 and NTPC Limite.webp)
The Supreme Court has dismissed an appeal filed by Reliance Industries Limited (RIL) against a Bombay High Court order concerning redaction of portions of evidence affidavits in its long-running commercial dispute with NTPC Limited. The Court also imposed costs of Rs 10 lakh on RIL, noting that the suit has remained at the evidence stage for nearly two decades.
A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe delivered the judgment on August 14, 2026.
Background of the Case
The dispute originated from NTPC's request for bids for the supply of natural gas to its power plants. RIL submitted its financial proposal, following which NTPC issued a Letter of Intent in June 2004. The parties later differed over whether the Letter of Intent resulted in a binding contract for the supply of 132 trillion BTU of natural gas over 17 years.
The commercial suit was filed in 2005 and remained pending through several rounds of litigation. RIL had earlier sought disclosure of NTPC's internal documents and subsequently attempted to introduce its own internal documents into evidence. Courts had repeatedly held that such internal correspondence was not relevant to determining whether a concluded contract existed.
Supreme Court's Earlier Ruling
In 2019, the Supreme Court had already ruled that oral evidence could not be used to indirectly place before the trial court the contents of documents that had earlier been excluded from evidence.
The Court had held that once internal correspondence and related documents were found irrelevant and were not admitted, parties could not bring their contents on record through oral testimony. At the same time, the fact that discussions took place was not itself excluded from evidence.
Court Examines Redacted Evidence
Following that ruling, the Bombay High Court examined the two evidence affidavits paragraph by paragraph. It redacted portions referring to internal emails, communications and meeting discussions that attempted to introduce the contents of excluded documents indirectly.
However, the High Court retained portions that reflected the witness's own perception, state of mind, or correspondence exchanged between the parties. The Supreme Court found that this approach correctly followed its earlier directions.
Supreme Court's Observation
The bench said it was neither in a position nor inclined to reopen the issue already decided by the Supreme Court in 2019. It held that the High Court had correctly understood and applied the earlier directions.
The Court also expressed concern over the prolonged pendency of the commercial suit. It noted that different stages of litigation had consumed several years, while the suit itself had remained pending since 2005 and was still at the evidence stage.
The bench recalled that the Supreme Court had directed in 2019 that the trial be completed within nine months, observing at the time, “We are shocked that trial has been delayed for no good reason.”
Decision
The Supreme Court dismissed RIL's appeal and upheld the Bombay High Court's order. It directed that the commercial suit be taken up and disposed of as expeditiously as possible.
The Court imposed costs of Rs 10 lakh on RIL, payable to the Supreme Court Advocates-on-Record Association within five weeks.
Case Details
Case Title: Reliance Industries Limited v. NTPC Limited
Case Number: Civil Appeal No. of 2026 (Arising out of SLP (C) No. 23417 of 2024)
Judges: Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe
Decision Date: August 14, 2026
-300x169.webp)
