07 September 2016
Supreme Court
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WARDHA POWER CO LTD Vs MAHARASHTRA ST.ELECT.DISTRN.CO.LTD.&ANR.

Bench: KURIAN JOSEPH,ROHINTON FALI NARIMAN
Case number: C.A. No.-005919-005919 / 2013
Diary number: 19225 / 2013
Advocates: RICHA KAPOOR Vs


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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.5919 OF 2013

WARDHA POWER CO. LTD. ... APPELLANT(S) VERSUS

MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD. AND ANR. ... RESPONDENT(S)

J U D G M E N T

KURIAN, J.

1. The appellant is aggrieved by the concurrent findings recorded  by  the  Maharashtra  Electricity  Regulatory Commission (in short ’the Commission’) and the Appellate Tribunal for Electricity (in short ‘the Tribunal’).

2. The  appellant  had  entered  into  an  agreement  to generate and supply power to Respondent No.1.  Since the appellant could not keep up the time schedule, it made an adhoc arrangement for purchase of power from other sources.

3. Whether such adhoc supply should be at the actual cost incurred by the appellant or at the agreed rate for the generated power is the short question.

4. Interpreting  the  terms  of  the  agreement  and  the communications in-between, the Commission as well as the

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Tribunal, after elaborately discussing the entire evidence, have rendered a concurrent finding against the appellant. The  specific  understanding  between  the  parties  was  that being a bidder, who has agreed to supply power from the source  of  generation,  can  claim  the  Power  Purchase Agreement (in short ‘PPP’) rates only for the generated power. For the delayed generation, to avoid the penalty, appellant  was  permitted  to  make  adhoc  arrangements  by purchase of power from other sources.  In case the rates for purchased power is less than the PPA agreement rates, appellant can claim only that.  For the delayed supply from the generating sources, while purchasing power from other sources,  appellant  cannot  trade  and  make  any  unjust enrichment.   Moreover,  the  communication  with  the respondent  would  also  indicate  that  it  was  the understanding between the parties.

5. Under Section 125 of the Electricity Act, 2003, an appeal to this Court lies only when there is a substantial question  of  law,  as  required  for  a  second  appeal  under Section 100 of Code of Civil Procedure, 1908.  Though the appellant  has  raised  34  questions,  they  are  actually grounds  for  attacking  the  appellate  order.  Grounds  for attacking an order are different from substantial question of  law  evolved  in  the  appeal.  On  appreciation  of  the correspondence between the parties during the subsistence

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of the agreement, both the Commission and the Appellate Tribunal have held against the appellant.

6. We, thus, do not find any substantial question of law so as to exercise our jurisdiction under Section 125 of the Electricity Act, 2003.

7. The appeal is, accordingly, dismissed.

8. No order as to costs.

......................J. (KURIAN JOSEPH)

......................J. (ROHINTON FALI NARIMAN)

New Delhi, September 7, 2016.

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ITEM NO.2               COURT NO.10               SECTION XVII                S U P R E M E  C O U R T  O F  I N D I A                        RECORD OF PROCEEDINGS Civil Appeal  No(s).  5919/2013 WARDHA POWER CO LTD                                Appellant(s)                                 VERSUS MAHARASHTRA ST.ELECT.DISTRN.CO.LTD.&ANR.           Respondent(s) (With appl.(s) for directions and permission to file additional  documents and permission to place additional documents on record) (For final disposal)  Date : 07/09/2016 This appeal was called on for hearing today. CORAM :           HON'BLE MR. JUSTICE KURIAN JOSEPH          HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN For Appellant(s)

Mr. Jayant Bhushan, Sr.Adv.  Ms. Sangeeta Bharti, Adv.  Mr. Krishanu Adhikary, Adv.

                     Ms. Richa Kapoor,Adv.                       For Respondent(s)

Mrs. Deepa Chawan, Adv.  Mr. Nirav Shah, Adv.  Ms. Ramni Taneja, Adv.

                      Mr. Anil Shrivastav,Adv.                                 UPON hearing the counsel the Court made the following                              O R D E R

This appeal is dismissed in terms of the signed judgment.

Pending applications, if any, stand disposed of.

  [RENU DIWAN]          [SUKHBIR PAUL KAUR]       ASSISTANT REGISTRAR    A.R.-CUM-P.S.          (Signed reportable judgment is placed on the file)

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