Akil Kureshi,&Nbsp;<\/div>\n
   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/5246\/2010\t 5\/ 5\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 5246 of\n2010 \n=========================================================\n\n \n\nRELIANCE\nINDUSTRIES LTD(RIL) & 1 - Petitioner(s)\n \n\nVersus\n \n\nUNION\nOF INDIA & 2 - Respondent(s)\n \n\n=========================================================\n \nAppearance\n: \nMR\nKS NANAVATI, SR COUNSEL FOR NANAVATI ASSOCIATES\nfor\nPetitioner(s) : 1 - 2. \nMR PS CHAMPANERI for Respondent(s) :\n1, \nRULE SERVED BY DS for Respondent(s) : 2 - 3. \nMR RAKESH GUPTA\nWITH MR ABHISHEK MEHTA FOR M\/S TRIVEDI & GUPTA for Respondent(s)\n: 2 - 3. \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE AKIL KURESHI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 24\/11\/2010 \n\n \n\n \nORAL\nORDER<\/pre>\n
The
\n\tpetition was admitted by order dated 29.4.2010. Ad interim relief in
\n\tterms of 18(D) was also granted till the returnable date of the
\n\tinterim relief. Such interim relief has continued from time to time.
\n\tToday the issue of confirmation\/vacation of interim relief was
\n\targued before me by the learned advocates for both the sides.\n<\/p>\n
Petitioner
\n\tno.1 M\/s. Reliance Industries Ltd(“RIL” for short)
\n\treceives natural gas from respondent no.2 GAIL (India) Ltd. Petition
\n\tpertains to transportation charges levied by GAIL from RIL for
\n\tsupplying such natural gas. It is the case of the petitioners that
\n\tsuch levy is unauthorised, against the Government of India Gas
\n\tpricing specifications, is opposed to Article 14 of the
\n\tConstitution. It is also the case of the petitioners that previously
\n\tanother consumer IPCL had approached this Court challenging such
\n\tlevy. Learned Single Judge in case of Indian Petrochemicals
\n\tCorpn. Ltd and other v. Union of India in Special Civil
\n\tApplication No. 4887\/2006 vide order dated 19.9.2006 allowed the
\n\tpetition, quashed the levy, directed refund of the transportation
\n\tcharges already collected. It is also the case of the petitioners
\n\tthat decision of the Learned Single Judge was challenged in appeal
\n\tbefore the Division Bench. Letters Patent Appeal No.1622\/2006
\n\thowever came to be dismissed by judgement dated 17.6.2008. On such
\n\tbasis, petition has been filed.\n<\/p>\n
Para.18(D)
\n\tof the petition in terms of which interim relief has been granted
\n\treads as follows:\n<\/p>\n
“(D)
\n\tPending the hearing and final disposal of the present petition, your
\n\tLordship may be pleased to direct the Respondent No.2 and No.3 its
\n\tofficers, servants and agents to continue to supply gas without
\n\trecovering transmission charges.”\n<\/p>\n
By
\n\tvirtue of said directions therefore, petitioners would receive gas
\n\tfrom GAIL without paying transportation charges for such
\n\tconsumption. It is this interim relief which the petitioners request
\n\tto be confirmed.  Opponents stoutly oppose such a prayer.\n<\/p>\n
Heavy
\n\treliance is placed on the decision of the Learned Single Judge as
\n\twell as Division Bench in case of IPCL contending that such levy has
\n\tbeen declared illegal by the High Court. It is also contended that
\n\tGovernment of India Pricing Policy does not permit any additional
\n\tcharges such as transportation charges to be recovered by GAIL.
