New Delhi, Nov. 4: The Ambani gas case in the Supreme Court will be heard afresh from tomorrow as one of the judges opted out today over potential conflict of interest.

The shock development will set the case back by a week. Mukesh Ambani’s Reliance Industries and brother Anil’s Reliance Natural Resources are contesting the price of gas from Reliance Industries’ fields in the Krishna-Godavari basin.

When the court convened today, Justice R.V. Raveendran said he would have to “recuse” himself as his daughter was working with one of India’s largest corporate law firms, AZB, which advised RIL on its global acquisitions.

Justice Raveendran, who’s heard the case for over a week now along with Chief Justice K.G. Balakrishnan and Justice P. Sathasivam, said he was not aware of AZB’s RIL connection till last evening when he spoke with his daughter.

“I wish someone had brought it to my notice earlier,” he said.

Though the counsel for both RIL and Anil Ambani’s RNRL insisted that he continue with the hearing, Raveendran said he was recusing himself in the “interest of the institution (of the judiciary)”.

Chief Justice Balakrishnan has now taken Justice B. Sudershan Reddy in place of Justice Raveendran for the case.

Today’s development will further delay the hearing as Justice Reddy will have to hear all the arguments presented by RIL.

RIL in a statement tonight regretted the crucial time lost and said it was not aware about AZB employing Justice Raveendran’s daughter.

It was “neither aware nor solicitors firm AZB Partners informed us that Justice R.V. Raveendran’s daughter is associated with the Bangalore office of AZB.

“This fact came as a surprise to our senior counsel (Harish Salve) 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,” the company said.

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The Reliance tag seems to be causing problems in the Supreme Court.

In another case, Justice Markandey Katju opted out of a hearing involving Reliance Industries and Bharat Petroleum Corporation.

Justice Katju cited investments in Reliance Growth Fund and the Reliance Regular Savings Fund by his wife as potential conflict of interest. Justice Katju and Justice Asok Kumar Ganguly were hearing the case.