OPG ENERGY PVT LTD Vs. GAIL (INDIA) LIMITED

JUDGEMENT

(1.) The applicants, who were allotted a specified quantity of natural gas by the Government of India, Ministry of Petroleum and Natural Gas, to be supplied by the Gas Authority of India Limited, which is a Government of India undertaking, have come up the above applications under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim orders of injunction restraining Gas Authority of India Limited from raising debit notes for the gas supplied during the period from 06.6.2006 to 31.5.2010, pursuant to the letters issued to each one of them on 29.11.2011, pending disposal of the arbitration proceedings.

(2.) I have heard M/s.R.Yashod Vardhan, Mr.AR.L.Sundaresan, Mr.P.S.Raman, learned Senior Counsel and Mr.Vinod Kumar, learned counsel appearing for the applicants and Mr.M.Ajmalkhan, learned Senior Counsel for the respondent.

(3.) Under separate agreements, entered into in the year 2000, the respondent agreed to supply to the applicants, a fixed quantity of gas, as allotted by the Government of India. The period of validity of the agreements was fixed generally as 31.12.2010, though in individual cases, there were some variations. The agreements provided for the extension of the period of contract. Insofar as the price of gas is concerned, Article 10 of the agreements stipulated that up to 31.3.2000, the price as fixed by the Government of India under a Pricing Order dated 18.9.1997 would be adopted. After 31.3.2000, the respondent reserved the right to fix the price as per the directives, instructions or Orders of the Government of India. It was also stated that the price was likely to be market related in accordance with current policy of liberalisation of the Government of India.