SAGAR SUGARS AND ALLIED PRODUCTS LTD Vs. TRANSMISSION CORPORATION OF A P LTD
LAWS(SC)-2011-10-22
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on October 13,2011

SAGAR SUGARS AND ALLIED PRODUCTS LTD Appellant
VERSUS
TRANSMISSION CORPORATION OF A.P. LTD Respondents

JUDGEMENT

A.K. Patnaik, J. - (1.) These are the appeals against the common order dated 30.07.2004 passed by the Division Bench of the Andhra Pradesh High Court in Writ Appeal No. 191 of 2004 and C.M.A No. 3613 of 2003.
(2.) The facts relevant for deciding these appeals very briefly are that on 29.04.2000 the Appellant entered into a Memorandum of Understanding with Non-Conventional Energy Development Corporation of Andhra Pradesh Limited (for short the NEDCAP), a nodal agency for non-conventional projects up to 20 MW, for setting up of a power plant in which power was to be generated from bagasse, a by-product of sugar factory. On 25.01.2002, the Andhra Pradesh Electricity Regulatory Commission (for short the APERC) set up under the Andhra Pradesh Electricity Reforms Act, 1998, permitted the Appellant-company to supply the power generated in its plant to the Respondent No. 1, which had taken over the functions of the erstwhile Andhra Pradesh Electricity Board. On 10.07.2002, a Power Purchase Agreement (for short the PPA) was entered into between the Appellant and the Respondent No. 1 which inter alia provided that the power to the extent of 9.99 MW will be supplied during the season and power to the extent of 16.94 MW will be supplied during the off season. On 11.01.2003, Respondent No. 1 permitted the Appellant to synchronize its plant with the power grid and on 13.01.2003, the Appellant started supplying electricity energy to the power grid. On 01.03.2003, the Appellant wrote to the APERC to direct the Respondent No. 1 to purchase unutilized power of the Appellant as sugar plant of the Appellant could not be commissioned due to some difficulties and power generated in its power plant remained unutilized and on 17.03.2003, APERC directed the Respondent No. 1 to amend the PPA to provide for surplus/ additional quantity of power from the Appellant. On 17.03.2003, the Chief Engineer of Respondent No. 1 wrote to Superintending Engineer directing him to stop evacuation of power from the power plant of the Appellant and to cut off the supply on the ground that the plant of the Appellant cannot be classified as co-generation till the sugar plant of the Appellant was commissioned.
(3.) The Appellant then filed Writ Petition No. 7395 of 2003 in the Andhra Pradesh High Court challenging the letter dated 17.03.2003 of the Chief Engineer of the Respondent No. 1 and the learned Single Judge passed the orders on 02.05.2003 directing issue of notice to the Respondents and directing the Respondents, as an interim measure, to purchase power from the Appellant and to pay to the Appellant Rs. 2.00 per unit. The Respondent No. 1 then filed a review petition before the APERC for reconsideration of its earlier directions to amend the PPA issued on 17.03.2003 and on 01.10.2003 the APERC allowed the review petition and cancelled its directions issued on 17.03.2003. The Appellant then challenged the order dated 01.10.2003 of the APERC before the Division Bench of the High Court in C.M.A. No. 3613 of 2003 and the Division Bench of the High Court granted interim stay of the order dated 01.10.2003 of the APERC.;


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