KG DISPUTE BACK TO SQUARE ONE

Judge's recusal triggers fresh Ambani spat Legal Eagles Jethmalani, Salve In War Of Words THE Supreme Court found itself in the middle of a dramatic and unprecedented controversy, after a judge recused himself from the legal battle between the Ambani brothers. One of India's most high-profile lawyers, Ram Jethmalani, representing Anil Ambani's RNRL, accused Reliance Industries of precipitating this. These allegations were robustly denied by RIL and triggered a ferocious war of words between the two camps.      Mr Jethmalani, a rambunctious lawyer known for plain-speaking and occasional sensational claims, alleged late on Wednesday, that India's largest private sector company had somehow engineered a decision by Justice RV Raveendran to recuse himself because his daughter was employed in the Bangalore office of AZB, a law firm which sometimes advises RIL.      Harish Salve, RIL's lawyer responded strongly, accused Mr Jethmalani of hitting a "new low". "Nothing coming from Mr Jethmalani surprises. If it was somebody whose statements were to be taken seriously, it would have upset me but (being ) Mr Jethmalani I can treat it with the contempt it deserves. Mr Jethmalani has hit a new low, and this is nothing but an attempt to create a new controversy," Mr Salve told ET NOW. In a statement, the Mukesh Ambani-led firm said: "Reliance Industries was neither aware nor AZB Partners informed us that Honourable Justice Raveendran's daughter is associated with the Bangalore office of AZB. This fact came as a surprise to our senior counsel and us. AZB Partners, which has been advising us from time to time, should have informed us of this fact, and RIL regrets that six working days of the Honourable court were lost."      Mr Jethmalani claimed that RIL had been in touch with the media and had asked them to be present in the court on Wednesday because there would be, as he put it "a sensational development". "We never imagined that what would happen is the recusal of one of our excellent judges." Lawyers divided over Raveendran's decision  MR JETHMALANI claimed that RIL had been discomfited by the fact Justice Raveendran was asking "inconvenient questions ". Mr Salve strongly denied this. "Justice Raveendran is one of our most respected judges and appearing before him has been and will be a pleasure. Questions always bring out the best in me. It is far from being inconvenient, rather it is very helpful."      In 1992, Mr Jethmalani had famously alleged that Harshad Mehta, a corrupt stock broker, had paid a bribe of Rs 1 crore to PV Narasimha Rao, the then prime minister. The allegations were never proven.      Some of India's most famous lawyers differed on whether Justice Raveendran should have recused himself. Former attorney-general Soli J Sorabjee told ET: "Justice Raveendran's daughter is working for a corporate law firm in Bangalore, which is neither associated with nor has given any advice regarding the current dispute between the Ambani brothers in the SC. It would not be a ground for Justice Raveendran recusing himself. However, ultimately it is a matter entirely for the judge." Another famous lawyer, Fali Nariman, however, said that the judge was right to step down. "It's best to step down in situations like these."      Gopal Jain, an SC advocate, said the recusal needed to be seen in a positive light. "When a judge recuses himself, it has to be seen in a positive light, rather than dragging him into a controversy," Mr Jain told ET NOW.      The evening's histrionics should set a dramatic backdrop when legal proceedings resume on Thursday.      According to the cause list of the apex court that deals with the cases to come up for hearing, Justice B Sudershan Reddy will be the new judge of the three-judge bench. Chief Justice KG Balakrishan and Justice P Sathasivam are the other two judges.      The Ambani brothers are engaged in a legal battle over supply of gas from RIL's KG basin fields to Anil Ambani's RNRL. RNRL is seeking gas at $2.34 per mmBtu based on a 2005 family agreement, but RIL has refused to sell at this price, saying it needs government approval. The government had in 2007 approved $4.20 per mmBtu as the price for KG gas.      Justice Reddy owns no shares and has no investments in mutual funds, according to declaration of assets by SC judges posted on the apex court's website on Monday. He is one of the five judges of the apex court, including Chief Justice KG Balakrishnan, who have no investments in stock markets.      "This is not a question of convenience. It is to maintain the dignity of the court, I am recusing myself from this case," said Justice Raveendran, turning down requests from lawyers representing RIL and RNRL.      Justice Raveendran had earlier offered to withdraw from hearing the dispute, saying he held equal number of shares in each company.      In court, both Mr Salve and Mr Jethmalani requested Justice Raveendran to continue hearing the case on the ground that arguments were heard by the bench for six days. But later in the day, Mr Jethmalani alleged that both Mr Salve and the government's lawyer had shown little interest in persuading the judge to change his mind.      "I am sorry for wasting the valuable time of the court. But in view of subsequent developments, I am recusing myself," said Justice Raveendran.      Justice Raveendran said: "Only yesterday (Tuesday) evening I came to know that my daughter is working for a Bangalore-based firm AZB, which is advising one of the parties involved here." Justice Raveendran further said his daughter had joined the firm on September 1. When she came to know about this, she informed him on Tuesday evening. However, the law firm has nothing to do with the current case, Justice Raveendran clarified. Mr Salve said that AZB is advising RIL on global acquisitions.      When Justice Raveendran did not agree to continue hearing the case, Mr Jethmalani suggested that the matter could be heard by the other two judges who had heard the arguments. Rejecting this, Justice Balakrishnan said the case needed to be heard by a three-judge bench in view of its importance.      Mr Salve and Mr Jethmalani then agreed to work out a new schedule for the case. Mr Salve said he would start his argument on Thursday and continue next week, a total of 3-4 more days. "Whatever will be left we will exchange through written submissions," he said.      The government will then take a day or two after the conclusion of RIL arguments. This will be followed by RNRL's lawyers, Mr Jethmalani and Mukul Rohatgi. The hearing in the case may be concluded by the end of November. The case will be heard only on Tuesdays, Wednesdays and Thursdays. NOTHING COMING FROM MR JETHMALANI SURPRISES. IF IT WAS SOMEBODY WHOSE STATEMENTS WERE TO BE TAKEN SERIOUSLY, IT WOULD HAVE UPSET ME BUT (BEING ) MR JETHMALANI I CAN TREAT IT WITH THE CONTEMPT IT DESERVES  HARISH SALVE, RIL LAWYER WE NEVER IMAGINED THE RECUSAL OF ONE OF OUR JUDGES. HE WAS ASKING INCONVENIENT QUESTIONS WHICH WERE NOT TO THE LIKING OF RIL  RAM JETHMALANI, RNRL LAWYER