Partly allowed

M/S Bhalkeshwar Sugars Ltd. v. State of Karnataka and Ors.

Karnataka HC5 Feb 2024RP/200065/2023

Case brief

AI extract

What is this about?

A sugar company sought review of an earlier writ order recording agreed payment terms with GESCOM. The court recalled the order, directing interim payment of export tariff under Section 11 of the Electricity Act at Rs.4.86 per unit, import energy charge arrears in three installments, and referral of rival contentions on tariff, interest and demand charges to KERC.

What did the court decide?

Order dated 27.07.2023 recalled; interim export tariff arrangement, three-installment payment of import arrears, protection from coercive steps, and KERC referral granted.

M/S Bhalkeshwar Sugars Ltd. Vs State of Karnataka… — Writ and Judicial Review | Karnataka HC (2024)

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- 1 - NC: 2024:KHC-K:1293 RP No. 200065 of 2023

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IN THE HIGH COURT OF KARNATAKA,

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KALABURAGI BENCH

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DATED THIS THE 5^TH DAY OF FEBRUARY, 2024

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BEFORE

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THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

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REVIEW PETITION NO. 200065 OF 2023 (-)

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WRIT PETITION NO.202036/2023(GM-KEB)

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BETWEEN:

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M/S. BHALKESHWAR SUGARS LIMITED, A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT BASAVESHWARA CHOWK, NEAR I.B, BHALKI, BIDAR DISTRICT-585 328, (REPRESENTED BY ITS AUTHORIZED SIGNATORY RAJSHEKHAR V. BHARATNOOR) …PETITIONER

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YASHAVANT NARAYANKAR Digitally signed by YASHAVANT NARAYANKAR

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(BY SRI. BHIMASHYA TAKKALAKI, SRI. SHRIDHAR PRABHU, SRI. SIDDAVEER CHAKKI & SRI. SHARADHIRAJ, ADVOCATES)

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AND:

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STATE OF KARNATAKA AND DEPARTMENT OF ENERGY, ROOM NO.236, 2^ND FLOOR, VIKASA SOUDHA, DR. B.R. AMBEDKAR STREET, BENGALURU-560001. (REPRESENTED BY ADDITIONAL CHIEF SECRETARY).

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GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED (GESCOM), A GOVERNMENT COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTRERED OFFICE AT STATION ROAD,

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KALABURAGI-585 102.

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(REPRESENTED BY ITS MANAGING DIRECTOR )

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THE CHIEF ENGINEER (ELE), OPERATION CORPORATE OFFICE, GESCOM, KALABURAGI-585 102.

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THE ASSISTANT EXECUTIVE ENGINEER, GESCOM, SUB-DIVISION, BHALKI, BIDAR-585 328.

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…RESPONDENTS

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(BY SRI. MAYA T. RAJANNA, HCGP FOR R1; SRI. HUSSAIN, SRI. STEPHONIA PINTO K., SRI. SUMANTH GOWDA & SRI. DALMA GUPTA, ADVOCATES FOR R2 TO R4)

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REVIEW PETITION FILED UNDER SECTION 114, ORDER 47, RULE 1 OF CPC, R/W ARTICLE 226 OF CONSTITUTION OF INDIA PRAYING TO REVIEW AND RECALL THE ORDER DATED 27^TH JULY 2023 PASSED BY THIS HONOURABLE COURT, IN WP NO. 202036/2023 (GM-KEB) 2) RESTORE THE WRIT PETITION NO. 202036/2023 ( GM-KEB) ON THE FILE OF THIS HONOURABLE COURT AND CONSIDER THE SAME ON MERIT3) DIRECT THE 2^ND TO 4^TH RESPONDENTS TO REFUND A SUM OF INR ONE CRORE, TWENTYFIVE LAKHS ONLY (INR 1,25,00,000.00/-) PAID BY THE PETITIONER COMPANY, IN COMPLIANCE WITH THE AGREED TERMS AS RECORDED IN THE IMPUGNED ORDER DATED 27^TH JULY 2023 ALONG WITH INTEREST OF 12% PERCENT P.A. FROM THE DATE OF RESPECTIVE PAYMENTS TILL THE ACTUAL REALISATION OF THE SAID AMOUNT 4) GRANT COST OF THIS PETITION 5) PASS ANY SUCH OTHER ORDER OR DIRECTION AS THIS HONOURABLE COURT DEEMS FIT TO GRANT, UNDER THE CIRCUMSTANCES OF THE CASE, IN THE INTEREST OF JUSTICE.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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3 - NC: 2024:KHC-K:1293 RP No. 200065 of 2023

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ORDER

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The petitioner is before this Court seeking for the following reliefs:

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i. Review and recall the Order dated 27^th July 2023 passed by this Hon’ble Court, in WP No. 202036/2023 (GM-KEB)

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ii. Restore the Writ Petition No. 202036/2023 ( GMKEB) on the file of this Hon’ble Court and consider the same on merit;

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iii. Direct the 2^nd to 4^th Respondents to refund a sum of INR One Crore, Twenty-Five Lakhs Only (INR 1,25,00,000.00/-) paid by the Petitioner Company, in compliance with the agreed terms as recorded in the impugned Order dated 27^th July 2023 along with interest of 12% percent p.a. from the date of respective payments till the actual realization of the said amount;

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iv. grant cost of this Petition

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v. Pass any such other order or direction as this Hon’ble court deems fit to grant, under the circumstances of the case, in the interest of justice.

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Both the counsel submit that the orders dated 20.01.2024, which have been passed by a Co-ordinate Bench of this Court in W.P.No.9324/2024 could be passed in the present case since the subject matter in the present review petition is the same as that in W.P.No.9324/2024.

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Insofar as present matter is concerned, the petitioner does not have subsisting power purchase agreement and as

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such, it would be paragraph (iii) onwards of the operative portion of the order which would be applicable to the petitioner. The installments directed by Co-ordinate Bench and the time period would also remain the same. In that view of the matter, I pass the following:

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ORDER

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The review petition is allowed in part and the order dated 27.07.2023 stands recalled on following terms:

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i) It is directed that insofar as petitioner is concerned, there would an interim arrangement whereby the petitioner will pay the ESCOM the prevailing export tariff fixed under Section 11 of Electricity Act, 2003 dated 16.10.2023 in pursuance of which tariff at Rs.4.86/- per unit is being paid against export energy by non PPA holders.

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ii) The arrears of import energy charges shall payable by the petitioners to the

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respondents in three equal installments equated as hereunder; (a) First installment would be paid on or before 29.02.2024; (b) Second installment would be paid on order before 30.04.2024; (c) Third installment would be paid on or before 30.06.2024;

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iii) All rival contentions in the present petition including tariff, interest and payment of demand charges are kept open to be decided by the KERC.

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iv) It is further directed that till KERC passes any orders as directed in this order, the respondents shall not take any precipitative/coercive steps against the petitioners.

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v) It is further directed that in cases where the petitioners have paid up-to-date import energy charges, the respondents shall not withhold and clear all export energy bills payable to the petitioners.

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vi) KERC is directed to pass appropriate orders within a period of six months from the date of receipt of a copy of this order.

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With the above observation, the petition stands disposed of.

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In view of disposal of the petition, pending interlocutory applications, if any, do not survive for consideration and are disposed of accordingly.

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Sd/JUDGE

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YAN, List No.: 19 Sl No.: 1

M/S Bhalkeshwar Sugars Ltd. v. State of Karnataka and Ors.

Case brief

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What did the court decide?

M/S Bhalkeshwar Sugars Ltd. v. State of Karnataka and Ors.

Case brief

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What the court decided

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