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2017 Supreme(SC) 1475

ARUN MISHRA, L.NAGESWARA RAO
Monnet Ispat & Energy – Appellant
Versus
Union of India – Respondent


Advocate Appeared:
For the Appellants :Devashish Bharuka, Justine George, Lakshmi Raman Singh, Raunak Jain, C.U. Singh, Sr. Adv., Mahesh Agarwal, Rishi Agrawala, Vivek Jain, Rajesh Kumar For E.C. Agrawala, Advocates.
For the Respondents:C.K. Rai, Umesh Prasad, Mohit Rai, A.P. Mayee, Chirag Jain, Gopal Choudhari, Ms. Liz Mathew For (M/s. Mclm & Co.), Ms. Liz Mathew, Ms. Kritika Sachdeva, Ms. Kirti Dua, For G.S. Makker, Advocates.

ORDER :

Leave granted.

2. The vires of Rule 3(1)(a)(ii) of the Electricity Rules, 2005 (hereinafter referred to as `the Rules of 2005') was questioned before the High Court. The same has been upheld. Hence, the appeals.

3. In a nutshell, Appellant's averments before High Court are thus. Being an incorporated Company, it had set up a Captive Generating Plant, having a capacity of 90. M.W., at its premises situated at Naharpali in Raigarh, for its own use. A show cause notice dated 10.08.2009 was issued by respondent 2- Chhatisgarh State Electricity Commission-to the appellant, stating that as the appellant had consumed less than 51 % of the power produced by its own plant, it ceased to be a captive generation plant and that, therefore, the consequences listed in the show cause notice would follow, including that the appellant would be required to obtain "open access" under Section 42 (2) of the Electricity Rules, 2003.

4. It was contended before High Court that a Captive Generating Plant can not loose its character and status as such a plant when, due to force majeure events, it could not, in the interregnum, consume for its own use, 51 % of the power generated. It was pleaded that resp






























































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