POWER GRID CORPORATION OF INDIA vs TAMIL NADU GENERATION AND DISTRIBUTION CO. LTD.

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2019 Supreme(SC) 561

N.V.RAMANA, MOHAN M.SHANTANAGOUDAR, INDIRA BANERJEE
POWER GRID CORPORATION OF INDIA – Appellant
Versus
TAMIL NADU GENERATION AND DISTRIBUTION CO. LTD. – Respondent

Advocates Appeared:
For the Appellant :Mr. Pramod Dayal, Advocate and Mr. K. V. Mohan, Advocate
For the Respondent:Mr. Sunil Fernandes, Advocate, Mr. Nupur Kumar, Advocate, Ms. Anju Thomas, Advocate, Mr. Zeeshan Diwan, Advocate, Mr. Darpan Sachdeva, Advocate, Ms. Priyansha Indra Sharma, Advocate, Mr. Siddhartha Chowdhury, Advocate, Mr. A.S. Bhasme, Advocate, Mr. Gopal Prasad, Advocate, Mr. Ashok Kumar Singh, Advocate, Mr. Pradeep Misra, Advocate, Mr. T.Harish Kumar, Advocate, Mr. Ashiesh Kumar, Advocate, Mr. P.V.Dinesh, Advocate, Mr. Devashish Bharuka, Advocate, Mr. Justine George, Advocate, Mr. Ravi Bharuka, Advocate, Ms. Sarvshree, Advocate, Ms. Divya Roy, Advocate and Mr. Saurabh Mishra, Advocate

JUDGMENT

N.V. Ramana, J.

Civil Appeal No. 684 of 2007

1. The present appeal arises out of the decisions of the Central Electricity Regulatory Commission, New Delhi ["CERC"] wherein an issue relating to capitalization of Foreign Exchange Rate Variation ["FERV"] was determined by the Commission and thereafter affirmed in a review petition, vide orders dated 30.06.2003 and 04.12.2003 respectively. On appeal, the Appellate Tribunal for Electricity, New Delhi vide judgment dated 04.10.2006 in Appeal Nos. 135-140 of 2005, approved the methodology for ascertaining the FERV; however, with respect to apportionment of the FERV, the appeal was allowed and FERV was directed to be apportioned only in respect of debt liability. It is this judgment of the Appellate Tribunal for Electricity, New Delhi which is in challenge before us.

2. The appellant is a transmission company which plans, executes and makes available transmission systems for conveyance of power from one place to another. The tariff which it charges for the conveyance is fixed by the CERC. FERV is a pass through which is kept to ensure that any liability or gain by virtue of fluctuation in foreign exchange rates passes to the beneficia

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2019 Supreme(SC) 561

N.V.RAMANA, MOHAN M.SHANTANAGOUDAR, INDIRA BANERJEEPOWER GRID CORPORATION OF INDIA – AppellantVersusTAMIL NADU GENERATION AND DISTRIBUTION CO. LTD. – Respondent

Cases Referred (1)

N.V.RAMANA, MOHAN M.SHANTANAGOUDAR, INDIRA BANERJEE
POWER GRID CORPORATION OF INDIA – Appellant
Versus
TAMIL NADU GENERATION AND DISTRIBUTION CO. LTD. – Respondent