It said the 2005 family MoU between the Ambani brothers cannot override the public policy on the gas supply and utilisation.
Even the Production Sharing Agreement (PSA) between Mukesh Ambani Group firm RIL and the Government talks about public interest, Additional Solicitor General Vivek Tankha submitted before a Bench headed by Chief Justice K G Balakrishnan.
"The RIL and Anil Ambani's RNRL could arrive at suitable arrangement but it has to be a suitable arrangement for the country approved by the government," he said.
"How could their (Ambanis) MoU override public document which is the PSA. The MoU is a family arrangement while PSA is an arrangement for the country.
"We are concerned with the protection of natural resources which is not limited to this case but for for all times to come. People's right has to be protected," he argued before the Bench, also comprising Justices B Sudershan Reddy and P Sathasivam.
However, the government faced tough time as both the Bench and RNRL questioned its submissions which were purportedly not part of the record in the Bombay High Court.
"Our simple question is what are the material available with you on which you are arguing," the Bench asked the ASG, who said there was nothing on record from government's side before the High Court.