Allowed

M/S Gem Sugars Ltd. v. State of Karnataka

Karnataka HC22 Dec 2021WP/20858/2021

Case brief

AI extract

What is this about?

This writ petition challenged letters issued by electricity supply companies regarding PPA terms. The High Court of Karnataka, relying on a coordinate bench decision, allowed the petition, quashed the impugned letters, and directed respondents to honor the Power Purchase Agreement and tariff.

What did the court decide?

Impugned letters dated 06.03.2021, 25.03.2021, 30.03.2021, and 30.03.2021 were quashed; respondents directed to honor PPA terms and tariff.

M/S Gem Sugars Ltd. Vs State of Karnataka — Company and Corporate | Karnataka HC (2021)

¶1

¹

¶2

IN THE HIGH COURT OF KARNATAKA, BENGALURU

¶3

DATED THIS THE 22^ND DAY OF DECEMBER, 2021

¶4

BEFORE

¶5

THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR

¶6

WRIT PETITION No.20858 OF 2021 (GM-KEB)

¶7

BETWEEN:

¶8

M/S GEM SUGARS LTD A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT HOODI APARTMENT, 120 CUNNINGHAM ROAD BENGALURU - 560 052 (REPRESENTED BY ITS AUTHORIZED SIGNATORY)

¶9

…PETITIONER

¶10

(BY SRI SHRIDHAR PRABHU, ADVOCATE)

¶11

AND:

¶12

STATE OF KARNATAKA DEPARTMENT OF ENERGY VIKASA SOUDHA DR AMBEDKAR VEEDHI BENGALURU - 560 001.

¶13

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED K.R.CIRCLE BENGALURU - 560 001 (REPRESENTED BY THE MANAGING DIRECTOR)

¶14

CHAMUNDESHWARI ELECTRICITY SUPPLY COMPANY LIMITED NO.29, KAVERI GRAMEENA BANK ROAD VIJAYANAGARA 2^ND STAGE, HINKAL MYSURU - 570 017 (REPRESENTED BY THE MANAGING DIRECTOR)

¶15

MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED MESCOM BHAVAN, KAVOOR CROSS ROAD,

¶16

²

¶17

BEJAI, MANGALORE - 570 004 (REPRESENTED BY THE MANAGING DIRECTOR)

¶18

HUBLI ELECTRICITY SUPPLY COMPANY LIMITED P.B. ROAD, NAVANAGAR HUBBALI - 580 025 (REPRESENTED BY THE MANAGIN DIRECTOR)

¶19

GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED STATION ROAD, KALABURGI - 585 101 (REPRESENTED BY THE MANAGING DIRECTOR)

¶20

KARNATAKA ELECTRICITY REGULATORY COMMISSION NO.16, C-1, MILLERS TANK BED AREA VASANTHA NAGAR BENGALURU - 560 052 (REPRESENTED BY THE SECRETARY) …RESPONDENTS

¶21

(BY SRI RAMESH GOWDA A., AGA FOR R1 SMT SUMANA NARAGUND, ADVOCATE FOR R2 TO R6 SRI B.N.PRAKASH, ADVOCATE FOR R7)

¶22

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE LETTER BEARING DATE 6^TH MARCH,2021 ISSUED BY THE 2^ND RESPONDENT, LETTER DATED 25^TH MARCH 2021,ISSUED BY THE 6^TH RESPONDENT, LETTER DATE 30^TH MARCH, 2021 ISSUED BY THE 3^RD RESPONDENT DATED 30.03.2021 ISSUED BY R-4 WHICH ARE PRODUCED HEREIN AS ANNEXURE-A, ANNEXUREB, ANNEXURE-C, ANNEXURE-D RESPECTIVELY AND CONSEQUENTLY AND ETC.

