Renew Power Private Ltd. Bikaji Came Place Delhi vs State Of Karnataka

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2021 Supreme(Kar) 924

IN THE HIGH COURT OF KARNATAKA
S.R. Krishna Kumar, J.
Renew Power Private Ltd. Bikaji Came Place Delhi – Appellant
Versus
State Of Karnataka – Respondent
Writ Petition No. 5703 of 2020c/W, Writ Petition Nos. 5303 of 2020, 5341 of 2020, 5346 of 2020, 5347 of 2020, 5354 of 2020, 5357 of 2020, 5361 of 2020, 5362 of 2020, 5364 of 2020, 5365 of 2020, 5368 of 2020, 5369 of 2020, 5371 of 2020, 5374 of 2020, 5375 of 2020 (Gm-Keb)
Decided On : 02-12-2021

Advocates Appeared:
Shodhan Babu, Advocate, Sajjan Poovayya, Advocate, Kusum Ranganath, Advocate, Amrita Joshi, Advocate, Ramesh Gowda, Advocate, Shahbaaz Husain, Advocate, S. Sriranga, Advocate, Murugesh V.Charati, Advocate, S.G. Prashanth Murthy, Advocate.

Headnote:(A) Electricity Act, 2003 - Section 61(h) and 86(1)(e) - Contractual obligations under Power Purchase Agreements (PPAs) - Petitioners, renewable energy generating companies, claim payments from ESCOMs for supplied electricity and dispute resolution under PPAs. The court ruled that ESCOMs must comply with PPA obligations, directing timely payment and opening of letters of credit for compliance. (Paras 1-3, 8-9)

(B) Writ Jurisdiction - Maintainability - The court determined that no dispute existed requiring resolution by KERC, thus affirming its jurisdiction to hear contractual claims against ESCOMs, emphasizing public interest. (Paras 6-8)

(C) Public Interest - The court observed that non-payment by ESCOMs affects the renewable energy sector and public welfare, establishing a precedent for future compliance. (Paras 8-9)

Findings of Court:
ESCOMs are directed to discharge obligations and pay all outstanding dues to petitioners without delay, reinforcing the contractual nature of their duties and emphasizing the public function of electricity supply.

Issues: The court addressed the maintainability of writ petitions against ESCOMs in contractual matters while recognizing the effect on public interest and constitutional obligations.

Ratio Decidendi: The ESCOMs cannot evade duties owed under PPAs, and their consistent failure to pay is arbitrary, violating Article 14 (right to equality).

Result: All writ petitions allowed; ESCOMs directed to fulfill contractual obligations and ensure timely payments going forward.

JUDGMENT :

1. These batch of writ petitions which are filed by the petitioners who are renewable energy generating companies involved in the business of independent power production and establishing and operating power plants, while petitioners in some of the petitions are operating solar power plants, petitioners in the other petitions are operating wind power plants. The subject matter of all the petitions are Power Purchase Agreements (PPAs) entered into between the petitioners and the various Electricity Supply Companies (ESCOMs), who are arrayed as respondent No.2 in these petitions.

2. The details of the petitioners, PPAs, relevant clauses etc., are as under;-

PETITIONS (WIND) - PPA CLAUSES DETAILS

Sl. Nos.	WP No.	SPV	Respondent ESCOM	Wind / Solar	PPA Clause for payment of Invoice	PPA Clause for Late Payment Surcharge	PPA Clause for Payment obligation	PPA clause for opening Letter of Credit	PPA Clause for monthly Joint Meter Reading	Dispute Redressal Mechanis m Clause
1	5703 of 2020 (Lead Petition)	Rajat Renewa bles	HESCOM	Wind	Clause 6.2/ Page 44 of Petition	Clause 6.3 / Page 44 of Petition/ 1.25% PM	Clause 6.4/Page 44 of Petition / Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 45 of Petition	Clause 7.3/ Page 46 of Petition	Clause 10
2	5303 of 2020	Renew Wind Energy (Sipla)	HESCOM	Wind	Clause 6.2/ Page 44 of Petition	Clause 6.3 / Page 44 of Petition/ 1.25% PM	Clause 6.4/Page 44 of Petition/Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 45 of Petition	Clause 7.3/ Page 46 of Petition	Clause 10
3	5341 of 2020	Kanak Renewa bles	HESCOM	Wind	Clause 6.2/ Page 44 of Petition	Clause 6.3 / Page 44 of Petition/ 1.25% PM	Clause 6.4/Page 44 of Petition/Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 45 of Petition	Clause 7.3/ Page 46 of Petition	Clause 10
4	5346 of 2020	Rajat Renewa bles	GESCOM	Wind	Clause 6.2/ Page 46 of Petition	Clause 6.3 / Page 46 of Petition/ 1.25% PM	Clause 6.4/Page 46 of Petition/ Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 47 of Petition	Clause 7.3/ Page 48 of Petition	Clause 10
5	5347 of 2020	Rajat Renewa bles	HESCOM	Wind	Clause 6.2/ Page 44 of Petition	Clause 6.3 / Page 44 of Petition/ 1.25% PM	Clause 6.4/Page 44 of Petition/ Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 45 of Petition	Clause 7.3/ Page 46 of Petition	Clause 10
6	5354 of 2020	Ostro Dakshi n	GESCOM	Wind	Clause 6.2/ Page 44 of Petition	Clause 6.3 / Page 44 of Petition/ 1.25% PM	Clause 6.4/Page 44 of Petition/ Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 45 of Petition	Clause 7.3/ Page 46 of Petition	Clause 10
7	5362 of 2020	Renew Wind Energy (Sipla)	HESCOM	Wind	Clause 6.2/ Page 44 of Petition	Clause 6.3 / Page 44 of Petition/ 1.25% PM	Clause 6.4/Page 44 of Petition/ Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 45 of Petition	Clause 7.3/ Page 46 of Petition	Clause 10
8	5364 of 2020	Bidwal Renewa ble	GESCOM	Wind	Clause 6.2/ Page 48 of Petition	Clause 6.3 / Page 48 of Petition/ 1.25% PM	Clause 6.4/Page 48 of Petition/ Obligation to pay 100% of the disputed amount	Clause 6.5/ Page 49 of Petition	Clause 7.3/ Page 51 of Petition	Clause 10
9	5365 of 2020	Pugalur Renewa ble	GESCOM	Wind	Clause 6.2/ Page 47 of Petition	Clause 6.3 / Page 47 of Petition/ 1.25% PM

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2021 Supreme(Kar) 924

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