M/S NTPC LTD. versus M.P. STATE ELECTRICITY BOARD & ORS.

M/S NTPC LTD. versus M.P. STATE ELECTRICITY BOARD & ORS.

Section 62(6) does not permit claim for interest on tariff differentials in cases where the generating company charged as per interim orders or prevailing notifications and there was no deliberate excess recovery in violation of determined tariff; nor can interest be awarded on grounds of equity, justice and fair-play in the absence of specific provision, agreement, or unjust enrichment.

Parties
Appellant: M/S NTPC Ltd.; Respondent: Madhya Pradesh State Electricity Board; Respondent: Punjab State Electricity Board; Respondent: Delhi Vidyut Board; Respondent: Central Electricity Regulatory Commission
Jurisdiction
India
Judgment Date
29 September 2011
Procedural Posture
Civil Appeal / Final Appellate Decision After Cross Appeals From Order of the Appellate Tribunal for Electricity
Outcome
Appeals by NTPC allowed; appeals by Electricity Boards dismissed.
Legal Topics
Tariff Determination, Interest on Differential Tariff, Equity and Restitution in Electricity Tariff, Jurisdiction of Regulatory Authorities
Electricity Law Administrative Law Tariff Determination Interest on Differential Tariff Equity and Restitution in Electricity Tariff Jurisdiction of Regulatory Authorities

Case Brief

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Parties

M/S NTPC Ltd.

Appellant

Madhya Pradesh State Electricity Board

Respondent

Punjab State Electricity Board

Respondent

Delhi Vidyut Board

Respondent

Central Electricity Regulatory Commission

Respondent

Procedural Posture

Civil Appeal / Final Appellate Decision After Cross Appeals From Order of the Appellate Tribunal for Electricity

Legal Issues

  1. 1 Whether interest is payable under Section 62(6) of the Electricity Act, 2003 on the differential tariff amounts collected during the period between provisional/existing tariff and final tariff determination by the Central Electricity Regulatory Commission.
  2. 2 Whether interest can be awarded on the basis of equity, justice, and fair-play when excess tariff is collected pending regulatory determination.

Ratio Decidendi

Section 62(6) does not permit claim for interest on tariff differentials in cases where the generating company charged as per interim orders or prevailing notifications and there was no deliberate excess recovery in violation of determined tariff; nor can interest be awarded on grounds of equity, justice and fair-play in the absence of specific provision, agreement, or unjust enrichment.

Court Disposition

Appeals by NTPC allowed; appeals by Electricity Boards dismissed.

Orders

  • Civil Appeal Nos. 2451, 2452 and 2493/2007 filed by NTPC are allowed.
  • Civil Appeal Nos. 3972 and 4231/2007 filed by PSEB and DVB are dismissed.