- (1.) THE Commission by its order dated 13.5.2008 directed the respondent to liquidate the principal amount of UI arrears in 6 equal monthly installments @ Rs. 111 crore per month, starting from June 2008, in addition to payment of current UI dues. THE directions of the Commission were also conveyed to the senior functionaries of Government of Jammu & Kashmir and the Central Government including the Chief Secretary, Government of J & K.
(2.) The respondent paid an amount of Rs. 109.98 crore in the month of June 2008, but no payment was made during the months of July and August 2008, thereby leading to non-compliance of specific direction of the Commission as contained in the said order dated 13.5.2008. Under the above circumstances, the Commission by its order dated 10.9.2008 issued show cause notice to the respondent directing it to explain, as to why penalty under Section 142 of the Electricity Act, 2003 (the Act), be not imposed on it. Accordingly, matter was listed for hearing after issue of the show cause notice. The representative of the respondent stated that the installments @ Rs. 111 crore per month for the months of July, August 2008 (the subject matter of the show cause notice) and September 2008 could not be paid due to the then prevailing extraordinary disturbed conditions in the State, Jammu as well as Kashmir regions. He informed that during the period of trouble, the agitators damaged around thirty thousand consumer energy meters which adversely affected the billing process. As a result, revenue realization process received a severe setback, it was stated. The representative of the respondent informed that despite the adverse conditions, payment of Rs. 61.14 crore was made in the end of September 2008. It was further stated that a credit of over Rs. one hundred crore accrued in favour of the J & K State in the form of UI till August 2008.
(3.) THE representative of the respondent requested that in view of the extraordinary circumstances which the State faced, it may be exempted from operation of penalty clause and the notice be discharged. He sought relaxation in payment schedule of outstanding UI charges decided by the Commission in its order dated 13.5.2008. He undertook to pay a sum of Rs. 28 crore during the current month (October 2008) and Rs. 20 crore per month thereafter. Subsequently, an affidavit on these lines has been filed on behalf of the respondent by Shri Abdul Rashid, CE.;