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2020 Supreme(Kar) 154

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
KRISHNA S. DIXIT, J.
Aikyam Holdings Private Limited – Petitioner
Versus
Karnataka Electricity Regulatory Commission – Respondent
Writ Petition Nos. 28664-28665 of 2018
Decided On : 28-02-2020

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Shridhar Prabhu.
For the Respondents: Sri. B.N. Prakash, Mr. S. Sriranga, Miss. Niloufer Akbar.

Headnote:

Constitution of India, 1950 - Article 12 - Non-production of extract of Log Book - Power Purchase Agreement - Respondents having entered appearance through their Panel Counsel and resist writ petitions by filing separate Statements of Objections - Both learned Panel Counsel make vociferous submission in justification of impugned order they also seek disposal of writ petitions as having become in fructuous in view of compliance of interim order granted by this Court however it is difficult to non-suit petitioners on alleged ground of in fructuousness since it was only an interim arrangement which obviously is subject to final outcome of main matter - Petitioner-company and respondent-BESCOM had concluded Power Purchase Agreement as per Annexure-C is not in dispute said agreement having been submitted by BESCOM for approval earlier was returned by KERC and that later it was re-submitted by seeking approval is also not in dispute - Respondent-KPTCL vide Commissioning Certificate a copy whereof is at Annexure-H specifically certified that Project has been duly commissioned this certificate is not in dispute it refers to Report of Chief Engineer and Report of Chief Electrical Inspector Executive Engineer of respondent-BESCOM vide letter a copy whereof is at Annexure-K also mentions about generation of units of power by petitioner-company – Held, Petitioners that they have been singled out for a differential treatment KERC has granted approval to all Power Purchase Agreements enlisted in Government Order except that of petitioners though Government had recommended for grant of approval strangely projects for which PPAs got KERC approval were not even commissioned till March whereas petitioners PPA was commissioned almost a year before allegation of petitioners is prima facie substantiated by PPA and connected papers of Power Pvt. Ltd copies whereof are at Annexure-M thus impugned order militates against Equality Clause enshrined in Article 14 of Constitution of India this apart KERC having granted approval to other similarly if not less favorably circumstanced PPAs has professed a particular standard by which case of petitioners need to be adjudged Justice Frankfurter of U.S. Supreme Court in VITA-Re-LLI vs. SEATON had observed that an Executive Authority must be rigorously held to standards by which it professes its action to be judged and that such Authority must scrupulously observe professed standards on pain of invalidation of an Act in violation thereof this principle is accepted as a norm of our legal system by Apex Court - Last contention of respondents that a Coordinate Bench of this Court vide judgment in identical Writ Petition between Surya Energy Photo Voltaic India Private Limited vs. State of Karnataka and Others has denied relief to litigant therein and therefore petitioners herein too being similarly circumstanced cannot be granted relief is untenable true it is that learned Co-ordinate Judge in said case held that approval of PPA by KERC is a sine qua non for its acquiring enforceability essential lies in case at hands is different from one there this Court has not only has no quarrel with ratio of said decision but these writ petitions are structured on said ratio itself an argument by petitioners a bit in variance therewith notwithstanding said case is not an authority for proposition that a party to PPA can never challenge denial of approval thereto by KERC Lord Hals bury more than a century ago in celebrated case - Now before discussing case of Allen vs. Flood A.C. 1 and what was decided therein there are two observations of a general character which court wish to make and one is to repeat what court have very often said before that every judgment must be read as applicable to particular facts proved or assumed to be proved since generality of expressions which may be found there are not intended to be expositions of whole law but governed and qualified by particular facts of case in which such expressions are to be found - Other is that a case is only an authority for what it actually decides – Court entirely deny that it can be quoted for a proposition that may seem to follow logically from it - Such a mode of reasoning assumes that law is necessarily a logical Code whereas every lawyer must acknowledge that law is not always logical at all - Writ petitions succeed

ORDER :

1. First Petitioner company and the 2nd petitioner shareholder owning and operating an 8 Mega-Watt Renewable Energy (Wind) based Power Project are knocking at the doors of Writ Court for laying a challenge to the order dated 29.05.2018 made by the 1st respondent-KERC at Annexure-A in O.P. No. 28/2018 whereby the approval to the subject Power Purchase Agreement, has been denied; petitioners inter-alia have also sought for a Writ of Mandamus to the KERC to approve the said Power Purchase Agreement.

2. After service of notice, the respondents having entered appearance through their Panel Counsel and resist the writ petitions by filing separate Statements of Objections. Both the learned Panel Counsel make vociferous submission in justification of the impugned order; they also seek disposal of the writ petitions as having become infructuous in view of compliance of interim order granted by this Court; however, it is difficult to non-suit the petitioners on the alleged ground of infructuousness since it was only an interim arrangement which obviously is subject to final outcome of the main matter.

3. Having heard the learned counsel for the parties and having perused the petition papers, this Court grants indulgence in the matter for the following reasons:

(a) petitioner-company and the respondent-BESCOM had concluded the Power Purchase Agreement on 01.03.2017 as per Annexure-C, is not in dispute; the said agreement having been submitted by the BESCOM for approval earlier, was returned by the KERC and that later it was re-submitted by the seeking approval, is also not in dispute.

(b) the respondent-KPTCL vide Commissioning Certificate dated 28.03.2017, a copy whereof is at Annexure-H, specifically certified that the Project has been duly commissioned on 28.03.2017; this certificate is not in dispute; it refers to the Report dated 28.03.2017, of the Chief Engineer and the Report dated 25.03.2017, of the Chief Electrical Inspector; the Executive Engineer of respondent-BESCOM vide letter dated 19.01.2018, a copy whereof is at Annexure-K also mentions about generation of 511 units of power by the petitioner-company on 28.03.2017.

(c) the version of the respondent-KERC that the actual injection of the power energy into the grid is an essential ingredient for claiming the commercial operation, is not much in dispute; however, no such generation of power took place during anytime between 29.03.2017 and 31.03.2017, is only a half truth, not fairly stated by the KERC on 28.03.2017, petitioner-company had generated the energy that entered the grid stands prima facie established going by what is already mentioned in the proceeding paragraphs at (a) and (b) above.

(d) the only ground for the KERC to disbelieve the assertion of the petitioner as to generation of 511 units of energy on 28.03.2017 is that no evidentiary material was produced by him to vouch the same; petitioner has specifically stated and the same was not disputed by the BESCOM that, the Meter at the Delivery Point having a high Multiplying Constant of 1,50,000 would not record the flow of paltry 11 units of power into the grid; non-production of extract of Log Book maintained by the BESCOM/KPTCL for the period between 29.03.2017 and 31.03.2017 is mischievously irrelevant when there is an uncontroverted version as to the flow of 511 units of energy into the grid at 23:03:25 and 23:18:28 hours on 28.03.2017.

(e) twice, the Power Purchase Agreement was submitted for the approval of KERC and both the times the file was returned on the inarticulate premise that the Electricity Supply Companies entering into PPA was detrimental to their interest inasmuch as the increased drawal of renewable energy would result in backing down of the new Thermal Power Stations commissioned in the State and that it would result in the payment of fixed costs without drawing energy from such plants; the other reason was that the tariff of the Wind Energy Projects across the Country had come down, significa

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