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2025 Supreme(Online)(CERC) 246
CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, CJ, Shri Ramesh Babu V., J, Shri Harish Dudani, J
Dhariwal Infrastructure Limited – Appellant
Versus
Tamil Nadu Generation & Distribution Corporation Limited – Respondent
Petition No: 382/MP/2023
For the Appellants/Petitioners: Shri Avijeet Lala, Ms. Somya Sahni, Ms. Ritika Singhal, Ms. Anusha Nagarajan, Shri Rahul Ranjan
For the Respondents:
Parties must raise all claims in initial pleadings; failure to do so may preclude relief based on overlapping issues, as seen with typographical errors in contracts not rectified in time.
Headnote:(A) Electricity Act, 2003 - Sections 79(1)(b) and 79(1)(f) - Correction of typographical error in PPA regarding Scheduled Delivery Date - Petitioner sought correction of commencement date from 1.10.2013 to 1.6.2014 for clarity and alignment with terms of PPA. The Commission ruled that the request is essentially a claim that overlaps with an earlier petition and is thus maintainable, leading to dismissal. (Paras 14-27)
(B) Typographical error in contractual agreements - When an inadvertent typographical error occurs that affects the understanding of contractual terms, it necessitates corrective action based on mutual agreement and intent. However, relief must be sought within limitation periods defined under statutory provisions. (Paras 22-24)
(C) The principles of Order II Rule 2 of the Civil Procedure Code - A party must include all claims and relief in their initial pleadings, and failure to do so can bar subsequent petitions on similar causes of action. (Paras 13-19)
| Table of Content |
|---|
| 1. factual background of the petition filed. (Para 1 , 2) |
| 2. petitioner arguments and reliefs requested. (Para 6 , 7) |
| 3. court's analysis regarding maintainability. (Para 13 , 14 , 21) |
| 4. key decisions and rationale leading to conclusion. (Para 25 , 26) |
ORDER
The Petitioner, Dhariwal Infrastructure Limited (in short ‘DIL’), has filed the present Petition under Section 79 (1)(b) and (f) of the Electricity Act, 2003 , read with Regulation 111 and 113 of the CERC (Conduct of Business) Regulations, 1999, or seeking the following reliefs:
a) Hold and declare that the date mentioned in Schedule 8 of PPA i.e., 01.10.2013 as the commencement of the first Contract Year for the supply of 100 MW RTC power from the generating station under the PPA, is an inadvertent typographical error.
b) Declare and allow the date i.e., 01.06.2014 mentioned as the Scheduled Delivery Date in Article 4 of the PPA to be the commencement of the first Contract Year under Schedule 8.
c) Allow the rectification of all the dates following the date of 01.10.2013 as mentioned under Schedule 8 of the PPA, as per the scheme provided under the definition of Contract Year of the PPA.
d) Declare and allow, as a consequence of the above prayers, the rectification of the Expiry Date in the PPA, to bring it in alignment with the RfP, LoI and the PPA which clearly stipulates the operating period to be for 15 years.
e) Declare that the tariff mentioned for the respective years under Schedule 8 of the PPA would be shifted by one year and hence, direct the Respondent that the tariff mentioned for the first Contract Year, to be paid for a period of 01.06.2014 to 31.03.2015 and allow the same principle to be applied for the subsequent years. Further, direct the parties for consequent reconciliation of the amount and payment of outstanding dues to the Petitioner along with interest.
f) Pass such other order(s) and grant relief(s) that the Commission deems fit in the interest of justice and equity.
Background facts
2. The Petitioner DIL has established a 2 x 300 MW coal-based thermal generating station (in short, “the generating station”) at Tadali, Chandrapur in the State of Maharashtra. TANGEDCO on 21.12.2012 issued Request for Proposal (RfP) for long- term procurement of power under case-1 competitive bidding process for meeting its base load requirements in the State of Tamil Nadu for a period of 15 years, from the Scheduled Delivery Date (SDD). The RfP dated 21.12.2012 mentioned the SDD as 1.10.2013. The RfP was subsequently revised and issued on 21.1.2013, with the last date of submission of bid as 6.3.2013. Pursuant to the competitive bidding process, DIL was selected as the successful bidder, and TANGEDCO issued an LOI dated 14.11.2013 to DIL for the supply of power from its generating station for a period of 15 years from 1.6.2014 to 30.9.2028, which was unconditionally accepted by DIL on 18.11.2013. Subsequently, DIL entered into a PPA with TANGEDCO on 27.11.2013 for the supply of power from its generating station, for a period of 15 years. Both these parties signed an addendum to the PPA on 20.12.2013. As per Article 4.1 of the PPA, the SDD was mentioned as 1.6.2014, in line with the LOI issued on 14.11.2013. The SDD under the PPA was 1.6.2014, and the expiry date was 30.9.2028.
3. Based on the application of DIL, PGCIL vide its letter dated 22.7.2015 granted LTA for the supply of 100 MW power from the generating station to Tamil Nadu from 1.4.2015 onwards. DIL also entered into an LTA with PGCIL on 20.8.2015 after a delay of almost 1.5 years from the date of application. However, PGCIL, vide its letter dated 15.12.2015, intimated DIL regarding the operationalization of the LTA granted and the commissioning of the Narendra-Kolhapur 765 D/C line, enhanced Available Transmission Capacity being utilized for the operationalization of LTA, granted notionally to December 2013 applicants. DIL vide letters dated 10.2.2014 and 19.5.2014 informed TANGEDCO regarding the delay
