VidhiSangh

Supreme Court of India · 28/09/2021

ADANI GAS LIMITED versus UNION OF INDIA & ORS.

[2021] 13 S.C.R. 1146 · 2021 INSC 558

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Summary

The Court upheld Regulation 18 governing pre-existing city-gas networks lacking Central Government authorisation. Deemed authorisation under Section 16 was subject to Chapter IV, including Section 17, and protected only centrally authorised entities; State permissions did not confer that status. The earlier Adani Gas ruling was overruled. All Regulation 18 criteria required composite consideration, with context-sensitive weight. Adani’s acceptance of restricted authorisation and subsequent unsuccessful bid also barred its inconsistent challenge. The appeals were dismissed with Rs.10 lakh costs payable to the Union.

Issues

  1. Which pre-existing entities qualified for deemed authorisation under Section 16 of the PNGRB Act.
  2. Whether Regulation 18 was arbitrary or beyond the Board’s statutory powers and how its criteria should be applied.
  3. Whether Adani could challenge the excluded areas after accepting authorisation and unsuccessfully bidding for them.

Provisions considered

Held

Result

Appeals dismissed. Regulation 18 upheld and earlier Adani Gas ruling overruled; exclusion of disputed areas sustained. Adani to pay Rs.10 lakh costs to the Union of India.

Judgment PDF: Supreme Court of India, [2021] 13 S.C.R. 1146.