LAWS(SC)-2021-9-98

ADANI GAS LIMITED Vs. UNION OF INDIA

Decided On September 28, 2021
Adani Gas Limited Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) Special leave granted. These appeals were heard with the consent of counsel appearing on behalf of the parties. The appeals are directed against a judgment of the Gujarat High Court(Dated 28.09.2018.) rejecting certain writ petitions.

(2.) In those proceedings, the main appellant (hereafter called "Adani") challenged the validity of Regulation 18 of the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008 (hereafter called the "CGD Regulations") as violative of Articles 14 and 19(1)(g) of the Constitution of India, and ultra vires Section 16 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (hereafter called the "PNGRB Act" or "the Act"). Adani had also challenged the grant of authorization to the third respondent (hereafter called "Gujarat Gas") for laying and maintaining a gas distribution network. Gujarat Gas had succeeded in securing the authorization in an auction held by the Petroleum and Natural Gas Regulatory Board (hereafter called "PNGRB" or "the Board").

(3.) The PNGRB Act came into effect on 1.10.2007, and mandated authorization by the Board for the laying, building, operating or expanding any city or local natural gas distribution network (collectively, "CGD activities" and such a network, "CGD network"). On 30.10.2007, the Board issued a press note directing entities engaged in CGD activities with or without authorization of the Central Government, to submit relevant details. After receiving the petitioner's details, the Board informed it that recognition and acceptance could be only of a specific and formal authorization by the Central Government, in accordance with Section 17 of the Act. Accordingly, Adani's activities were restrained and a direction was given to obtain authorization from the Central Government. The Board eventually granted Adani provisional clearance to carry out certain capital works in the Ahmedabad area, including the disputed areas of Sanand, Bavla, and Dholka (hereafter called "disputed areas"). Adani also submitted an indemnity in favour of the Board.