ONGC Vs. ASSOCIATION OF NATURAL GAS CONSUMING INDS

JUDGEMENT

(1.) The only question which arises for consideration in these applications filed by the Oil and Natural Gas Commission (for short O.N.G.C.) relates to the demand of interest from the respondents subsequent to the appeal with regard to fixation of price of natural gas having been decided by this Court.

(2.) Briefly stated the facts are that the respondents had entered agreements with the applicant whereby they had agreed to take natural gas from the applicant for the purpose of the industries run by them. It is not in dispute that there were written contracts executed between the applicant on the one hand and the various companies, agreements, in question, have stipulated the price payable and also contained terms inter alia to the effect as to when payment would be made and in the event of failure to make the payment, the rate of interest which would be paid. This was provided in clauses similar to Clause 5.01 read with Clause 5.02 which reads as follows :

(3.) The contracts came to an end on 30th March, 1979 and the applicant proposed that the contract should be renewed, but at the enhanced price of gas. The respondents thereupon filed a writ petition before the Gujarat High Court challenging the increase in the price of gas as fixed. By an interim order, the High Court directed the applicant to supply gas at the old rate of Rs. 504/- per 1000M3. Subsequently, by an order dated 29th October, 1982, the High Court increased the interim price to Rs. 1000/- per 1000M3.