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2018 Supreme(AP) 855

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATES OF TELANGANA AND ANDHRA PRADESH
V. Ramasubramanian, P. Keshava Rao, JJ.
Eastern Power Distribution Company of Andhra Pradesh Ltd. - Appellant
Vs.
Gmr Vemagiri Power Generation Ltd. - Respondent
Writ Petition No. 15848 of 2015, 19894 of 2015, 7965 of 2016, 11353 of 2016, 14254 of 2016, 22850 of 2016, 35039 of 2016, 35386 of 2016, 35401 of 2016, 38137 of 2016, 38140 of 2016, 38163 of 2016, 38169 of 2016, 38217 of 2016, 45376 of 2016, 45378 of 2016, 7965 of 2016 of 2017, 11353 of 2016 of 2017, 14254 of 2016 of 2017, 22850 of 2016 of 2017, 35039 of 2016 of 2017, 35386 of 2016 of 2017, 35401 of 2016 of 2017, 38137 of 2016 of 2017, 38140 of 2016 of 2017, 38163 of 2016 of 2017, 38169 of 2016 of 2017, 38217 of 2016 of 2017, 45376 of 2016 of 2017, 8143 of 2017, 14033 of 2017, 25761 of 2017, 30274 of 2018, 36266 of 2018
Decided On : 31-12-2018

Advocates Appeared:
S. Ravi, Adv., S. Niranjan Reddy, Adv., Gopal Chowdary, Adv., A. Sudershan Reddy, Adv., Vedula Venkata Ramana, Adv., Y. Rama Rao, Adv.

Headnote:

Andhra Pradesh Reorganisation Act, 2014 Section 101- Electricity Act, 2003 - Section 76(1) Section 76(2) - Electricity Regulatory Commissions Act, 1998 - Whether disputes that arose between the power generating companies and the power distribution companies before the bifurcation of the State, are liable to be adjudicated either by the Central Electricity Regulatory Commission or by the Andhra Pradesh Electricity Regulatory Commission or by the Telangana Electricity Regulatory Commission - Held, Under Section 111 (6), appellate Tribunal has revisional jurisdiction, suo motu and otherwise over the State as well as the Central Commissions - Section 121 of Act, 2003 confers power upon the appellate Tribunal, to issue such orders, instructions, or directions, to any appropriate Commission for the performance of its statutory functions - CERC is held entitled to decide the disputes covered by the said order, on merits after giving opportunities to all the parties - Petitioner to approach CERC for redressal of their grievances - TSERC and APERC to transfer the pending proceedings to the file of the CERC for adjudication - Writ petition allowed. Para 75, 76

Facts of the Case:

Disputes between the parties have actually arisen out of Power Purchase Agreements entered into between the Generations/Transmission Companies on the one hand and the Distribution Companies on the other

Finding of Court:

Under Section 111 (6), appellate Tribunal has revisional jurisdiction, suo motu and otherwise over the State as well as the Central Commissions - Section 121 of Act, 2003 confers power upon the appellate Tribunal, to issue such orders, instructions, or directions, to any appropriate Commission for the performance of its statutory functions - CERC is held entitled to decide the disputes covered by the said order, on merits after giving opportunities to all the parties - Petitioner to approach CERC for redressal of their grievances - TSERC and APERC to transfer the pending proceedings to the file of the CERC for adjudication

Result : Writ petition allowed

JUDGMENT :

V. Ramasubramanian, J.

All these writ petitions raise a common question as to whether the disputes that arose between the power generating companies and the power distribution companies before the bifurcation of the State, are liable to be adjudicated either by the Central Electricity Regulatory Commission (hereinafter referred to as CERC) or by the Andhra Pradesh Electricity Regulatory Commission (hereinafter referred to as APERC) or by the Telangana Electricity Regulatory Commission (hereinafter referred to as TSERC).

2. We have heard Mr. Dammalapati Srinivas, learned Advocate General for the State of Telangana, Mr. B.S. Prasad, learned Advocate General for the State of Telangana, Mr. S. Ravi, and Mr. S. Niranjan Reddy, learned senior counsel appearing for the petitioners, Mr. Gopal Chowdary, learned counsel appearing for the petitioners, Mr. A. Sudhershan Reddy, learned senior counsel appearing for one of the contesting respondents, Mr. Vedula Venkata Ramana, learned senior counsel appearing for Central Electricity Regulatory Commission, Mr. Y. Rama Rao, learned standing counsel appearing for TSERC.

3. There are actually 21 writ petitions on hand. Out of them two writ petitions challenge one order of CERC dated 27-04-2015; one writ petition challenges an order of the CERC dated 15-06-2016; eight writ petitions challenge one order of the APERC dated 28-09- 2016; one writ petition challenges a second order of APERC dated 18-02-2017; four writ petitions challenge an order of TSERC dated 31-10-2016; and other five writ petitions are for miscellaneous prayers, including a prayer for a declaration as to which of the Electricity Regulatory Commissions have the jurisdiction to adjudicate upon the disputes between the Power Generating Companies and Power Distribution Companies.

4. Thus, there are actually five writ petitions which do not challenge any order and 16 writ petitions, which challenge five different orders, two passed by CERC, two passed by APERC and one passed by TSERC. The common thread of facts that runs through all these writ petitions can be summarized as follows:

(i) The Andhra Pradesh State Electricity Board was established in the year 1959, under the provisions of the Electric Supply Act 1948, for the purpose of generating and distributing electricity in the State of Andhra Pradesh.

(ii) After the Government of India liberalized the policy of regulation of power sector, the State of Andhra Pradesh enacted the A.P. Electricity Reforms Act, 1998 for the purpose of constitution of an Electricity Regulatory Commission, restructuring of the electricity industry and rationalization of the generation, transmission, distribution and supply of electricity avenues for the participation of private sector in the industry. In terms of the provisions of the State Act, two Corporations, viz., A.P. Power Generation Corporation Limited (APGENCO), and Transmission Corporation of A.P. Limited (APTRANSCO), came to be established on 01-02-1999. A commission known as "Andhra Pradesh Electricity Regulatory Commission" was also established under the Act. Incidentally this State enactment under which a Regulatory Commission was created, came at around the same time when a similar enactment was made by Parliament which came into effect on 25-04-1998.

(iii) On and from 01-04-2000, the Transmission Corporation of Andhra Pradesh Limited got unbundled into five entities, viz., (1) APTRANSCO; (2) Andhra Pradesh Eastern Power Distribution Company Limited; (3) Andhra Pradesh Southern Power Distribution Company Limited; (4) Andhra Pradesh Central Power Distribution Company Limited; and (5) Andhra Pradesh Northern Power Distribution Company Limited.

(iv) In the year 2003, the Parliament enacted the Electricity Act, 2003, consolidating the laws relating to generation, transmission, distribution, trading and use of electricity, and for the constitut

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