HIGH COURT OF JUDICATURE FOR RAJASTHAN

BENCH AT JAIPUR

S.B. Civil Writs No. 7625/2018

M/s Western Drugs Limited, F-271 (A) Road No. 12, Mewar

Industrial Area, Madri, Udaipur-313003, Rajasthan Through Its

Authorized Representative, Mr. B.l. Dagliya

----Petitioner

Versus

1.

Rajasthan Electricity Regulatory Commission Through Its

Chairman, Sahakar Marg, Jaipur

2.

The State Of Rajasthan, Through Its Energy Secretary,

Government Of Rajasthan, Secretariat, Jaipur

3.

Rajasthan Urja Vikas Nigam Limited Through Its

Managing Director, Vidyut Bhawan, Janpath, Jyoti Nagar,

Jaipur 302005

4.

Jodhpur Vidyut Vitran Nigam Limited (Jodhpur Discom)

Through Its Managing Director, Having Its Registered

Office Located At New Power House, Heavy Industrial

Area, Jodhpur

5.

Jaipur Vidyut Vitran Nigam Limited (Jaipur Discom)

Through Its Managing Director, Having Its Registered

Office Located At Vidyutt Bhawan, Jyoti Nagar, Jaipur

----Respondents

For Petitioner(s)

:

Mr. Aklesh Jain.

For Respondent(s)

:

Mr. Virendra Lodha, Senior Counsel

with Mr. Jai Lodha.

HON'BLE MR. JUSTICE INDERJEET SINGH

Order

19/04/2018

1.

Counsel for the petitioner submitted that issue involved in

this writ petition is covered by the judgment passed by a

Coordinate Bench of this Court in the matter of Vivek

Pharmachem (India) Ltd. Versus Rajasthan Electricity

Regulatory Commission & Ors. in S.B. Civil Writ Petition

(2 of 3)

[CW-7625/2018]

No.2393/2018 decided on 09.02.2018 wherein it has been

held as under:-

“Although, Mr. Virendra Lodha, Senior

Counsel appearing with Mr.Jai Lodha for

respondent—Rajasthan Urja Vikas Nigam Limited

(RUVNL) submitted that respondent—RUVNL is

facing grave financial stress, the fact of the

matter remains that the issue in this petition is

not about RVVNL’s financial stress but is instead

about the right of the petitioner to be paid LPS in

terms of its Power Purchase Agreement (PPA)

with RUVNL and its right to the rule of law on

contracts being enforced not scuttled by the

State instrumentality.

The petitioner’s case is that the LPS

admittedly due and payable to it and in fact

admitted by RUVNL is being held back for

reasons of it not acceding to the arm-twisting of

RUVNL to waive 50% of the LPS and file an

affidavit in regard thereto. He submitted that

50% of the LPS due to other similar suppliers

under their PPA’s has been made over on their

furnishing requisite affidavits/undertakings to

RUVNL. It has been submitted that financial

difficulty being bandied about as a defence is not

even remotely a sustainable defence. Liabilities

under contracts cannot be circumvented for

reasons of financial difficulty and if that

proposition were to be upheld it would result in

complete chaos in business and trade and break

down of the rule of law. It has been submitted

that the issue in this petition has also been

addressed by this court in SBCWP No.1733/2018

titled Tarini Minerals (P) Ltd. Vs. Rajasthan

Electricity Regulatory Commission & Others and

other connected matters in its order dated

05.02.2018 where appropriate directions have

been issued to RUVNL. It has been prayed that

similar directions be issued in this petition.

Mr. Virendra Lodha cannot and does not

deny that Tarini Minerals (P) Ltd. Vs. Rajasthan

Electricity Regulatory Commission & Others

(supra) was disposed of directing payment of

50% of LPS due and outstanding within one

month and the remainder as duly computed 12

months thereafter.

Resultantly, these petitions are accordingly

disposed of and as in Tarini Minerals (P) Ltd. Vs.

Rajasthan Electricity Regulatory Commission &

Others (supra), it is directed that respondent

RUVNL pay 50% of the LPS due to the petitioner-

companies within one month from today and the

(3 of 3)

[CW-7625/2018]

remainder 50% LP