Delhi HC stays Notices issued By PNGRB to Adani’s company for declaration of its City Gas Distribution Network as a common and contract carrier


New Delhi Feb 14 (LAB) In a big relief to Adani Total Gas Limited (ATGL) the Delhi High Court today granted a stay on the Public Notices and the consequent Hearing Notice issued by Petroleum and Natural Gas Regulatory Board (“PNGRB”) to the company.

The Division Bench of Chief Justice DN Patel and Justice Jyoti Singh stayed 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 the next date of hearing

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 by the PNGRB under the (Guiding Principles for Declaring City or Local Natural Gas Distribution Network as Common Carrier or Contract Carrier) Regulations, 2020.

Senior Advocate Darpan Wadhwa, appearing on behalf of Adani Group argued that the aforesaid 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.

The Adani Group was advised and represented by a legal team of advocates from Law firm Karanjawala & Co. comprising of Advocates Ms. Ruby Singh Ahuja, Ms. Hancy Maini, Ms. Akanksha Thapa, and Mr. Lakshya Khanna.

The Petitioner (an entity operating City Gas Distribution Networks covering Geographical Area (GA) in multiple states including Gujarat, Tamil Nadu, Karnataka, Orissa, Rajasthan, Madhya Pradesh, and Uttar Pradesh) challenged the Regulations notified by the PNGRB Regulatory Board (Guiding Principles for Declaring City or Local Natural Gas Distribution Networks as Common Carrier or Contract Carrier) Regulations, 2020 (“Guiding Principles Regulations”); and (b) the Petroleum and Natural Gas Regulatory Board (Meetings of the Board) Amendment Regulations, 2020 (“Meetings Amendment Regulations”)./Lab/SNG