\n\tThough the petitioner had in previous agreements with GAIL agreed to
\n\tpay such charges, it is contended that the petitioners were coerced
\n\tinto signing such an agreement and in absence of any other supplier
\n\tof gas, the petitioners had no choice but to agree to such terms. In
\n\tany case, there is no estoppal against law nor can there be waiver
\n\tof fundamental rights. It was contended that interim relief which is
\n\tgranted as far back as in April 2010 be continued till the final
\n\tdisposal of the petition. It is further contended that the RIL has
\n\tlaid down its own pipeline for carrying the gas from the delivery
\n\tpoint till its factory therefore, no transportation charges can be
\n\trecovered.\n<\/p>\n
On
\n\tthe other hand, on  behalf of GAIL, it is contended that facts in
\n\tthe present case are vitally different from those involved in case
\n\tof IPCL. Apex Court has issued notice and granted stay against
\n\trefund in the said case. It was pointed out that the gas is carried
\n\tfrom GGS III station to GPC Gandhar by pipelines laid down and
\n\tmaintained by the GAIL. First 10.6 km pipeline has  18″
\n\tdiameter, remaining 4.5 km is divided into two pipelines of 24″
\n\tand 14″ diameter. It is from GPC Gandhar that RIL lifts gas
\n\tthrough its own pipelines. Transportation charges are only for
\n\ttransporting gas from GGS III to GPC Gandhar and not beyond the said
\n\tpoint. It was also contended that in agreements between the parties,
\n\tRIL had agreed to pay such charges.  He submitted that there are
\n\tother suppliers of the gas also.\n<\/p>\n
At
\n\tthis stage tackling only question of interim relief, I prima facie
\n\tfind that :\n<\/p>\n
1)\tIn
\n\ttwo separate agreements entered into between the parties in the year
\n\t2000 and 2008, RIL had agreed to pay the above transportation
\n\tcharges. In particular, agreement of the year 2008 was entered into
\n\twhen the proceedings in case of IPCL were already concluded by the
\n\tHigh Court. Judgement of IPCL case was available. Despite which
\n\twithout any protest, petitioners agreed to pay such charges.\n<\/p>\n
2)\tFrom
\n\tthe year 2000 till 2010, when the present petition was filed, no
\n\tobjection was raised on  behalf of RIL to such charges being levied
\n\tby GAIL. Petitioners have for nearly 10 years paid transportation
\n\tcharges under agreement between the parties without any protest.\n<\/p>\n
3)\tThough
\n\tit is contended on behalf of the petitioners that gas is transported
\n\tat its own cost through pipeline  installed and maintained by the
\n\tpetitioners, respondents suggest that such carriage by RIL is only
\n\tfrom GPC Gandhar station and from GGS III to GPC Gandhar, gas is
\n\tbeing carried by GAIL through its pipeline installed and maintained
\n\tby GAIL. Prima facie, therefore, on facts, case of IPCL may stand on
\n\ta different footing, wherein conclusion of the Learned Single Judge
\n\tas upheld by the Division Bench was that consumer was transporting
\n\tthe gas through its own pipelines. It was in this background that
\n\tthe Learned Single Judge held that for such transportation no
\n\tcharges can be levied by the gas company. Whether for transporting
\n\tthe gas from GGS II to GPC Gandhar, GAIL can recover charges from
\n\tthe petitioner is question which requires a closure look and
\n\tdetailed scrutiny. However, when the petitioners had been paying
\n\tsuch charges for nearly 10 years before filing of the petition and
\n\thad agreed in two separate agreements between the petitioner and
\n\tGAIL to pay such charges, question is whether such levy should be
\n\tsuspended by way of interim relief which would amount to, at this
\n\tstage, substantially allowing this prayer of the petitioner finally.
\n\tThis can also not be stated to be a situation that if no interim
\n\trelief is granted, irreparable loss to the petitioner which cannot
\n\tbe compensated in terms of money would be caused.\n<\/p>\n
Considering
\n\tthe above aspects of the matter, interim relief granted earlier is
\n\tvacated. However, with clarification and direction that for
\n\tconsumption of the gas during the period when interim relief was
\n\toperating in favour of the petitioners, no transportation charges
\n\tshall be demanded from the petitioners till final disposal of the
\n\tpetition.\n<\/p>\n
(Akil
\nKureshi,J.)<\/p>\n
(raghu)<\/p>\n
\t\t   \u00a0\u00a0\u00a0<\/p>\n
\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"
Gujarat High Court Reliance vs Union on 24 November, 2010 Author: Akil Kureshi,&Nbsp; Gujarat High Court Case Information System Print SCA\/5246\/2010 5\/ 5 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 5246 of 2010 ========================================================= RELIANCE INDUSTRIES LTD(RIL) & 1 – Petitioner(s) Versus UNION OF INDIA & 2 – Respondent(s) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-229101","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"\nReliance vs Union on 24 November, 2010 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/reliance-vs-union-on-24-november-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reliance vs Union on 24 November, 2010 - 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