The Delhi HC Yesterday 4th April, affirmed the Appellate Tribunal for Electricity’s ruling permitting Reliance Industries to participate in the BPCL-HPCL pipeline case. This decision, dismissing BPCL’s appeal, centers on the pipeline’s designation as a common carrier for petroleum transportation, challenged by PSU oil companies. RIL’s claim, based on its initiation of the process, highlights its interest in the issue, which faces opposition from PSU firms. Despite objections from the oil companies, the tribunal approved RIL’s participation in the proceedings.
New Delhi: The Delhi High Court yesterday, granted relief to Reliance Industries by supporting the decision of the Appellate Tribunal of Electricity (Aptel). Specifically, the court designated the petroleum and petroleum product pipelines of BPCL and HPCL as common carriers. Moreover, Reliance Industries permitted to join as a party to these proceedings. Common carrier pipelines handle a range of energy products like crude oil and natural gas while providing transportation services to various users.
BPCL and HPCL opposes it, whereas Reliance argues that since the process originated due to RIL’s initiative, it has a vested interest in it. A division bench consisting of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora rejected BPCL’s appeal and upheld the single judge’s order, which declined to intervene in the Aptel decision.
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The PSU oil companies raised a question before Aptel regarding whether the project qualifies as a contract carrier for petroleum and petroleum product pipelines according to Section 20 of the PNGRB Act. This project specifically initiated by them for the exclusive transport of Aviation Turbine Fuel (ATF) from the Mumbai Refinery to their storage tanks at Mumbai International Airport.
The oil companies contended that permitting RIL to join as plaintiffs would invite interference from all relevant parties, including airlines.
In contrast, RIL argued that,
“Since it initiated the entire process, it clearly has a stake in the matter and cannot be excluded.“
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RIL’s legal representatives argued that,
“The board chosen not to designate the pipelines as contract carriers, RIL would have appealed such a decision. Furthermore, by having the option to appeal, RIL would have become a necessary and appropriate party in the appellate process”
BPCL and HPCL sought relief from Aptel, contesting the Petroleum and Natural Gas Regulatory Board’s decision.