ONGC loses Rs 8-cr legal conflict using Sabar Dairy | Vadodara News


Sabar Dairy in Himmatnagar

Vadodara: ONGC has dropped a 27-year old legal battle to Sabarkantha District Cooperative Milk Producers’ Union Ltd, popularly called Sabar Dairy, to recover more than Rs 8 crore in the Himmatnagar-based milk combined over a dispute concerning natural gas rates.
Although the court announced ONGC’s argument that it was entitled to control the cost according to its agreement with the milk product and that it should also have the cost gap of Rs . 33 crore, the simple fact that it didn’t matter notice to the registrar of cooperative culture caused the suit becoming ignored.
According to ONGC’s claim, the milk marriage had to cover the cost difference to it thanks to change in government policy on pricing of gas along with a lawsuit on precisely the exact same issue. The PSU and also the combined society had entered into the arrangement from Vadodara in June 1985 for distribution of natural gas. According to the arrangement, the cost was decided by ONGC and the gasoline was supplied from April 1987. But prior to the distribution began, the government of India (GoI) issued a notification that it might determine the uniform cost of gasoline.
Even following the telling once the true gas distribution began in December 1987, ONGC issued invoices at the rate determined by it while the milk marriage made payments in the cost fixed by GoI. Throughout the hearing of this situation, the milk marriage asserted it had reminded ONGC to revamp the cost clause, however its officials gave oral assurances.
Meanwhile, in May 1990 that the Supreme Court enabled ONGC to resolve the purchase price of gas. ONGC advised the court that following the apex court’s order it requested the milk marriage to generate payment of difference between the agreed price and the true payment completed. However, since the marriage didn’t cover the cost gap, ONGC chose the lawful recourse.
The milk marriage claimed its case according to a single part of Gujarat Cooperative Societies Act. It claimed that according to department 167 of the legislation, ONGC must have issued notice to the registrar of cooperative societies because the dispute is impacting its organization.
The action makes it compulsory to issue the notice to the registrar first so that combined societies aren’t dragged into litigation.
dependent on the arguments and submissions produced by both entities, the courtroom of industrial and senior civil judge G J Shah ignored the case. The court observed that ONGC isn’t eligible for its own claims as the situation itself isn’t maintainable because the compulsory note beneath the Gujarat Cooperative Societies Act wasn’t issued.


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