1. The applicants, who were allotted a specified quantity of natural gas by the Government of India, Ministry of Petroleum and Natural Gas, to be supplied by the Gas Authority of India Limited, which is a Government of India undertaking, have come up the above applications under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim orders of injunction restraining Gas Authority of India Limited from raising debit notes for the gas supplied during the period from 06.6.2006 to 31.5.2010, pursuant to the letters issued to each one of them on 29.11.2011, pending disposal of the arbitration proceedings.

2. I have heard M/s. R.Yashod Vardhan, Mr. AR.L.Sundaresan, Mr. P.S. Raman, learned Senior Counsel and Mr. Vinod Kumar, learned counsel appearing for the applicants and Mr. M. Ajmalkhan, learned Senior Counsel for the respondent.

3. Under separate agreements, entered into in the year 2000, the respondent agreed to supply to the applicants, a fixed quantity of gas, as allotted by the Government of India. The period of validity of the agreements was fixed generally as 31.12.2010, though in individual cases, there were some variations. The agreements provided for the extension of the period of contract. Insofar as the price of gas is concerned, Article 10 of the agreements stipulated that up to 31.3.2000, the price as fixed by the Government of India under a Pricing Order dated 18.9.1997 would be adopted. After 31.3.2000, the respondent reserved the right to fix the price as per the directives, instructions or Orders of the Government of India. It was also stated that the price was likely to be market related in accordance with current policy of liberalisation of the Government of India.

4. In other words, (i) the quantity of gas to be supplied to each of the applicants was determined by the Government of India, by individual letters of allotment; and (ii) the price payable by the applicants was to be in accordance with the Pricing Orders issued by the Government of India from time to time. The agreements also contained a clause for resolution of disputes through arbitration.

5. From the time the applicants entered into Gas Supply Contracts with the respondent, till the year 2005, there were no issues. But, on 20.6.2005, the Government of India issued a Pricing Order bearing No.L-12015/5/-4-GP(I), revising the pricing methodology that was in force from 18.9.1997. The decisions communicated by the Pricing Order dated 20.6.2005, which are relevant for the purpose of our present case, are as follows:

"(iii) Power and fertilizer sectors are critical to the economic development of the country and the output price of these sectors is either controlled or regulated by the Central and State Governments, who have to bear subsidy to a large extent for any increase in the output price. The specific end users committed under Court Orders/small scale consumers having allocations upto 0.05 MMSCMD also deserve priority in gas supply. Accordingly, it has been decided in the public interest that all available APM gas would be supplied to only the power and fertilizer sector consumers against their existing allocations along with the specific end users committed under Court orders/small scale consumers having allocations upto 0.05 MMSCMD at the revised price of Rs.3200/MCM. This price would be linked to a calorific value of Rs.10,000 K.cal/cubic.metre. However, the gas price for transport sector (CNG), Agra-Ferozabad small industries and other small scale consumers having allocations upto 0.05 MMSCMD would be progressively increased over the next 3 to 5 years to reflect the market price.

(iv) Consumers other than fertiliser, power and specific end users committed under Court Orders/Small scale consumers having allocations upto 0.05 MMSCMD and getting existing gas supplies through GAIL network, would be supplied natural gas at market related price depending on the producer price being paid to joint venture and private oper