Sun. Sep 20th, 2020

Deepak Fertilizers And … vs Union Of India & Ors. on 7 July, 2015

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VIBHU BAKHRU, J

1. The petitioner company is engaged in the business of manufacturing
of complex fertilizers, i.e. Phosphatic & Potash (P&K) fertilizers, by using
natural gas being supplied to the petitioner company from various domestic
sources. Initially, the petitioner was allocated 0.6 mmscmd of natural gas
from oil fields of ONGC, Tapti Basin and Pana-Mukta and on 27.10.2009,
the Empowered Group of Ministers (hereafter ‘EGoM’) further allocated
0.178 mmscmd of natural gas to the petitioner from KG-D6 Basin. The
petitioner has filed the present petition, inter alia, challenging a letter dated

01.05.2014 of the Department of Fertilizers (hereafter ‘DoF’) and a letter
dated 13.05.2014 of the Ministry of Petroleum and Natural Gas (hereafter
‘MoPNG’) directing that the supply of gas to the petitioner be discontinued
and diverted to urea manufacturing units facing shortfall of natural gas. The
petitioner has also challenged an Office Memorandum dated 06.01.2014,
issued by DoF, seeking recovery of undue benefits from the petitioner on
account of use of cheap domestic gas in the production of complex
fertilizers. The letters dated 01.05.2014 and 13.05.2014 are hereafter also
referred to as impugned orders. The decision to suspend supply of gas to
the petitioner is hereafter referred to as the impugned decision.

Source: Indian Kanoon

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