New Delhi - India's Supreme Court on Tuesday began hearing one of the most keenly watched battles in the country's corporate history involving estranged billionaire brothers Mukesh Ambani and Anil Ambani over gas supplies. A three-judge Supreme Court bench led by Chief Justice KG Balakrishnan started hearing the case in which billions of dollars are at stake between Reliance Industries Ltd, headed by Mukesh Ambani, and Reliance Natural Resources Ltd, led by Anil Ambani, the NDTV network reported.
The action moved to the apex court after Mukesh Ambani rejected his brother's olive branch a week and a half ago and each side hired a battery of some of the highest-paid legal brains for the court showdown.
Mukesh Ambani, 51, India's richest and the world's seventh richest man, is worth 19.5 billion dollars. Anil Ambani, two years younger, is ranked 34th on Forbes magazine's list of the world's richest with a net worth of 10.1 billion dollars.
The dispute relates to the sale of natural gas from Mukesh Ambani's gas field located in the Bay of Bengal to Anil Ambani's Reliance Natural Resources at below-market rates as per a family settlement.
Anil Ambani wants his brother to honour the demerger agreement signed at the time of the split in 2005 of the conglomerate founded by their father, the late legendary industrialist Dhirubhai Ambani.
According to the pact, Anil Ambani wants 28 million cubic metres of gas per day for 17 years at 2.34 dollars per million British thermal unit. However, Anil Ambani's Reliance Industries said it can only sell it for 4.20 dollars per unit, claiming this was the price approved by the government.
The government has joined the court dispute, saying gas was the property of the state and cannot by fought over by two rival companies.
After hearing arguments, the court observed that the two brothers were shadowboxing and later dismissed Mukesh's plea that the legal battle was affecting shareholders.
"It is not a fight between shareholders but company heads. The brothers are shadowboxing," the court stated, according to the NDTV report, before posting the matter for further hearing on Wednesday.
Over the past few months, Anil Ambani has mounted a high-pitched campaign against Mukesh Ambani - accusing him of "greed" and the government of being biased in favour of his brother.
The legal showdown began after Anil Ambani made a surprise truce offer and reached out to Mukesh Ambani, saying he wanted to resolve the dispute amicably.
But Mukesh Ambani objected, saying the dis
