Delhi HC stays notices in relation to declaring Adani gas distribution network as common carrier

Adani Total Gas | Representative image

The Delhi High Court on Monday stayed the notices issued by Petroleum and Natural Gas Regulatory Board (PNGRB) in connection with declaring Adani Total Gas Limited's City Gas Distribution Network for Ahmedabad city, Daskroi, and Khurja as a common carrier or contract carrier.

The interim order was passed by a bench of Chief Justice DN Patel and Justice Jyoti Singh on the petition by the company challenging the Board's Public Notices dated September 13, 2021, and the consequent Hearing Notice January 20.

Adani Total Gas Limited, represented by senior advocate Darpan Wadhwa, has contended that the notices were ultra vires the PNGRB Act and suffered from procedural defects as they were passed in the absence of Member (Legal) of the Board. The company explained that while City Gas Distribution (CGD) Network refers to the infrastructure laid down by a company for supplying gas, a common carrier is a pipeline that is used by more than one entity for gas transportation by paying tariffs for such transportation.

The petitioner, also represented by senior partner Karanjawala & Co, Ruby Singh Ahuja, asserted that in the present case, the PNGRB has not shown any necessity to declare its CGD network as a common carrier or contract carrier and issued the notices to it in a mechanical manner. The notices were issued under the PNGRB (Guiding Principles for Declaring City or Local Natural Gas Distribution Network as Common Carrier or Contract Carrier) Regulations, 2020.

The issuance of the Impugned Notices by PNGRB is a mechanical exercise of power under the sub-judice Guiding Principles without any adequate reason or basis, leading to an unfair situation where serious prejudice is unduly caused to the Petitioner. The Impugned Notices have been issued in a manner and procedure not adhering to the statute, the petition said. The petition, which has also challenged 2020 Regulations, will be heard next on March 29.