Don't see a settlement in RIL-RNRL case soon: SP Tulsian

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The government has filed its affidavit in the Reliance Industries (RIL) and Reliance Natural Resources (RNRL) case, reports CNBC-TV18, quoting sources. It states that the Ambani brothers don't have the authority to fix prices without seeking government approval.

Commenting on the issue, SP Tulsian of sptulsian.com said that it is too premature to say that the Ambani brothers will agree on an out-of-court settlement.

Here is a verbatim transcript of the exclusive interview with SP Tulsian on CNBC-TV18. Also watch the accompanying video.

Q: Is this inline with expectations? This has been Reliance Industries' stand, isn't it?

A: This is very much inline with expectation because the matter is now posted before the Supreme Court. There will be a decision on whether the government will continue as a respondent or as an intervener.

All the parties have been given time till Saturday morning, for the government also, to file the affidavit and that they have done it one day before. The matter will be heard by the Supreme Court on Monday morning for admission because two special leave petitions (SLP) have been filed by RNRL and Reliance Industries. They will be taken or will be bunched together though they have been filed separately. So this is a routine procedure that Saturday is the deadline for that, the parties have to file the affidavits. The bench will comprise of two-three judges as constituted by the chief justice.

Q: This whole RNRL business started at the time of settlement between the two brothers. What are the chances that RNRL is bought out by RIL and the matter is finished-off because this is going back and forth. It is a family feud. What are the chances that RNRL goes back to RIL pay them the money and Anil Ambani does whatever he has to do at that point?  

A: If both the brothers have the inclination to settle. Both brothers should agree, sit across the table and agree to settle. Suppose in that event if an x-amount is arrived at which could be Rs 15,000 crore, Rs 17,000 crore or Rs 18,000 crore can get paid by Reliance Industries by acquiring the stake held by RNRL.

Q: Is it a likely scenario in your mind?

A: That maybe too mature at this stage. First, it will definitely get fought in the Supreme Court and if you ask me over a longer-term horizon I am not ruling out that possibility. The settlement is the only solution because if the high court single bench judge and the division bench judge has not been or they have been kept impressing upon even the government have said that on the various occasions that both brothers should settle. So I am not ruling out that possibility but this maybe premature at this stage.