Approach TNERC for relief, says Madras High Court
IndBarath Thermal approached the court after Tangedco failed to pay a huge sum for receiving coal for its power plants
By : DC Correspondent
Update: 2015-11-15 06:37 GMT
Chennai: The Madras high court has said that a coal supplying company, which has moved the court, can approach the Tamil Nadu Electricity Regulatory Commission (TN ERC) seeking cancellation of licence granted to Tamil Nadu Generation and Distribution Corporation (Tangedco) for non-payment of dues.
IndBarath Thermal Power Limited approached the court after Tangedco failed to pay a huge sum for receiving coal for its power plants. In the petition, the company represented by its Manager (Legal), submitted the company has been engaged in generating and supplying power. It runs a coal-based Power Generating Plant in Tuticorin district. It has been supplying electricity generated from the plant to Tangedco.
In a letter of acceptance dated September 26, 2014, by Tangedco, the company was approved for supplying coal from October 1, 2014 to September 30 this year.
The petitioner sought a direction to the Registrar, Tamil Nadu Electricity Regulatory Commission to revoke the licence granted to Tangedco under Sec.19 of the Electricity Act 2003 since Tangedco kept Rs 254.53 crore payable to the firm towards principal and Rs 31.90 crore towards belated payment surcharge.
Additional advocate general P.H.Aravindh Pandian, submitted that he has got serious objection to the maintainability of the writ petition since the relief sought is a consequence of a money claim from Tangedco. Justice T.S. Sivagnanam said at the very inception, the court made it clear that such a relief sought for could not be granted for more than one reason.
Firstly, for the sum due, the petitioner has to approach the appropriate forum for realising the dues and secondly there was no representation before the Registrar, TNERC, seeking revocation of the licence of Tangedco. It is left open to the petitioner to move the Commission for necessary relief, the judge said.
Download the all new Deccan Chronicle app for Android and iOS to stay up-to-date with latest headlines and news stories in politics, entertainment, sports, technology, business and much more from India and around the world.