JUDGEMENT
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(1.) M/s Jindal Poly Films Limited, Nashik (JPFL) has filed a Petition on 7 February, 2014 against Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for violation of
Section 62(6) of the Electricity Act (EA), 2003 and the Commission's Order dated 3
January, 2013 in Case Nos. 8,18,20,33 of 2012 for non -payment of interest on the
amount retained for a period of 12 months by MSEDCL.
(2.) The prayers of JPFL are as under:
" 1. "PF Incentive including PPD incentive of Rs. 504 lakh retained by MSEDCL for one year period was against MERC's OA regulation 2005. And accordingly Hon. Commission issued order dated 03.01.2013 for case Nos. 8,18,20,33 all of 2012 to refund the PF Incentive and PPD amount from the date of coming in force MSEDCL's impugned Commercial Circular no. 147 and 155. The MSEDCL violated these orders of Hon. Commission by not implementing correctly.
2. Violation of Section 62(6) of Electricity Act 2003 by not paying interest on excess tariff amount for PF Incentive and PPD by MSEDCL for 12 months period. PF Incentive and PPD are the part of tariff order approved by Hon. Commission. As per this section our claim for recovery of interest at bank rate say 12% PA on Rs. 504 Lac retained by for 12 months should be settled immediately.
3. Initiate appropriate action for non -compliance of Commissions Orders dt. 03.01.2013 and violation of Section 62(6) of Electricity Act 2003 per the provisions u/s 142 and 146 of the same Act.
4. As per the above Act, the MSEDCL may be penalized by way of penalty, which shall not exceed Rs. 1.0 Lac for each contravention and in case of a continuing failure with an additional penalty which may extend to Rs. 6000/ - for every day during which the failure continues after contravention of the first such direction.
5. The Hon. Commission may allow us to file additional submission at later date which may require depending upon circumstances during the proceedings of the case.
6. The Hon. Commission may allow any other suitable relief as deemed fit on the nature and circumstances of this petition."
(3.) The Petition states that:
(1) The main issue is regarding interest recovery as per Section 62 (6) of the EA, 2003 on the principal amount of Rs. 5, 04, 11,010 / - to be paid by MSEDCL for retaining it for nearly 12 months. This amount was recovered forcibly due to MSEDCL's incorrect Commercial Circular Nos. 147 and 145.
(2) The amount was recovered through energy bills towards wrong / illegal withdrawal of Power Factor (PF) incentive and prompt payment discount (PPD) for a period of 6 months (September, 2011 to February, 2012).
(3) These Circulars were set aside by the Commission vide Orders dated 03 January, 2013 in Case Nos. 8, 18, 20 and 33 of 2012. Vide these Orders, the Commission directed MSEDCL to apply terms and conditions for Open Access covered in the Circulars based on the Commission's rulings.
(4) The PF incentive and PPD are approved by the Commission in its Tariff Order dated 16 August, 2012 in Case No. 19 of 2012 in respect of MSEDCL. JPFL has also referred to the relevant sections of the Order dated 3 January, 2013 in Case Nos. 8, 18, 20, 33 of 2012.
(5) Due to non -implementation of these Orders, JPFL claims to have suffered heavily as Rs.504 lakh were retained by MSEDCL for 12 months. JPFL has argued that the Commission's Order has to be applied from date of coming into force of the impugned Commercial Circulars no.147 and 155; giving the relevant benefits to the Consumer as PF incentive and PPD are a part of the Tariff Order.
(6) Section 62(6) of EA, 2003 provides as follows for payment of interest: "If any licensee or a generating company recovers a price or charge exceeding the tariff determined under this section, the excess amount shall be recoverable by the person who has paid such price or charge along with interest equivalent to the bank rate without prejudice to any other liability incurred by the licensee."
(7) As per the directives of the Commission in Order dated 03 January, 2013 in Case Nos. 8, 18, 20, 33 of 2012, MSEDCL refunded the principal amount of Rs. 5,04,11,010/ - through adjustment in the bill for the month of January, 2013 without any interest as required by law. ;
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