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2008 Supreme(Guj) 524

IN THE HIGH COURT OF GUJARAT
C.K. BUCH, J.
Hindalco Industries Ltd - Petitioner
Versus
Gujarat Energy Transmission Corporation Limited & Ors. - Respondents
Special Civil Application No. 14742 of 2004 With Special Civil Application No. 23308 of 2006 With Special Civil Application No.14743 of 2004 With Special Civil Application No. 23310 of 2006 With Special Civil Application No. 23312 of 2006 With Special Civil Application No. 26358 of 2006 With Special Civil Application No. 26376 of 2006 With Special Civil Application No. 3429 of 2007 With Special Civil Application No. 4316 of 2007 With Special Civil Application No. 4606 of 2007 With Special Civil Application No. 4608 of 2007 With Civil Application No. 11222 of 2006 With Civil Application No. 11220 of 2006
Decided On : 21-10-2008

Advocates Appeared:
For the Petitioner:Mihir Joshi, Sr. Advocate With Bijal Chhatrapati and Sujal Shah, For Singhi & Co.
For the Respondents:Ramachandran, Sr. Advocate With Premal R. Joshi, Advocates.

Headnote:

Electricity Act, 2003 - Section 86 - Gujarat Electricity Industry (Reorganization & Regulation) Act, 2003 - Section 17 - Electricity Regulatory Commission Act, 1998 - Section 29 - Gujarat Electricity Commission (Terms & Conditions of Tariff) Regulations, 2005 - Regulation 62 - Questioned raised by the court are Whether the Commission was justified in holding the petition of GEB for determination of POC to be legally maintainable despite holding that GEB had not established whether any Grid Support had at all been made available for Parallel Operation or that any costs had been incurred by GEB for the purpose - Whether the Commission had jurisdiction under the law to issue a declaration that POC were leviable by GEB for determination of such charges in the absence of data evidencing service rendered or costs incurred by GEB for Parallel Operation - Whether the Commission was justified in granting liberty to GEB to file a fresh petition on POC in the facts and circumstances of the case - Whether non - filing of appeal against the observations made in the order under challenge would not affect adversely the merits of the say of the present petitioners and whether accepting the application substantively preferred by GEB has resulted into denial of justice? - Whether Regulation - 62 framed in the year 2005 is either ultra vires or inconsistent to the relevant statutory provisions? - Held, Undisputedly words; "grid support" in Regulation - 62 have been introduced for the first time after the pronouncement of the order under challenge in the year 2005. Introduction of such words or phraseology of Regulation framed in the year 2005, whether is proper execution of power by Electricity Regulatory Commission is obviously a question - Recording of answer to this question in the present petition may result into serious prejudice to either party - Petitioner had contended that on account of possibility of abuse of power conferred on the Police, the said power be declared as violative of Articles 14, 19 and 21 of the Constitution - After deliberations and making certain observations, the Apex Court decieded to leave the question of vires open for final investigation, if necessary, in other cases pending before Court, meaning thereby, on account of some litigation, the Apex Court did not decide on the point of vires assailed in reference to the power exercised - It is hereby ordered that the petitioners shall continue to pay charges @ 7.5% that are being paid as per the Commercial Circular, but such payment that may be made by the petitioners shall be treated as payment made without prejudice to the rights and contentions of the petitioners that they have raised before this Court - Court is tempted to observe that in ultimate interest and development of State and growing industrial zones, scope of installations of other CPPs being need of time, some mediation or conciliation proceedings, if possible, can be initiated by GERC if it thinks fit and try to resolve the issue amicably, keeping the battle of the Court under suspension, because, State Transmission Utilities and private generating activity, both need substantive development - No formal orders are required to be passed on both the Civil Applications seeking stay of the impugned order passed by the GERC - Petition Partly Allowed

JUDGMENT :

C.K. Buch, J.

These writ petitions are preferred by Public Limited Companies, invoking jurisdiction of this Court under Articles 226 and 227 of the Constitution of India, whereby the petitioners have prayed for issuance of appropriate writ, order or directions, more particularly, writ of mandamus quashing and setting the order dated 25th June, 2004 passed by the Gujarat Electricity Regulatory Commission [Ahmedabad] [hereafter referred to as "the Commission"] in Case No. 256 of 2003. It is further prayed that this Court should declare Regulation-62 of Gujarat Electricity Regulatory Commission [Terms and Conditions of Tariff] Regulations, 2005 [hereafter to be referred to as "Regulations of 2005"], to the extent that "in addition the Commission may also determine the charges on account of service rendered by the Utility to the consumers, e.g. Grid Support Charges" as ultra vires the Act, null and void.

2. One ancillary relief has been prayed in all the petitions and it is submitted that pending the hearing and disposal of the petitions, operation, execution and implementation of the order under challenge dated 25th June, 2004 passed by the Commission may be stayed. Here, it will be relevant to note that Gujarat Electricity Board [hereafter referred to as "the GEB"] was the petitioner before the Commission and while dealing with the said petition, the impugned order is passed. Pending this group petitions, proceedings have been invoked to get quantum of Parallel Operation Charge [hereafter referred to as "POC"] so that Commission can determine POC as charge under the head of "Grid Support Charge". The Commission, of course, has adjourned the hearing and process of determination of the points submitted by the State Transmission Licensee [hereafter referred to as "Utility" or "Licensee"], more particularly on account of pendency of the present petitions and the nature of reliefs prayed for by the petitioner Companies. The first petition being Special Civil Application No.14742 or 2004 came to be filed by Hindalco Industries Limited against the GEB, a company incorporated under the Companies Act, 1956. Other petitioners also have the same status, i.e. a company incorporated under the Companies Act, 1956. It is contended by the petitioners that the order under challenge passed by the Commission is contrary to law and the same is also not valid being an order passed devoid of authority/jurisdiction. The order is challenged on various grounds, but on plain reading of the petitions preferred, it is possible to note that the petitioners have raised mainly certain questions of law and have challenged the proprietary of the order also on merit. However, counsel for the petitioners have not addressed the Court on merit the factual matrix, more particularly in the background of one significant situation, i.e. pendency of the subsequent proceedings initiated by the Licensee/Utility before the Commission. But while responding to the submissions made by the contesting respondents [Transmission Utility] and the counsel appearing for the Commission, the petitioners have tried to explain the factual contingency and have submitted that on facts also, the petitioners can ably dislodge entitlement of the GEB to recover any such charge or charges like POC from the petitioners. In nutshell, the questions emerging from the grounds of challenge are as under:-

    (i) Whether the Commission was justified in holding the petition of GEB for determination of POC to be legally maintainable despite holding that GEB had not established whether any Grid Support had at all been made available for Parallel Operation or that any costs had been incurred by GEB for the purpose.

(ii) Whether the Commission had jurisdiction under the law to issue a declaration that POC were leviable by GEB for determination of such charges in the absence of data evidencing service rendered or costs incurred by GEB for Parallel Operation.

(iii) Whether the Commission was justified in g

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