In Brief
The Supreme Court upheld a 2007 government policy that unified prices of regasified liquefied natural gas (RLNG) across all long-term contracts on a non-discriminatory basis. Steel companies that had contracted for fixed-price gas challenged this, arguing the government lacked authority to unilaterally change contract terms without legislation. The Court held that the Union, under Article 73 read with the Constitution's petroleum regulatory entry, has power to make such policy decisions. The policy was taken after detailed inter-ministerial consultation, was properly authenticated, and applied uniformly to all long-term purchasers. Dismissing the appeals, the Court noted that courts must show restraint in reviewing economic policy decisions absent evidence of arbitrariness or unconstitutionality, and that the contracts themselves contained provisions allowing price revision upon government policy changes.
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