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2017 Supreme(Guj) 1123

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R. Subhash Reddy, Vipul M. Pancholi, JJ.
Indian Wind Energy Association - Appellants
Vs.
Gujarat Urja Vikas Nigam Limited (GUVNL) & Ors. - Respondents
Letters Patent Appeal No. 1914 of 2017 In Special Civil Application No. 19312 of 2017 With Civil Application No. 14244 of 2017
Decided On : 14-11-2017

Advocates Appeared:
For the Appellants : Mr. Mihir Thakore, Mr. Amit K. Dave, Mr. K.T Dave
For the Respondents: Mr. Kamal Trivedi, Mr. Premal R. Joshi

Headnote:

Civil Procedure – Appeal under clause Letters Patent is filed by appellant herein original petitioner in Special Civil Application was filed under Article 226 and 227 of Constitution of India aggrieved by the order of learned Single Judge – Learned Single Judge dismissed petition filed by appellant herein original petitioner – Court may be pleased to issue writ of certiorari or any other appropriate writ to quash and set aside entire competitive bidding process that has come to be initiated respondents in particular by respondent as well as impugned order dated at Annexure-A” passed by respondent approving bidding process – Held, Court careful in dealing with matters of exercise of inherent powers when interest of consumers – Interest of consumers as an objective, can be clearly ascertained from Act – Preamble of Act mentions protecting interest of consumers” and Section 61 requires that interests of consumers are to be safeguarded Appropriate Commission specifies terms and conditions for determination of tariff – Under Section 64 read with Section 62, determination of tariff is to be made only after considering all suggestions and objections received from public – Application stands disposed.

JUDGMENT :

R. SUBHASH REDDY, J.

This appeal, under clause 15 of the Letters Patent, is filed by the appellant herein - original petitioner in Special Civil Application No. 19312 of 2017, which was filed under Article 226 and 227 of the Constitution of India, aggrieved by the order of the learned Single Judge dated 03-06/11/2017. By the aforesaid order, the learned Single Judge dismissed the petition filed by the appellant herein - original petitioner.

2. Above petition was filed with the prayers, which read as under:—

7(A) This Hon'ble Court may be pleased to admit and allow this petition.

(B) This Hon'ble Court may be pleased to issue writ of certiorari or any other appropriate writ to quash and set aside the entire competitive bidding process that has come to be initiated by the respondents, in particular by the respondent No. 1, as well as the impugned order dated 6/10/2017 at Annexure-A” passed by the respondent No. 2, approving the bidding process.

(C) Pending admission, hearing and final disposal of this petition, this Hon'ble Court may be pleased to stay the operation, implementation and execution of order of the Gujarat Electricity Regulatory Commission, dated 06/10/2017 as well as the competitive bidding process initiated by the respondent no. 1.

(D) To pass such other and further orders necessary in the interest of justice.”

3. The appellant herein is a Association representing the interest of stakeholders in the wind energy sector across various States of India. In the petition, the petitioner has questioned the action of respondent no. 1 in imitating competitive bidding process in exercise of powers conferred under Section 63 of the Electricity Act, 2003 and also it has questioned the order dated 06.10.2017 passed by the Gujarat Electricity Regulatory Commission. By the aforesaid order dated 06.10.2017, 3rd respondent - Commission granted approval to the bidding process undertaken by the 1st respondent for the purpose of fixation of tariff.

4. Before we proceed further, we deem it appropriate to refer in brief, object and reasons of the Electricity Act, 2003 and the relevant provisions of the said Act, which are necessary for the disposal of this appeal.

5. The Electricity Act, 2003 is central piece of legislation, which is enacted with a object to promote competition in electricity industry, and to protect the interest of the consumers, as also to provide an independent and transparent regulatory mechanism by creating regulatory commission. The aspect of electricity power generation, transmission and distribution was undertaken by the erstwhile Gujarat Electricity Board. After enforcement of provisions under Electricity Act, 2003, activities of generation, transmission, distribution, bulk power purchase and supply undertaken by the erstwhile Gujarat Electricity Board have been assigned to seven separate functional entities. Function of bulk purchase and bulk sale of power is conferred on 1st respondent - Gujarat Urja Vikas Nigam Limited (GUVNL). Under the scheme of the said Act, distribution companies have to procure power from Renewable Energy Sources as per the provisions contained under Section 81(1)(e) of the Electricity Act and also in terms of Gujarat Electricity Regulatory Commission GERC (Procurement of Energy from Renewable Energy Sources) Regulations, 2010 which are amended from time to time.

6. Part VII of the Electricity Act, 2003 deals with tariff regulations, determination of tariff, determination of tariff by bidding process, procedure for tariff order etc. Section 61, 62 and 63 of the said Act reads as under:—

“61. Tariff regulation

The Appropriate Commission shall, subject to the provisions of this Act, specify the terms and conditions for the determination of tariff, and in doing so, shall be guided by the following, namely:—

(a) the principles and methodologies specified by the Central Commission for determination of the tariff applicable to generating companies and transmission licensees;

(b) the generation,

































































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