Supreme Court imposes Rs 10 lakh cost on RIL in NTPC gas suit

The Story in Brief

The Supreme Court on Friday imposed a cost of Rs 10 lakh on Reliance Industries Ltd for obstructing a 20-year-old commercial suit filed by NTPC. A bench of Justice PS Narasimha and Justice Alok Aradhe directed the amount to be deposited with the Supreme Court Advocates on Record Association. The Court observed that RIL’s litigation strategy seemed unlimited, with objections raised at every stage, stalling a suit filed in 2005 that remains at the evidence stage. It also noted that despite its 2019 direction to dispose of the suit in nine months, no effective steps were taken. The Court dismissed RIL’s latest appeal against a High Court order allowing NTPC to redact privileged internal communications from an affidavit.

The dispute arises from a 2005 suit by NTPC seeking specific performance of a natural gas supply agreement. Over the years, RIL filed multiple applications and appeals, including a rejected fishing enquiry for NTPC documents and a failed attempt to introduce its own internal documents. The Court called the delay a sad reflection on court proceedings and urged the High Court to expedite the suit.