¶23

THIS W.P. COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP , THIS DAY, THE COURT MADE THE FOLLOWING:-

¶24

³

¶25

ORDER

¶26

In this petition, petitioner has sought for the following

¶27

reliefs:-

¶28

"A. Call for records;

¶29

B. Issue a Writ of Certiorari or any other Writ, Order or Direction to quash the letter bearing No.BESCOM/GM(Ele)/DGM (F&C)/PP/BC-39/202021/CYS/738 dated 6^th March, 2021 issued by the 2^nd respondent, letter bearing No.GESCOM/CEE(OP)/EE/PTC/AEE-2/2020-21/CYS401 dated 25^th March, 2021, issued by the 6^th respondent, Letter bearing No.CESC/TL/COM/EBC/A/MTPP/2020-21/CYS1836 dated 30^th March 2021 issued by the 3^rd respondent dated 30.03.2021 is by 4^th respondent which are produced herein as Annexure-A, Annexure-B, Annexure-C, Annexure-D respectively; and consequently,

¶30

C. Issue a Writ of Mandamus or any other writ, order or direction to the Respondents to honour the terms of the PPA for a period of five years from 2^nd January, 2017 and the tariff contained therein the tariff order dated 11^th April, 2017 which is produced at Annexure-F and Annexure-G respectively;

¶31

D. Pass such other and incidental orders including the order as to costs, as are deemed appropriate under the facts and circumstances of the present case".

¶32

⁴

¶33

Heard the learned counsel for petitioner and learned counsel for the respondents and perused the material on record.

¶34

In addition to reiterating the various contentions urged in the petition and referring to the documents produced by the petitioner, learned counsel for the petitioner invites my attention to the decision of the coordinate Bench of this Court in the case of Shree Renuka Sugars Ltd. Vs State of Karnataka and others – W.P.No. 6043/2021 and connected matters Dated 20.07.2021 in order to contend that the issues involved in the present petition is directly and squarely covered by the said decision and consequently, even this petition deserves to be disposed of in terms of the said decision.

¶35

Per contra, learned counsel for the respondents, while fairly admitting that the issues involved in the present petition are identical to the issues involved in Renuka Sugar's case (supra ), submit that the respondents have preferred writ appeals in W.A.No.1156/2021 & connected matters; it is however submitted that there is no interim

¶36

⁵

¶37

orders in the aforesaid writ appeals, which are pending adjudication.

¶38

As rightly contended by the learned counsel for the petitioner and in the light of the aforesaid submissions made at the bar and the facts and circumstances of the case including the fact that there is no interim order in the writ appeals filed against the aforesaid decision of this Court in W.P.No.6043/2021 and connected matters dated 20.07.2021, I am of the considered opinion that even the present petition deserves to be disposed of in terms of the said decision.

¶39

In the result, I pass the following:-

¶40

ORDER

¶41

(i) Petition is hereby allowed in terms of the decision of this Court in Shree Renuka Sugars Ltd. Vs State of Karnataka and others – W.P.No.6043/2021 and connected matters Dated 20.07.2021;

¶42

(ii) The impugned letters at Annexure-A dated 06.03.2021 issued by respondent No.2, Annexure-B dated 25.03.2021 issued by respondent No.6, Annexure-C dated

¶43

⁶

¶44

30.03.2021 issued by respondent No.3 and Annexure-D dated 30.03.2021 issued by respondent No.4 are hereby quashed.

¶45

(iii) Respondents are directed to honour the terms of the PPA for a period of five years from 02.01.2017 and the tariff contained in the Tariff order dated 11.04.2017 produced as Annexures – F and G respectively.

¶46

SD/- JUDGE

¶47

SV/SRL

M/S Gem Sugars Ltd. v. State of Karnataka

Case brief

What is this about?

What did the court decide?

M/S Gem Sugars Ltd. v. State of Karnataka

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bangalore Metropolitan Transport Corporation Vs G Meenakshi

Smt. G. Meenakshi Vs the Divisional Controller

The Executive Engineer Vs Smt. P. T. Mallamma @ P. T. Mallakka

M/S Ranganatha Bar and Restaurant Vs State of Karnataka

M/S Bhavani Steel Corporation Vs the State of Karnataka

Ministry of Communications Employees Co. Operative Housing Society Limited Vs the Principal Commissioner of Income Tax-Central