The Bombay High Court on Wednesday refused to stay an interim order barring Reliance Industries [Get Quote] from selling gas from its KG basin field to any other firm except Anil Ambani's RNRL and state-run NTPC, but allowed government to go ahead with the process of fixing the price of fuel.

A division bench of Justices J N Patel and Ahmed Sayed also adjourned by eight weeks, the hearing on RIL's appeal against the previous interim order.

The court, however, said the government can go ahead with the process of fixing of gas as per the contract for the field, without any prejudice to either party.

RIL had challenged Justice A M Khanvilkar's interim order restraining it from selling 40 million standard cubic meters of gas per day to be produced in Krishna Godavari gas field, which RNRL says has been committed to it for its power plants.

In May, Khanvilkar had restrained RIL from entering into any contract for supplying to a third party the 28 mmscmd

committed by RIL to RNRL under the demerger scheme.

RNRL has alleged that due to lack of commitment to supply the gas on RIL's part its 7480 MW Dadri power project could not be set up.