LAWS(BOM)-2007-5-4

RELIANCE NATURAL RESOURCES LIMITED Vs. RELIANCE INDUSTRIES LIMITED

Decided On May 03, 2007
RELIANCE NATURAL RESOURCES LIMITED Appellant
V/S
RELIANCE INDUSTRIES LIMITED Respondents

JUDGEMENT

(1.) THIS Order will dispose of prayer for ad-interim relief pressed by the Applicant.

(2.) PRESENT Application has been taken out in the Application filed by the Applicant purported to be under Section 392 of the Companies Act, 1956 (hereinafter referred to as the Act ). That application arises out of the order passed by the company Judge on 19th December 2005 sanctioning scheme of Arrangement/de-merger of Reliance industries Limited (RIL ). The Scheme sanctioned by this Court became effective on 21st December 2005. The present proceedings are essentially confined to the issues arising from the Scheme sanctioned by the Court in relation to the business and undertaking of gas based power generation, distribution and transmission of the gas based energy undertaking.

(3.) THE controversy in the present proceedings is in relation to the Gas Sale Master Agreement (GSMA) and Gas Sale Purchase Agreement (GSPA)executed between the Applicant and Respondent companies on 12th January 2006 as amended on 27th january 2006. According to the Applicant, the said agreements have neither been executed in accord with the Scheme sanctioned by this Honble Court nor the stipulations therein are consistent with the spirit of demerger scheme sanctioned by Court. In fact, the same if given effect to, would frustrate the Scheme sanctioned by Court. Whereas, according to the Respondent Company, the said agreements were executed between the two Companies in furtherance of Clause 19 of the Scheme sanctioned by this Court.