Decided on September 22,2016

The Electricity Department Appellant
M/S Suryachakra Power Corporation Limited. Respondents


NARIMAN,J. - (1.) We have heard Shri Rakesh Khanna, learned senior counsel appearing for the appellants for quite some time, and Shri. Gurukrishna Kumar, learned senior counsel appearing for the respondent in reply. Though Shri Rakesh Khanna has taken us through the PPA, various documents, and various orders in great detail, we do not find it necessary to go into any of these for the reason that we find that the appellants had set up various expert committees to go into the bone of contention in this appeal, namely, project cost and completed cost.
(2.) We find that M/s. K.P.C.L (M/s. Karnataka Power Corporation Ltd.) had been appointed by them in order to determine the project cost which was determined at L 73.40 crores. M/s. Tamil Nadu Electricity Generation and Distribution Corporation Ltd. (TANGEDCO), another expert, arrived at a finding of L 82.11 crores, which was reconfirmed by a subsequent report, and ultimately arrived at a figure of L 79.439 crores with other issues which were to be decided separately. A joint exercise between the appellants and respondent, also carried out in April, 2010, where a figure of L 76.14 crores was arrived at, and the balance of L 8.82 crores in respect of IDC, that is, interest during construction and preliminary expenses was left to be examined by the Central Electricity Authority. The Central Electricity Authority also came out with three separate reports in which it arrived at certain figures of project cost. Finally, the administration appointed a five member committee after all these reports, and in 2013, this five member committee ultimately arrived at L 70.61 crores as the final project cost. This was as follows : JUDGEMENT_106_LAWS(SC)9_2016.jpg
(3.) Subsequently, it has been stated that the said report of the five member committee has been accepted by the Administration. The Respondent had prayed that the Hon'ble Commission determine the project cost and tariff thereon in accordance with the provisions of PPA/Techno Economic Clearance issued by A&N Administration and the report of the five members committee constituted by the A & N Administration for the purpose of determination of the cost of the project as L 70.61 crores.;

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