Delhi HC stays notices issued by PNG Regulatory Board to Adani Total Gas
Feb 14, 2022
New Delhi [India], February 14 : The Delhi High Court on Monday stayed public notices and hearing notice issued by the Petroleum and Natural Gas Regulatory Board to Adani Total Gas Limited regarding the declaration of its City Gas Distribution Network as a common carrier and contract carrier.
The bench of Justice DN Patel and Justice Jyoti Singh on Monday granted a stay of the public notices along with the consequent hearing notice issued by the Petroleum and Natural Gas Regulatory Board ("PNGRB") to the Adani Total Gas Limited.
These notices were issued by PNGRB for inviting comments and holding a hearing regarding the declaration of the Adani's City Gas Distribution Network for geographical areas of Ahmedabad city and Daskroi Area and Khurja as a common carrier or contract carrier.
Adani Total Gas Limited challenged the notices issued under the PNGRB (Guiding Principles for Declaring City or Local Natural Gas Distribution Network as Common Carrier or Contract Carrier) Regulations, 2020. Plea said the notices were issued, ultra vires the PNGRB Act and suffered from procedural ultra vires as they were passed in the absence of Member (Legal) of the Board.
After noting down the submissions, the court on Monday passed the order staying the operation and implementation of the Public Notices dated September 13, 2021 and Hearing Notice dated January 20,2022 issued by PNGRB to Adani till next date of hearing.
Senior Advocate Darpan Wadhwa appeared and argued on behalf of Adani Group. The Adani Group was advised and represented by a legal team of Karanjawala and Co. comprising Ruby Singh Ahuja, Hancy Maini, Akanksha Thapa and Lakshya Khanna Advocates.
Petitioner company further sought direction to restrain the PNGRB from making/amending any Regulations by relying on the Meetings Amendment Regulations and in the absence of Member (Legal) of the PNGRB.
The Petitioner also challenged the Guiding Principles Regulations being ultra vires the provisions of the Petroleum and Natural Gas Regulatory Board Act, 2006 ("PNGRB Act"). It stated that by virtue of the Meeting Amendment Regulations the quorum of members has been reduced from three to two members and has resulted in a substantial change in the decision-making process of the Board.
As per the earlier unamended Regulations, out of the five members of the Board, the presence of a minimum of three members was necessary for a meeting of the Board and decisions were supposed to be taken by the majority. With the Meeting Amendment Regulations, now only two members can constitute the quorum, stated the plea.
Making the quorum of the Board meeting as two would be contrary to the basic structure of the Board and also against the basic principles of decision-making by voting as well as contrary to the provisions of the PNGRB Act itself, read the petition.
