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2002 Supreme(AP) 472

Andhra Pradesh High Court
Judges : DALAVA SUBRAHMANYAM, R.M.BAPAT
R.V.K.Energy Pvt.Ltd., Hyderabad - Appellant
Versus
A.P.S.E.B.,hyderabad - Respondent
Decided On : 04-02-02

Headnote:

Constitution of India , 1950 - Article 226 - A. P. Electricity Reform Act, 1998 - Section 14 - Electricity (Supply) Act, 1948 - Section 43-A - Reform Act - Section 39 - Indian Electricity Act, 1910 - Section 28 (1) - Mini Power Plant - Apply for licence/exemption - Seeking exemption from the requirement of a licence - A. P. State Government formulated a policy for augmenting power supply to ensure industrial growth by setting up of Mini Power Plants by private entrepreneurs under certain terms and conditions as given in G. O. Ms. No. 116, Energy (Power) Department, dated - It was subsequently revised and modified in respect of certain matters and a fresh Energy (Power) Department, dated was issued by the State Government - State Government vide its order dated authorised appellant company to set up a Mini Power Plant in State of Andhra Pradesh with an installed capacity of 32. 7 MW and to supply power to identified industrial consumers - Order was passed in accordance with Section 18-A of Electricity (Supply) Act, 1948 and sanction was accorded for supply of energy and the permission was granted under to sell electricity to identified consumers - Appellant herein that one of the objects of the said Act was to allow participation of private sector in Electricity Industry for generation, transmission and supply of electricity. Under the Reform Act, the Regulatory Commission was constituted - In August Regulatory Commission issued a notification directing all power producers to apply for licence/exemption or face action including imprisonment as spelt out in notification – Held, learned senior counsel relied upon observations made by Author Wade in his book on Administrative Law, 7th Edition, which reads as under -Review and appeal contrasted - The system of judicial review is radically different from system of appeals - When hearing an appeal Court is concerned with the merits of decision under appeal - Powers under Article 226 of Constitution of India as Court are deciding the appeal under section 39 of Reform Act - But, in present case, we are required to set aside order on the ground that the order passed by Regulatory Commission itself is beyond the scope of prayer made by appellants companies for granting exemption and directing them to supply the energy produced by them only to APTRANSCO - It is an admitted fact that applicant had applied for exemption under the Act - Under these circumstances only duty of Regulatory Commission was to grant exemption or giving finding as to whether such application is required or not - That was the issue before Court - But writing a big order, Regulatory Commission at least in impugned order have exceeded its jurisdiction and therefore Court are inclined to set aside said impugned order - Appeals are allowed.

RAMESH MADHAV BAPAT, J.

( 1 ) IN all the three Civil Misc. Appeals a common point is involved except a little variation in the appeals and, therefore, they are disposed of by a common judgment.

( 2 ) THE aforesaid appeals are filed against the orders of the Andhra Pradesh Electricity Regulatory Commission (for brivity "regulatory Commission" ). C. M. A. No. 1458 of 2000 is filed against the order passed in O. P. No. 2 of 1999 dated 31-3-2000 by a Company known as M/s. R. V. K. Energy (P) Ltd. , and C. M. A. No. 1553 of 2000 is filed by the share holders and consumers of the appellant company in C. M. A. No. 1458 of 2000. C. M. A. No. 2062 of 2000 is filed by a company known as M/s. Astha Power Corporation (P) Ltd. , It is necessary to narrate the background of this litigation. The A. P. State Government formulated a policy for augmenting the power supply to ensure industrial growth by setting up of Mini Power Plants by private entrepreneurs under certain terms and conditions as given in G. O. Ms. No. 116, Energy (Power) Department, dated 5-8-1995. It was subsequently revised and modified in respect of certain matters and a fresh G. O. Ms. No. 152, Energy (Power) Department, dated 29-11-1995 was issued by the State Government. In pursuance of the policy directives contained in G. O. Ms. No. 152, the appellant company in C. MA. No. 1458 of 2000 made an application for setting up of a Mini Power Plant. The State Government vide its order dated 29-2-1996 authorised the appellant company to set up a Mini Power Plant in the State of Andhra Pradesh with an installed capacity of 32. 7 MW and to supply power to identified industrial consumers. The order was passed in accordance with Section 18-A of the Electricity (Supply) Act, 1948 and the sanction was accorded under section 28 (1) of the Indian Electricity Act, 1910 for supply of energy and the permission was granted under section 43-A of the Electricity (Supply) Act, 1948 to sell the electricity to identified consumers.

( 3 ) IT is the further case of the appellant herein that originally the generation, transmission and supply of electricity was governed by the Indian Electricity Act, 1910 and the Electricity (Supply) Act, 1948. The State Government promulgated the A. P. Electricity Reform Act (in short " Reform Act") as the subject matter falls under the Concurrent List of the Constitution of India and came into force with effect from 1/02/1999.

( 4 ) IT is the further case of the appellant herein that one of the objects of the said Act was to allow participation of private sector in Electricity Industry for generation, transmission and supply of electricity. Under the Reform Act, the Regulatory Commission was constituted in April 1999. In August 1999 the Regulatory Commission issued a notification directing all power producers to apply for licence/exemption or face action including imprisonment as spelt out in the notification.

( 5 ) IT is the further case of the appellant herein that in response to the notification dated 20-9-1999, the appellant company made an application under section 16 of the Reform Act to the Regulatory Commission seeking exemption from the requirement of a licence as contemplated under the Reform Act. The application of the appellant company was numbered as O. P. No. 2 of 1999. Meanwhile the A. P. Transco sought approval of wheeling agreement. On 13-12-1999 the Regulatory Commission issued a notice asking the appellant company to show cause as to why G. O. Ms. No. 15 should not be made applicable to the appellant company. The APTRANSCO and the State Government filed affidavits before the Regulatory Commission contending that the appellant had been authorised to put up Mini Power Plant under G. O. Ms. No. 152 dated 29-11--1995 and G. O. Ms. No. 15 dated 9-3-1998, was not applicable to the appellant. The Regulatory Commission heard the appellant as well as the APTRANSCO and passed an interim order on 3-1-2000 approving the wheeling agreement between the appell

















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