In a development that could deliver a setback to Reliance Industries, the Bombay high court on Monday allowed power PSU NTPC to amend its petition, seeking implementation of a gas supply agreement, overruling RIL's objections that the contract was not concluded.
In an interim order, Justice R S Mohite permitted NTPC to move special amendments, seeking implementation of the company's contract with Reliance Industries for sourcing of gas. The judge posted the case for further hearing on November 8.
Reliance had objected to the NTPC amendment, saying the contract for supply of gas was never finalised and so there was no question of 'performance' of the contract.
NTPC contended that it had awarded a contract to supply 12 million standard cubic metre per day of gas to Reliance Industries at a delivered price of $2.97 per mbtu.
While NTPC cites the signing of letter of intent by RIL as acceptance of the contract, Reliance Industries had stated that terms and conditions were under discussion when NTPC went to court. Reliance had objected to unlimited liability clause in case of default in the contract and had said the LoI was not conclusion of the pact.
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