SURYACHAKRA POWER CORPORATION LTD Vs. STATE
CENTRAL ELECTRICITY REGULATORY COMMISSION
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(1.) THE applicant, a company registered under the Companies Act, 1956 has made the present application under Sub-section (1) of Section 15 of the Electricity Act, 2003 (the Act) for grant of licence for inter-state trading in electricity in whole of India, except the State of Jammu & Kashmir for category `A`.
(2.) As per the Regulation 6, the net worth of the applicant at the time of application should not be less than Rs. 1.5 crore in case of the applicant who proposed to trade up to 100 MUs of electricity in a year. Based on the details furnished by the applicant, it was established that the applicant had required net worth. Accordingly, the applicant qualified for grant of licence for inter-state trading in electricity as a category `A` electricity trader, that is, for trading up to 100 MUs of electricity in a year.
On the above considerations, the Commission proposed to grant licence to the applicant as prayed for. A notice under clause (a) Sub-section (5) of Section 15 of the Act was published inviting suggestions/objections to the above proposal of the Commission. M/s Lloyds Finance Ltd., a nonbanking finance company engaged in the business of leasing equipment had filed objections to the proposal. The fundamental objection filed by M/s Lloyds Finance Limited ( the objector) against the applicant was that Cocanada Fisheries Ltd. (earlier Suryachakara Sea Foods Ltd.) and Kalyan Marine & Agro Products Ltd., the sister concerns of the applicant had defaulted in making payments for certain equipment hired by them from the Objector.
(3.) HEARD counsel for both the parties at length on 12.1.2006.;
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