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Reliance contests gas ruling

India's Reliance Industries said today it would appeal to the Supreme Court against a ruling that it should enter into a gas supply agreement with former group firm Reliance Natural Resources.

In June the Bombay High Court had ruled that Reliance Industries, controlled by billionaire Mukesh Ambani, and Reliance Natural, headed by estranged younger brother Anil Ambani, should enter into a supply agreement.

Reliance Industries, India's top listed firm, was asked to supply gas to Reliance Natural at nearly half the price given under an interim ruling, the latter's lawyer had said in a Reuters report.

"We have been advised to and are filing appropriate proceedings in the Supreme Court against the judgment delivered by the Bombay High Court on 15 June 2009," Reliance Industries said in a statement.

Yesterday Reliance Industries said it could not sign the gas supply agreement with Reliance Natural Resources as it wanted the terms such as price, quantity and tenure to be subject to government approval.

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