SC slaps Rs 10 lakh fine on Reliance Industries for delaying NTPC gas supply suit

Synopsis

The Supreme Court fined Reliance Industries ten lakh rupees for delaying a suit. NTPC filed the natural gas supply contract case against Reliance back in 2005. The court noted Reliance's continuous obstruction of the legal proceedings for two decades. This action came after the Bombay High Court's decision regarding witness affidavits. The apex court expressed strong disapproval of the prolonged litigation and its impact.

New Delhi: Coming down heavily on Reliance Industries (RIL) for delaying a suit by NTPC Ltd for two decades in a supply of natural gas contract since 2005, the Supreme Court Friday fined it, saying the Mukesh Ambani company's power to litigate and obstruct progress of the suit seems unlimited.

"There is no dearth of financial resources, no obligation to aid and assist the court to cope with pending backlog of cases, perhaps it is lucrative for Reliance Industries to raise some objection or the other at every stage and when the trial court rejects it, the appellate and special leave jurisdictions open up. This litigation has multiple seasons laden with many episodes, a bench comprising Justices P.S. Narasimha and Alok Aradhe said while indicting RIL for the delay.

"...it is compelling for us to note that the suit filed by NTPC way back in 2005 has not progressed much. At every stage there has been obstruction," it said, adding that seven years have passed since the apex court had directed the suit to be disposed of in nine months.

Imposing a fine of ₹10 lakh on RIL, the top court dismissed its appeal against the Bombay HC's decision to redact certain portions of examination-in-chief affidavits of NTPC's witness B.K. Ganguly in the long-running commercial dispute with the PSU.