SC asks Deepak Fertilisers not to take coercive steps against govt official

New Delhi, July 5: The Supreme Court on Tuesday asked Pune-based Deepak Fertilisers and Petrochemicals Corporation (DFPCL) not to take coercive steps against a government official for failing to comply with the Delhi High Court’s decision that directed resumption of supply of gas to its fertiliser plant in Maharashtra.

A bench headed by Justice Gopala Gowda, while refusing to stay the proceedings before the high court (HC), restrained DFPCL from taking any coercive steps like seeking the arrest of Anuj Kumar Bishnoi, secretary (chemicals & petrochemicals), in its contempt petition. It also posted the matter for further hearing in August.

Both DFPCL and the government have filed cross-appeals against the single judge's order of July 7 last year that observed that it was incumbent upon the government to implement its policy “uniformly and without discrimination” for all P&K fertiliser units.

“It is not open for the respondents (govt) to suspend the supply of gas to the petitioner (DFPCL) while continuing the same to other P&K manufacturing units, namely, Rashtriya Chemicals and Fertilisers Limited (RCF) and Gujarat State Fertiliser Corporation Limited (GSFC),” the single-judge bench had said.

Attorney General Mukul Rohatgi told the bench that the HC judgment was “unsustainable” as on one hand it says that the courts cannot interfere with the policy decision of the government, on the other it also asks it to resume supply of gas to DFPCL till the Central government is in a position to implement its policy to discontinue gas supply to P&K (Phosphatic & Potash) fertiliser and other units as well.

Challenging the HC order, the government stated that the single judge had failed to appreciate that its approach to discontinue the gas supply to P&K fertilisers manufacturing units is necessary to reduce the heavy burden of subsidy being borne by it.

Justifying supply of gas to both RCF and GSFC, the ministry in its appeal stated that both are integrated plants producing urea along with P&K fertilisers, thus stoppage of gas to them would adversely affect the urea production. It further said DFPCL, which produces nitrogen phosphorus and potassium (NPK) based fertilisers, is exclusive manufacturer of P&K fertilisers.

DFPCL had moved the HC seeking remedial measures against the government's May 2014 order to Reliance Industries and GAIL (India) to stop the supply to its plant in Raigad district, calling it arbitrary and unfair.

The company had also challenged the letters of department of fertilisers and MoPNG issued in May 2014 directing that the supply of gas to DFPCL be discontinued and diverted to urea manufacturing units facing shortfall of natural gas. The Centre has stopped supply of subsidised domestic natural gas to the Pune-based firm, saying that since the firm sold its products at market prices, the subsidy was not warranted.