Delhi High Court stays notice issued by petroleum regulator to Adani Total Gas declaring it a common carrier

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A Delhi High Court bench of Chief Justice DN Patel and Justice Jyoti Singh on Monday granted stay of the Public Notices and the Hearing Notice issued by Petroleum and Natural Gas Regulatory Board (“PNGRB”) against Adani Total Gas Limited.

These notices were issued by PNGRB for inviting comments and holding a hearing regarding declaration of Adani’s City Gas Distribution Network for geographical areas of Ahmedabad city and Daskroi Area and Khurja as 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 Carrie or Contract Carrier) Regulations, 2020.

It argued that 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.

Sr. Adv. Darpan Wadhwa representing Adani submitted 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 tariff for such transportation.

According to the petition 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, it states.

The Adani Group was advised and represented by a legal team of Karanjawala & Co. comprising of Ruby Singh Ahuja, senior partner, Hancy Maini, Akanksha Thapa and Lakshya Khanna.

Cause Title: Adani Total Gas Limited vs PNGRB