Karnataka High Court
Coromandel Sugars Limited vs State Of Karnataka on 28 March, 2024
Author: Hemant Chandangoudar
Bench: Hemant Chandangoudar
-1-
NC: 2024:KHC:12827
WP No. 15039 of 2020
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 28TH DAY OF MARCH, 2024
BEFORE
THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR
WRIT PETITION No. 15039 OF 2020 (GM-KEB)
BETWEEN:
1. COROMANDEL SUGARS LIMITED,
A COMPANY REGISTERED UNDER THE PROVISIONS OF
THE COMPANIES ACT 1956,
HAVING ITS REGISTERED OFFICE AT
DHUN BUILDING, No.827, 4TH FLOOR,
ANNA SALAI CHENNAI - 600 002.
(REPRESENTED BY ITS AUTHORISED SIGNATORY)
...PETITIONER
(BY SRI. SHRIDHAR PRABHU., ADVOCATE)
AND:
1. STATE OF KARNATAKA,
DEPARTMENT OF ENERGY,
VIKASA SOUDHA,
DR. AMBEDKAR VEEDHI,
Digitally signed by B BENGALURU - 560 001.
K
MAHENDRAKUMAR (REPRESENTED BY ITS
Location: High ADDITIONAL CHIEF SECRETARY)
Court of Karnataka
2. KARNATAKA ELECTRICITY REGULATORY COMMISSION,
No.16, C-1, MILLER TANK BED AREA,
VASANTH NAGAR,
BENGALURU - 560 052.
(REPRESENTED BY ITS CHAIRMAN)
3. CHAMUNDESHWARI ELECTRICITY SUPPLY
CORPORATION LIMITED,
A COMPANY REGISTERED UNDER THE
PROVISIONS OF COMPANIES ACT 1956,
HAVING ITS REGISTERED OFFICE AT
L. J. AVENUE, NEW SARASWATHIPURAM
-2-
NC: 2024:KHC:12827
WP No. 15039 of 2020
MYSURU - 570 009.
(REPRESENTED BY ITS MANAGING DIRECTOR)
...RESPONDENTS
(BY SRI S.R. KHAMROZ KHAN, AGA FOR R1;
SRI B.N. PRAKASH, ADVOCATE FOR R2;
SRI SHABAAZ HUSSAIN, ADVOCATE FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
COMMUNICATION DATED 7.1.2020 ISSUED BY THE R-2
KARNATAKA ELECTRICITY REGULATORY COMMISSION TO R-3 IS
PRODUCED AT ANNEXURE-A. DIRECT TO R-3 TO PAY FOR THE
ENERGY INJECTED BY THE PETITIONER FOR THE MONTHS OF
DECEMBER 2018 TO MARCH 2019 AT THE TARIFF Rs.3.84 PER
UNIT ALONG WITH APPLICABLE INTEREST FOR THE DELAYED
PAYMENTS AS PER THE DIRECTION OF R-1 VIDE LETTER DATED
20.3.2020 PRODUCED AT ANNEXURE-B ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN
'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner has established a cogeneration-based bagasse power generating plant with a 12 MW installed capacity and 6.4 MV exportable surplus. They entered into a Power Purchase Agreement dated 23.12.1998 with the then Karnataka Electricity Board to supply the contracted capacity of power at the applicable tariff rate for an initial period of ten years. Subsequently, the Power Purchase Agreement (PPA) was extended in favor of the petitioner from time to time for another ten years, valid until 22.12.2018.
2. On 10.10.2016, the petitioner dismantled the existing plant to establish a new plant of 30 MW. They assert that power was supplied -3- NC: 2024:KHC:12827 WP No. 15039 of 2020 from the newly established plant to respondent No.3 until March 2019. However, the PPA executed in favor of the petitioner was not renewed due to objections from the second respondent. The petitioner's grievance is that although power was injected into the grid from 22.12.2018 to March 2019, respondent No.3 has not paid the agreed tariff under the PPA.
3. Despite the expiration of the PPA in December 2018, the petitioner continued to inject power into the grid based on the interim order granted in Writ Petition No.32084/2018. The injection of power into the grid is not disputed by the respondents. Therefore, the petitioner, who injected power into the grid, is entitled to the tariff rate of 3.13 per unit for the power injected from 22.12.2018 to March 2019.
4. Accordingly, I pass the following:
ORDER
i) The Writ Petition stands disposed of, directing the respondent No.3 to pay the tariff for the power injected into the grid from 22.12.2018 till March, 2019 at the rate of 3.13 per unit, within a period of three months from the date of receipt of the certified copy of this order.
Sd/-
JUDGE AP List No.: 1 Sl No.: 14.1