Madhya Pradesh High Court
M/S Kamal Sponge Steel And Power Ltd. vs M.P. Poorv Kshetra Vidyut Vitaran ... on 18 January, 2022
Author: Vishal Dhagat
Bench: Vishal Dhagat
1
The High Court Of Madhya Pradesh
WP No. 17553 of 2016
(M/S KAMAL SPONGE STEEL AND POWER LTD. Vs M.P. POORV KSHETRA VIDYUT VITARAN CO.LTD.
AND OTHERS)
Jabalpur, Dated : 18-01-2022
Heard through Video Conferencing.
Shri Siddharth Singh, learned counsel for petitioner.
Shri R.S. Jaiswal, learned Senior Counsel with Shri K.K. Gautam,
learned counsel for respondent Nos.2 to 4.
Shri H.K. Golhani, learned counsel for respondent No.5.
Petitioner has filed this petition calling in question demand notice dated 07.10.2016 for payment of bills of Rs.87,36,511/-(Rupees Eighty Seven Lakh Thirty Six Thousands Five Hundred and Eleven only) made on basis of circular issued by Madhya Pradesh Electricity Regulatory Commission. By impugned notice dated 07.10.2016, Chief Engineer (Plg & Design), Madhya Pradesh Power Transmission Company Limited, Jabalpur has issued a letter of demand to petitioner company in accordance with order dated 31.12.2012 and demand was made for payment of Rs.87,36,511/- for parallel operation charges of 12MW Captive Power Plant.
It is submitted by counsel appearing for petitioner that Captive Power Plant was closed and was not in use after June, 2010. Permission was granted to run Captive Power Plant on 24.04.2008 on payment of one time connectivity charge of Rs.1,00,000/-. Captive Power Plant was non-functional after June, 2010, due to shortage of water and power plant went off the Grid automatically. Joint inspection was conducted in which, it was found that Captive Power Plant is not running. It was submitted that as per directives of Madhya Pradesh Electricity Regulatory Commission, parallel operation charges are to be paid if plant is connected to the Grid. In view of same, petitioner is not entitled to pay bills for parallel operation charges of Captive Power Plant and bill dated 25.03.2013 is incorrect and same may be set aside.
Respondents had opposed the writ petition on the ground that Signature Not SAN Verified petitioner has an alternate remedy to file an appeal under Section 111 of Digitally signed by SUNIL KUMAR PATEL Date: 2022.01.27 16:39:02 IST 2 Electricity Act, 2003. Respondents placed the reliance on the judgement dated 12.08.2016 passed by Division Bench of this Court in Writ Appeal No.356 of 2016 (M/s National Steel & Agro Industries Limited Vs. M.P. Electricity Regulatory Commission and others). On merits, it is submitted that averments of petitioner regarding non-working of Captive Power Plant is wrong. Till permission of parallel operation is withdrawn and physical connection is removed, till such time, the permission of parallel operation continues. Hence, petitioner company is liable to pay the charges as specified in Madhya Pradesh Electricity Regulatory Commission, Bhopal vide order dated 31.12.2012. Condition 5 (a) does not apply on petitioner company because plant was connected with Grid till 15.10.2014 as permission of parallel operation stands withdrawn w.e.f. 28.11.2014.
Be it may, Division Bench of this Court has held that alternate remedy is available to a company to go before Tribunal under Section 111 of Electricity Act, 2003. Madhya Pradesh Electricity Regulatory Commission is an expert body and matter at hand is technical in nature and, therefore, Tribunal was constituted to consider complex technical issues. Petitioner is having alternate remedy to approach the Tribunal for quashing demand of bill for parallel operation charges.
In view of judgement passed by Division Bench of this Court in case o f M/s National Steel & Agro Industries Limited (supra), writ petition filed by petitioner is disposed of with liberty to petitioner to approach before Tribunal under Section 111 of Electricity Act, 2003. Stay granted in favour of petitioner stands vacated.
Writ petition is dismissed with the aforesaid liberty.
(VISHAL DHAGAT) JUDGE sp/-
Signature SAN Not Verified Digitally signed by SUNIL KUMAR PATEL Date: 2022.01.27 16:39:02 IST