IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE VIVEK AGARWAL MISC. APPEAL No. 1419 of 2002 BETWEEN:-

ULTRATECH CEMENT LTD. HAVING A UNIT CALLED VIKRAM CEMENT AT VIKRAM NAGAR, P.O. KHOR, DISTRICT NEEMUCH (MADHYA PRADESH)

.....APPELLANT (BY SHRI RAVINDRA SHRIVASTAVA - SENIOR ADVOCATE ASSISTED WITH SHRI ABHISHEK MUNOT, SHRI AKSHAY SAPRE, SHRI MALCOM DESAI, SHRI ROHAN HARNE- ADVOCATE)

AND MADHYA PRADESH STATE ELECTRICITY BOARD (NOW CALLED MADHYA PRADESH STATE ELECTRICITY BOARD), SHAKTI BHAWAN, RAMPUR, JABALPUR (MADHYA PRADESH)

.....RESPONDENTS (BY SHRI M.L. JAISWAL - SENIOR ADVOCATE ASSISTED WITH SHRI K.K. GAUTAM - ADVOCATE)

MISC. APPEAL No. 216 of 2003 BETWEEN:-

M.P. STATE ELECTRICITY BOARD THROUGH ITS SECRETARY, RAMPUR, JABALPUR (MADHYA PRADESH)

.....APPELLANT (BY SHRI M.L. JAISWAL - SENIOR ADVOCATE ASSISTED WITH SHRI K.K. GAUTAM - ADVOCATE)

AND

1. M/S VIKRAM CEMENT (A UNIT OF GRASIM Signature Not Verified INDUSTRIES LIMITED.) VIKRAM NAGAR, SAN KHORE, NEEMUCH (MADHYA PRADESH)

2. THE SECRETARY M.P. ELECTRICITY REGULATORY COMMISSION, BHOPAL, M.P.

(MADHYA PRADESH)

.....RESPONDENTS (BY SHRI RAVINDRA SHRIVASTAVA - SENIOR ADVOCATE ASSISTED WITH SHRI ABHISHEK MUNOT, SHRI AKSHAY SAPRE, SHRI MALCOM DESAI, SHRI ROHAN HARNE - ADVOCATE)

MISC. APPEAL No. 300 of 2003 BETWEEN:-

ULTRATECH CEMENT LTD. HAVING A UNIT CALLED VIKRAM CEMENT AT VIKRAM NAGAR, P.O. KHOR, DISTRICT NEEMUCH (MADHYA PRADESH)

.....APPELLANT (BY SHRI RAVINDRA SHRIVASTAVA - SENIOR ADVOCATE ASSISTED WITH SHRI ABHISHEK MUNOT, SHRI AKSHAY SAPRE, SHRI MALCOM DESAI, SHRI ROHAN HARNE- ADVOCATE)

AND

1. M.P. STATE ELECTRICITY BOARD (NOW CALLED MADHYA PRADESH STATE ELECTRICITY BOARD), SHAKTI BHAWAN, RAMPUR, JABALPUR (MADHYA PRADESH)

2. THE STATE OF MADHYA PRADESH, THROUGH THE PRINCIPAL SECRETARY, GOVERNMENT OF MADHYA PRADESH, DEPARTMENT OF ENERGY, VALLABH BHAWAN, BHOPAL (M.P.).

.....RESPONDENTS (BY SHRI M.L. JAISWAL - SENIOR ADVOCATE ASSISTED WITH SHRI K.K. GAUTAM - ADVOCATE)

__________________________________________________________

Reserved on : 21.11.2022 Pronounced on : 21.12.2022 These appeals having been heard and reserved for orders, coming on for pronouncement this day, the Court pronounced the following :

Signature Not Verified SAN ORDER Digitally signed by ASHWANI PRAJAPATI These Miscellaneous Appeals are filed respectively by the Industry and the Electricity Board, being aggrieved of order dated 23.11.2002, passed by the M.P. State Electricity Regulatory Commission (hereinafter referred to as the 'Commission' for short), in Application No.188/2002, wherein, it is provided that renewal permission for D.G. sets No.7, 8 & 9, will be limited to five years and the appellant shall use Board's power at least to the extent of generation from these D.G. sets. It is further prayed that new Captive Power Policy Annxure-P/16, dated 20.01.2001, be declared to be illegal, ultra vires and unconstitutional and consequently demand letter dated 24.02.2022 issued by the Electricity Board and subsequent demands be quashed.

2. On the other hand, Electricity Board has filed their appeals being aggrieved of the order of the Commission, in Petition No.188/2002, whereby, vide order dated 23.11.2002 Commission has reviewed its earlier order dated 14.05.2002 and has provided that those HSD Based Generating sets, six in number i.e. 4.4x15 MW (HSD Based sets) and 1x6.0 MW (HFO Based) sets, having permission without time limit may be replaced by a 23 MW TG sets which will be used continuously in isolation of Board supply.

3. Contention of the Electricity Board is that there is a statutory obligation under the policy of the State Government dated 20.02.2001 published in the M.P. Gazette (Extraordinary), which provides in para 3 as under :-

"Use of Captive Power Plant - shall have to be used only as following :-

(i) For such consumers, to whom permission is granted after issue and this notification, it shall be binding to draw at least 50% of electricity from M.P.

Electricity Board out of their total mon