GAIL (INDIA) LTD. Vs. ESSAR STEEL LTD.

JUDGEMENT

(1.) The Applicant Arcelor Mittal Nippon Steel India Limited (Formerly known as Essar Steel India Limited) has filed this Civil Application No.1 of 2021 in Letters Patent Appeal No.1618 of 2005 in Special Civil Application No.3348 of 2001 seeking dismissal of the Letters Patent Appeal filed by M/s. GAIL India Limited, in view of the subsequent developments which have taken place in the matter.

(2.) The Company - M/s. Essar Steel Limited had filed Special Civil Application No.3348 of 2001 against the Respondent - Union of India and GAIL (India) Limited for quashing and setting aside their Demand Notice dated 1.5.2001 and further seeking disconnection of supply of Gas, for non-payment of Transportation charges by Essar Steel Limited which Special Civil Application came to be allowed by the learned Single Judge by quashing and setting aside their Demand Notice dated 1.5.2001 and it was held that the Petitioner - Essar Steel Limited is not liable to pay the Transportation charges for 0.35 MMSMDC supply of gas along the ex-HBJ pipeline for the supply from landfall point. It was further held that GAIL is required to follow the Pricing Orders dated 31.12.1991, 18.9.1997 and 30.9.1997.

(3.) The Petitioner - Essar Steel Limited (later on name changed to Arcelor Mittal Nippon Steel India Limited) was also held entitled to get all the consequential benefits in pursuance of the implementation of Pricing Orders of Government of India including 15% rebate on fall back basis as per the agreement. It was further observed by the learned Single Judge that the metering charges should be proportionate to the expenses incurred by Respondent No.3 - GAIL India Limited and it should not be disproportionate.