Case: In Re: Arunachal Pradesh Power Corporation Limited Vs. Central Electricity Regulatory Commission
| Judges | Pramod Deo, Chairperson, S. Jayaraman, V.S. Verma, M. Deena Dayalan, Members |
| Issue | Electricity Law |
| Judgement Date | September 10, 2010 |
| Court | Central Electricity Regulatory Commission |
Order:
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The Commission in order dated 15.6.2010 had allowed the Review Petition No. 84/2010 filed by the applicant and reconsidered the Petition No. 203/2009 on merit and came to the conclusion that the applicant prima facie qualified for grant of category-III licence for inter-State trading in electricity in whole of India except the State of Jammu & Kashmir. Accordingly, the Commission directed to issue a notice under Section 15(5)(a) of the Electricity Act, 2003 (the Act) inviting the suggestions/objections to the proposal of the Commission. Accordingly, a public notice was issued on 26.6.2010 in Hindustan Times and Times of India.
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In response to the public notice, one Manav Sewa Sansthan, through its Secretary, Shri O. P. Singh, A-8, Amarnath Monga Block, Tis Hazari Courts, Delhi-110 054 filed its objections to the proposal to grant trading licence to the applicant. A copy of the objection was provided to the applicant who has filed its response on 23.7.2010.
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The Objector, Manav Sewa Sansthan has submitted that in reply to para 23(f) of the application for trading licence, the Applicant has replied that "none of the applicant or any of his Associates or partners, or promoter, or Directors was ever found guilty of contravention of any of the provisions of the Act or the rules or the regulations made there under or an order made by the Appropriate Commission, in any proceedings". The Objector has submitted that the above stated mandatory statement is false and incorrect due to the following reasons:
(a) The Applicant had undertaken trading in electricity without having a valid trading licence by buying power from the Govt. of Arunachal Pradesh and selling the same through the power exchange.
(b) The Applicant has been undertaking trading transaction under the guise of facilitating sale and purchase of power in the Indian Power Exchange.
The Objector has sought directions from the Commission to seek certain documents from the Applicant and the Government of Arunachal Pradesh in order to examine the nature of transactions being carried out by the Applicant.
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The Applicant in its reply dated 23.7.2010 has submitted as under:
(a) The Applicant has fulfilled all requirements under the Act and the Trading Licence Regulations. The issues raised by the Objector have no bearing on the grant of inter-State Trading Licence sought by the Applicant through its application filed on 10.9.2009.
(b) The Applicant is an intra State Trading Licensee and has been granted the licence by the Arunachal Pradesh Electricity Regulatory Commission vide order dated 10.8.2009. Therefore the Applicant has acted duly and in accordance with law in dealing with the electricity from the State of Arunachal Pradesh.
(c) In accordance with the Trading Licence granted by the State Commission, the Applicant is buying electricity from the Government of Arunachal Pradesh and selling electricity within the territory of Arunachal Pradesh. The transactions and trading margins are being regulated by the State Commission. So long as the Applicant acts in accordance with the Regulations of the State Commission in regard to intra State sale, there is no violation of the part of the Applicant in dealing with the electricity purchased from the Government of Arunachal Pradesh. This has been settled by the decision of the Hon'ble Supreme Court in the case of Grid Corporation of Orissa Limited v. Gajendra Haldea (2008) 13 SCC 414.
(d) The Applicant is dealing in electricity through the Power Exchange. The Applicant has been acting as the Professional Member of the Power Exchange in...
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