The Delhi High Court, in a significant interim order, has granted protection from coercive action to Petronet LNG Limited (PLL) and GSPC LNG Limited (GLL) in their challenge to the Petroleum and Natural Gas Regulatory Board’s (PNGRB) Registration Regulations, 2025. These regulations, notified on 8 May 2025 and effective from 13 May 2025, mandate registration of all entities establishing or operating LNG terminals across India, including facilities in Dahej, Mundra (Gujarat) and other locations.
A Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Anish Dayal passed the interim order in response to petitions challenging not only the 2025 Regulations but also the PNGRB (Eligibility Conditions for Registration of Liquefied Natural Gas Terminal) Rules, 2012. The petitioners argued that the Rules and Regulations unlawfully equate registered LNG terminals to common carrier infrastructure, a classification not envisioned under the parent statute i.e the PNGRB Act, 2006.
The petitioners contended that entities that had already established or were operating LNG terminals before the “Appointed Day” (defined as 25 June 2007, when the Board was established) are expressly exempted from registration under the proviso to Section 15(1) of the Act. They further argued that the PNGRB cannot mandate separate registration for each terminal when the Act requires registration only of entities, not individual terminals.
A key aspect of the challenge was also the requirement under the new regulations to disclose confidential and commercially sensitive information, which the petitioners claimed goes beyond the scope of the parent Act and risks significant prejudice. They asserted that these obligations, introduced through delegated legislation, are invalid as they conflict with the statutory framework.
Taking note of these submissions, the Court observed that prima facie, the petitioners are not required to seek registration under the impugned regulations, in view of the proviso to Section 15(1). As an interim measure, the Court directed that no coercive steps shall be taken against the petitioners for non-registration or for non-submission of information under the 2025 Regulations. The issue of whether such information can be sought by the PNGRB, and whether it qualifies as confidential, was kept open for detailed adjudication at a later stage.
Appearances in the case:
Petitioners: Mr. Parag Tripathi, Sr. Advocate alongwith Mr. Saurav Agrawal, Mr. Trinath Tadakamalla, Ms. Nisha Bhatia, Ms. Jewer Bhateja, Mr. Anshuman Chaudhry, Ms. Prachi Dubey, Mr. Shivam and Ms. Astha Gaur, Advocates.
Respondents: Mr. K.M. Nataraj, ASGI alongwith Mr. Sanyat Lodha, Ms. Sanskriti Bhardwaj, Mr. Suyash Gaur, Ms. Harshita Tomar, Mr. Vinayak and Ms. Yashika Bhardwaj, Advocates for PNGRB/R-1.
Mr. Rakesh Kumar, CGSC alongwith Mr. Sunil, Advocate and Mr. Vedansh Anand, G.P. for UOI/R-2.
