HC stays notices in relation to declaring GAIL gas distribution network as a common carrier

The Delhi High Court Tuesday stayed the notices issued by Petroleum and Natural Gas Regulatory Board (PNGRB) in connection with declaring GAIL Gas Ltd and its subsidiaries' City Gas Distribution Network 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 of January 20.

The company in its plea said these notices were issued by PNGRB for inviting comments and holding a hearing regarding the declaration of the geographical areas as a common carrier or contract carrier.

The company, represented through senior advocate Darpan Wadhwa and Karanjawala and co., said GAIL Gas Limited and its subsidiaries 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 contended that the notices were ultra vires the PNGRB Act and suffered from procedural ultra vires as they were passed in the absence of Member (Legal) of the Board.

In the plea, the petitioner 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 tariff for such transportation.

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