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2012 Supreme(SC) 2731

SUPREME COURT OF INDIA
DALVEER BHANDARI, V.S. SIRPURKAR, DEEPAK VERMA, JJ.
Petroleum & Natural Gas Reg.Board – Appellant
Versus
Indraprastha Gas Ltd. & Anr. - Respondents
Petition(s) for Special Leave to Appeal (Civil) No(s).5408 of 2010
Decided on : 12-05-2011

Advocates:
Advocate Appeared:
For the Appellant : Dr.Rajeev Dhawan, Sr.Adv., Dr.Madan Sharma, Adv., Ms.Divya Roy, Adv., Ms.Asha Upadhyay, Adv., Mr. R.D. Upadhyay, Mr.Shikhar Vats, Mr. D.A.Dave, Sr.Adv., Dr.Madan Sharma, Ms.Divya Roy, Ms.Asha Upadhyay, Mr.R.D.Upadhyay, Adv.
For the Respondent: Mr.Ranjit Kumar, Sr.Adv, Mr.K.K.Rai, Sr.Adv, Mr. Bimal Roy Jad,Adv, Mr.S.K.Pandey, Adv, Mr.Vikram Rathore, Adv, Mr.K.K.Rai, Sr.Adv, Mr.B.R.Jad, Adv, Mr.S.K.Pandey, Adv, Mr.K.K.Venugopal, Sr.Adv, Mrs.Neelima Tripathi, Adv, Mr. K.V.Mohan, Adv, Mr.Vivek Tankha,Sr.Adv, Mr.Pratul Shandilya, Adv, Mr.Rishabh Sancheti, Adv, Mr.Sumeer Sodhi, Adv, Mr.Vaishnav Srivastav, Adv, Mr.Vivek Tankha, ASG, Mr.Harish Chandra, Sr.Adv, Mr.R.K.Rathore, Adv, Mr.Mukesh Verma, Adv, Mr.Arvind Kumar Sharma, Adv, Mr.K.K.Venugopal, Sr.Adv, Mr.P.H.Parekh, Sr.Adv, Mr.Shyam Divan, Sr.Adv, Ms.Aspi Kapadia, Adv, Mr.Sameer Parekh, Adv, Mr.Carmichael Martin, Adv, Mr.Arjun Garg, Adv, Mr.Kumar Shashank, Adv. For M/S. Parekh & Co,Advs, Mr.Soli Sorabjee, Sr.Adv. Junion Luwary,Adv, Mr. Santosh Mishra, Adv, Mr. Prashant Bhushan, Adv, Mr.K.K.Sharma, Sr.Adv, Mr.Abhay Kumar, Adv, Mr.Mukesh Kumar, Adv, Mr.Prem Prakash, Adv.

The main legal point established in the judgment is the court's authority to direct the functioning of the Petroleum and Natural Gas Board in accordance with the provisions of the Petroleum and Natural Gas Regulatory Board Act, 2006.

Headnote:

Petroleum and Natural Gas Regulatory Board Act, 2006 - Board's Functioning - Court directs processing of pending applications and new applications by Multi-Member Board

Fact of the Case:

The court directed the Petroleum and Natural Gas Board to process all pending and new applications through a Multi-Member Board, with a temporary replacement for a specific member and a restriction on dealing with applications where authorization has already been granted.

Finding of the Court:

The court found that Section 16 of the Petroleum and Natural Gas Regulatory Board Act, 2006 had come into force, and directed the Board to function with a Multi-Member Board, temporary replacement of a member, and a restriction on certain applications.

Issues: Board's functioning, processing of pending and new applications, temporary replacement of a member, restriction on dealing with certain applications

Ratio Decidendi: The court's decision was influenced by the provisions of the Petroleum and Natural Gas Regulatory Board Act, 2006, specifically Section 16, and the need for a Multi-Member Board to handle pending and new applications.

Final Decision: The court directed the Board to process pending and new applications through a Multi-Member Board, with a temporary replacement for a specific member and a restriction on dealing with applications where authorization has already been granted.

ORDER :

1. This Court, on 15.3.2010, while issuing notice, ordered that the Board may process all pending applications and may not pass final orders. It may be pertinent to mention that Section 16 of the Petroleum and Natural Gas Regulatory Board Act, 2006 did not come into force when the Delhi High Court’s judgment was delivered.

2. Dr.Rajeev Dhawan, learned senior counsel appearing for the Petroleum and Natural Gas Board submits that vide Notification dated 12.07.2010, Section 16 of the said Act has come into force.

3. We direct that all pending and new applications shall be dealt with by a Multi-Member Board. Similarly, all new applications to be filed in future will also be dealt with by the same Board.

4. Learned Additional Solicitor General assures the Court that vacancies, if any, would be filled within four weeks from today.

5. We deem it appropriate to direct that for the present Mr.B.S.Negi, Member (Technical) may not participate in the deliberations of the Board meetings. We make it absolutely clear that we are not casting any aspersions on Mr.Negi. The concerned respondent would be at liberty to nominate another Member (Technical)on temporary basis in place of Mr.Negi.

6. The Board shall not deal with the applications Where authorisation has already been granted.

7. List these matters in July, 2011 for further directions.

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