Apex court judge quits Reliance gas dispute case

New Delhi, Nov 4 : Justice R.V. Raveendran, a member of the three-judge Supreme Court bench hearing the dispute between companies led by the two Ambani brothers, Mukesh and Anil, over supply and pricing of natural gas, quit the case Wednesday.

Raveendran quit after disclosing to the court that his daughter has been working for Bangalore-based firm AZB Associates, which provides consultancy to Mukesh Ambani-led Reliance Industries on issues of global acquisition.

The judge said he came to know of his daughter's relationship with Reliance Industries only last weekend. He has been hearing the high-profile legal battle along with Chief Justice K.G. Balakrishanan and Justice P. Sathasivam.

"I know my conscience is clear. But justice should not only be done but also seen to be done for upholding the respect and dignity of the institution," the judge said. "I wish somebody would have brought it to my notice earlier."

Raveendran quit the hearing when Harish Salve, counsel for Reliance Industries, was to conclude his argument. The matter will now be heard afresh by a new three-member bench beginning Thursday.

Soon after Justice Raveendran's disclosure, Ram Jethmalani, the counsel for Anil Ambani's Reliance Natural Resources, tried to persuade the judge to continue. But the counsel for Reliance Industries remained silent.

The other two members of the bench also said once a decision is taken that three judges should hear the case, given the complexity of the matter, it would not be possible for two judges to adjudicate.

Chief Justice Balakrishanan then started looking at the calendar for fresh dates but Salve submitted that he had prior commitments from Nov 30 to Dec 9.

The chief justice then wondered if the hearing would prolong till January, to which Jethmalani suggested that the hearing could resume Thursday itself for a week to accommodate Salve, which was accepted.

During the course of hearing the arguments by the senior counsel for Reliance Industries, Justice Raveendran had been asking several probing questions, while also passing several comments to elicit a response.

He had said Oct 29 that if the natural gas from the Krishna-Godavari basin is sold at a lower price, the whole country would stand to gain, while Reliance Industries alone would benefit if the consideration was higher.

Justice Raveendran also asked why Reliance Industries couldn't supply gas to Reliance Natural at $2.34 per unit, as the company will still make a profit at that price. He observed that $2.34 was also the price agreed for gas sale to the state-run NTPC.

The dispute is over the supply of 28 million units of natural gas for 17 years at $2.34 per unit to Reliance Natural Resources from the Krishna-Godavari fields, off the Andhra Pradesh coast, that was awarded for exploration and harnessing to Reliance Industries.

The price, tenure and quantity were all based on a family reorganisation pact in 2005 but Reliance Industries subsequently said it could only sell it for $4.20 per unit, claiming this was the price fixed by the government.

The Bombay High Court had given the verdict in favour of Reliance Natural Resources, which was then challenged in the Supreme Court by the Mukesh Ambani-led firm.