- (1.) M/s. Global Energy Ltd. (GEL) has filed a Petition on 9 January, 2014 under Sections 15(8) and 86(1)(k) of the Electricity Act (EA), 2003 and Regulations 92 and 93 of the MERC (Conduct of Business) Regulations, 2004 and Regulation 15 of the MERC (Trading Licence Conditions) Regulations, 2004 for rectifying / amending the Commission's Order dated 28 September, 2007 in Case No. 28 of 2006.
(2.) The Petitioner's prayers are as follows: " a) direct / hold that the Petitioner is a trading licensee for a period of 25 years from the date of grant of License No. 1 of 2007 as provided in Section 15(8) of the Electricity Act, 2003 read with Regulation 15 of the MERC (Trading License Condition) Regulations 2004; and b) Pass any such other order, as this Hon'ble Commission may deem fit in the facts and circumstances of the case."
(3.) The Petition states that: 3.1 The Petitioner, GEL, is a Trading Licensee engaged in the business of trading of electricity. On 28 September, 2007, the Commission passed its Order in Case No. 28 of 2006 granting a Licence (Licence No. 1 of 2007) for Intra -State Trading to the Petitioner. 3.2 As per its terms and conditions, the Licence was valid for a period of five years. However, Section 15(8) of EA, 2003 provides that a Licence shall continue to be in force for a period of 25 years unless it is revoked. The term "shall" instead of "may" indicates the mandatory nature of the legislation. Regulation 15 of the MERC (Trading Licence Conditions) Regulations, 2004 also specifies that the Licence shall be for a period as specified in Section 15(8) of EA Act, 2003 i.e. twenty five years. 3.3 Accordingly, the Petition seeks modification in the Commission's Order in Case No. 28 of 2006 with regard to the Licence term. On account of a bonafide oversight, the Petitioner overlooked the stipulation of five -year Licence term and, consequently, did not approach the Commission earlier. The error was realized in September, 2012, i.e. eight days prior to the expiry of the Licence, and a letter was sent to the Commission seeking clarification on the issue of the term of the Licence. The Commission, vide letter dated 21 December, 2012, clarified the position. 3.4 The Petition has been filed pursuant to the Commission's letter. Despite the period of five years having ended, the Petitioner has been regularly paying the applicable Licence fees to the Commission. Regulations 92 and 93 of the MERC (Conduct of Business) Regulations, 2004 empower the Commission to issue any Orders for amending / rectifying any Order so as to meet the ends of justice. These Regulations do not have any restriction with regard to limitation for amending / rectifying any Order. 3.5 GEL meets the technical, capital adequacy and credit -worthiness requirements for the grant of Licence. However, the condition of five year validity has prejudicially impacted the Petitioner. It is not as per law, and will hamper GEL's business. If the Petition is not allowed, GEL will not be able to enjoy the legal right guaranteed by the EA, 2003. The rectification is necessary for aligning the Commission's Order with the statutory framework. 3.6 M/s. Indiabulls has been granted a Trading Licence by the Commission for 25 years. ;