Denying relief to Indraprastha Gas Ltd
, the Delhi High Court on Wednesday refused to stay the Petroleum and Natural Gas Regulatory Board (PNGRB) order, which slashed the network tariff and CNG compression charge on sale of piped natural gas (PNG) and CNG.
"We are not staying the (PNGRB) decision. Put up for final arguments on April 19," a bench of Acting Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw said.
Appearing for oil regulator PNGRB
, Additional Solicitor General A S Chandhiok assured the court that no coercive steps would be taken against the state-owned IGL during the pendency of the petition before the bench.
The IGL, sole supplier of PNG and CNG in Delhi and its suburbs, has moved the high court against the PNGRB order which has slashed network tariff and CNG compression charge and asked IGL to refund the excess amount charged by it from consumers since 2008.
Senior advocate Ashok Desai, appearing for IGL, said the gas distributor has challenged the constitutional validity of the decision of PNGRB, which has no right to decide the rate of network tariff and CNG compression charge.
"It (right to fix the rate) is simply beyond the right of PNGRB," Desai said, adding that the decision to slash the rate with retrospective effect would lead to a financial burden to the tune of Rs 1,500 crore "which is more than the net worth of the IGL".