RVAKASH GANGA INFRASTRUCTURE LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner has filed the present petition impugning the "Guidelines for Rooftop and Other Small Solar Power Plants Connected to Distribution Network" (hereinafter referred to as the 'impugned guidelines') issued by the Central Government and has further sought a refund of Rs. 40 lacs which was recovered by respondent nos. 1 and 2 by invoking the bank guarantees submitted by the petitioner.

(2.) THE principal ground urged by the petitioner is that the terms of the impugned guidelines cannot be construed as a valid contract within the provisions of Article 299 of the Constitution of India. It is submitted that the impugned guidelines are non -contractual and therefore, its terms (including terms for encashment of bank guarantees furnished under the guidelines) would not be binding on the petitioner. It is further contended that the impugned guidelines embody a scheme to provide subsidy to the power distribution utilities and do not envision any subsidy to the power generating entity. It is contended that the electricity tariff has to be statutorily fixed on the basis of the cost of production and, therefore, no benefit is derived by the petitioner under the impugned guidelines. It is contended that providing bank guarantee to respondent no. 2 - Indian Renewable Energy Development Agency Limited (IREDA) is, thus, wholly extraneous to the statutory scheme of tariff fixation. It is argued that in the given circumstances, the requirement for furnishing bank guarantees is without consideration and the amount recovered by respondent no. 2 by invoking the bank guarantees furnished by the petitioner are liable to be refunded. The brief facts relevant for examining the controversy in the present petition are as under.

(3.) I have heard the learned counsel for the petitioner.