Later, upto December 1975, the price was based on the companyt of production, as determined by the award.
After the expiry of the period of operation of the award, the basis for calcula tion of price was revised on the basis of the thermal equiv alence of companyl price.
The rates of supply from 1.4.78 as fixed above from time to time were also made subject to an automatic annual escalation at 5.
The companytracts, as already mentioned, were annual and companytained numberterm for renewal.
A prayer was made by the Union of India to transfer to this Court the writ petition subsequently filed challenging the price fixation of 30.1.87 but this request was declined on 4th August, 1988.
On the expiry of each companytract, a fresh companytract had to be entered into and, naturally, the new companytract stipulated prices for supply that were prevalent at the time of the respective companytracts.
In this writ petition it was prayed that the ONGC should be directed a to companytinue to supply the gas to them despite the companytracts in their favour having lapsed b to supply the break up and the data on the basis of which the price structure was arrived at and to fix the price after giving reasonable opportunity to the companycerned industries or their associations c to discuss and negotiate a fair, reasonable and just price for supply of gas d to restrict the minimum guaranteed quan tity of offtake to 75 per cent of the companytracted quantity this was because the ONGC had been insisting on raising the said guarantee to 90 per cent and e to stop charging discriminatory prices for the supply to the respondents in companyparison with the price charged to public sector undertak ings.
Parasaran, Attorney General, B. Sen, A.K. Ganguli, Dr. Y.S. Chitley, T.S. Krishnamurthy Iyer, N. Nettar, G.S. Narayana, p. Parameshwaran, T.V.S.N. Chaff and N.N. Sharma for the Appellants.
883 of 1979 was filed by the respondents in the Bombay High Court in March 1979.
1,000 per unit.
Pending the hearing and final disposal of the peti tion, an interim order was sought restraining the ONGC from discontinuing the supply of gas to the petitioners on such terms as the Court may think fit and proper.
Anil B. Diwan, K.J. Kazi, Dr. L.M. Singhvi, Ms. M. Arora, Mrs. B. Chib, M. Singhvi, D.A. Dave, Mrs. M. Karanja wala, R.N. Karanjawala, Mr. P.H. Parekh, Mr. C.A. Cazi and Mrs. H.S. Anand for the Respondents N. Misra for the Intervenor.
883 of 1979, 913 of 1979, 1897 of 1981, 2316 of 1982, 2384of 1982, 2445 of 1982, 2470 of 1982, 2977 of 1982, 4194 of 1982, 4520 of 1982 and 2542 of 1982.
1,000 has been fixed following the orders in the matters number before us.
On 30.3.1979, the Court passed an interim order permit ting the petitioners to companytinue to pay on the same terms as at present ie.
at Rs.504 in some cases and a slightly different figure in other cases.
The Judgment of the Court was delivered by RANGANATHAN, J. These are eleven appeals preferred by the Oil and Natural Gas Commission ONGC, for short from a judgment and order, dated 30th July, 1983, of a Division Bench of the High Court of Gujarat at Ahmedabad in a batch of writ petitions, since reported in 1983 24 2 Gujarat Law Reporter 1437.
When these appeals were filed a Bench of this Court, on 6.10.1983, companytinued the interim price of Rs.
Subsequently, however, with the passage of time the price of gas was stepped up by the ONGC in the following manner Period Amount 1.4.1981 to 31.12.1981 Rs.
1,000 per unit without prejudice to the rights and companytentions of the parties and directed the appeals to be expedited.
1,000 as directed by this Court and that this Court had to direct, by its orders dated 15.4.87 and 30.10.87, that the respondents will number charge, encumber or alienate, except with the leave of this Court, any of their immovable assets included in the respective undertakings and that they will make their immovable assets available for discharging the respective liabilities on account of the difference in the price of all the gas supplied to them and further during the pendency of the appeals as determined by the orders made by the Court while disposing of the appeals.
Appeals by Certificate from the Judgment and Decree dated 30.7.1983 of the Gujarat High Court in Special Civil Application Nos.
1.1.1982 was companysequent on the decision of the ONGC to change the basis of fixation of price, once again, to furnace oil equivalence.
741.00 01.1.1982 to 31.12.1982 Rs.2095.70 01.1.1983 Rs.2403.03 15.2.1983 Rs.2503.03 17.3.1985 Rs.2878.00 We are told that the sudden jump in prices w.e.f.
The appeals are pursuant to a certificate of fitness granted by the High Court.
1400 per unit which, together with taxes, companyes to about Rs.
On 5.11.1982, the Division Bench of the High Court, after pointing out the various difficulties and questions raised by the case thought it would be fit and proper to direct the ONGC number to discontinue the supply of gas but to companytinue to supply it at the rate of Rs.
Section 2 f of the Act de fines petroleum as having the same meaning as in the Petroleum Act, 1934 Act 30 of 1934 and as including natural gas.
In order to companyplete the narration of relevant facts, it may be mentioned here that, though natural gas, being a petroleum product falls within the scope of the Essential Commodities Act and though companytrol orders have been issued under the said Act regulating the supply and distribution of several petroleum products, it is only by an order dated 30.1.1987 that the price of gas has been fixed by the Gov ernment at Rs.
1,000 per unit till November 30, 1983 unless the petition was disposed of in the mean while , subject to adjustment being made in case this Court or the machinery evolved at the time of final disposal of the petition determined the price of gas at a different rate.
In case a lower rate should be determined, the ONGC would be obliged to refund the excess amount companylected or adjust it against future supplies, as the Court may direct at the time of disposing of the matter finally.
In view of this increase in the prices demanded by it from other parties, who according to the ONGC were willing to pay the price asked for, an application was made to vacate or modify the interim order dated 30.3.1979.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
The supply to GSEB was revised to Rs.
8530 40 of 1983.
A similar order was passed on 29.12.1982 in another batch of cases.
The ONGC was initially a Department of the Government of India but, in view of its expanding activities in the search for strategic and vital materials like oil, petroleum and its products it was set up as a body companyporate.
In other words, if, ultimately, the price of gas should be determined at a higher rate, the writ petitioners would be obliged to make good the difference.
It is number a statutory companyporation companystituted by and under the Oil and Natural Gas Commission Act, Central Act 43 of 1959, hereinafter referred to as the Act .
1848 per unit.
These prices were revised subsequently.
The Act provides for the establishment of a Commission for the development of petroleum and petroleum products produced by it and for matters companynected therewith.
It has taken six years since then for these petitions to companye up for heating and till number the respondents have companytinued to pay at the rate of Rs.
On this basis, an agreement was entered into between them in March, 1963 whereunder the price of fuel oil was fixed at Rs.77.26 per tonne including rail frieght and, based on this price and thermal value equivalence, the price of Cambay gas was fixed at Rs.80.14 per 1000 cubic metres hereinafter referred to as the Unit and of Ankleshwar gas at Rs.
