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OPINION
The GM-Head HR of the Oil and Natural Gas Corporation
(hereinafter referred to as ONGC) vide his note dated 23rd June 2015 on
Page No. 23 has placed the following facts for seeking my opinion as to
the course of action to be adopted in relation to the 23 First Appeals filed in
the Honble Gujarat High Court.
FACTS
After the verdict of Reference Court, 23 First Appeals were filed in
the Honble Gujarat High Court, albeit the Asset Legal advised not to file
appeals in the High Court. However, ignoring the advice and also without
seeking approval of the competent authority, LAQ section proceeded to file
applications for condonation of delay along with appeals against the
decision of the Reference Court.
The LAR cases, which were examined by ONGC Panel Adv. Shri Rituraj
Meena and suggested fit for Appeal, had two variables:
1. The interest was calculated by the Reference Court for the entire
period i.e. Date of taking on Rent till depositing the amount.
2. Difference of Sp. LAO Award amount and judgment amount passed
by the Reference Court was very high.
It was also suggested that the Appeal would have the following benefits:
1. ONGC will save money not only in these cases, but many cases,
which are in the judgment stage where the interest is given on the
entire period.
2. It will also set a precedent for the Lower Court to only consider the
interest from the date of Notification under Section 4 of LA Act.
On 07.01.2015, the amount of Rs. 1,92,900/- was directly paid to the
credit of Adv. Rituraj Meena, towards court fees. Vide Message dated
19.01.2015, Adv. Rituraj Meena further requested to remit an amount of
Rs. 22,500 toward Court fees, but the same has not been deposited yet.
The amount of excess rent paid in the 8 LARs i.e. 27 cases is
Rs.7,60,784 only but the financial burden on ONGC towards court fees,

advocates fees and 15% interest burden on delay in payment will be far
more in crores.
Therefore, the opinion from Chief Legal has been sought for the
future course of action relating to these First Appeals, as there is no
financial viability to pursue them. Also, what will be repercussions if the 23
Appeals are withdrawn from the Honble High Court?
OPINION
The Honble Gujarat High Court in Misc. Application in First Appeals
No. 3330 to 3331 of 2014, directed the appellant (ONGC) to deposit the
amount with interest from the date on which the appellant is ceased to pay
the rent to the opponent, so actually the benefit number 2 and benefit
number 1 (partly) is already served through this recent development i.e. it
has set a precedent for the Lower Court to only consider the interest from
the date of Notification under Section 4 of LA Act.
Also, ONGC is incurring interest liability @15% on these appeals.
From the total cost/ benefit analysis, it is clear that the Corporation would
save not more than Rs.8 Lakhs whereas the interest that the Corporation
will be paying per month to the beneficiaries/ farmers are much higher and
is in Crores.
Clearly, even if these Appeals are allowed, the Corporation would
loose Crores of money in terms of interest, cost of litigation, advocate fees
etc. In view thereof, it is apparent that there is no financial viability to
pursue these 23 Appeals and the same should be withdrawn immediately.
On the other side there will be no repercussions whether financial or legal
for the Corporation in doing the same. Therefore, the Appeals should be
immediately withdrawn and the refund of court fees should be seeked.
I trust this shall clarify the matter.
Nikhil Guliani
New Delhi
July 21, 2015