GLOBAL ENERGY LTD Vs. CENTRAL ELECTRICITY REGULATORY COMMISSION

JUDGEMENT

(1.) This writ petition challenges the validity of Clause (b) nd (f) ofhe Regulation 6A of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of Trading License and other related matters) (Amendment) Regulations 2006 notified by the respondent i.e.,CERC on 13th April 2006. Clause (b) and (f) of Regulations 6 A of the CERC read as follows:

(2.) The brief facts of this case as per the case setup by the Petitioner No.1, Global Energy Ltd. are as follows: (a) In November 1994, the petitioner No.1 was incorporated as a public limited company. (b) On 30th January 2004, the respondent CERC in exercise of its power under Section 178 of the Electricity Act, 2003, (hereinafter referred to as the "Act") notified the CERC (Procedure, Terms and Conditions for grant of Trading License and other related matters), Regulations, 2004 (hereinafter referred to as the Trading License Regulations, 2004"). Section 178 of the Act reads as follows: "178. Powers of the Central Commission to make regulations- (1) The Central Commission may, by notification make regulations consistent with this Act and the rules generally to carry out the provisions of this Act. (c) On 23rd March 2004, the Petitioner No.1 filed before the CERC, a Petition No.31/2004 for grant of inter-state Trading License under Category 'A' and an interlocutory application No.15/2004 seeking permission to trade in the electricity pending the final disposal of its petition for grant of inter-state trading license, as the petitioner No.1 had been engaged in inter-state trading of electricity prior to the commencement of the Act. (d) On 30th March, 2004, the petitioner No. 1 in compliance of Regulation 4 of the Trading License Regulation, 2004, the petitioner published a notice with respect to the aforesaid petition before the CERC for grant of interstate Trading License in all the editions of Indian Express, Financial Express and Jansatta. (e) The CERC by order dated 31st March, 2004 allowed the petitioner No.1's interlocutory application and permitted it to undertake interstate sale and purchase of electricity up to 15th May, 2004 or till the disposal of its main application for grant of inter-state trading license, whichever was earlier. The interlocutory order was extended from time to time by the CERC. (f) On 17th June, 2004, an objection was received by the CERC from one Mr. Manish D. Salkar with respect to the publication of the aforesaid notice by the petitioner No. 1. The said objections were dismissed by the CERC by an order dated 30th June, 2004

(3.) It has been indicated to us during the course of the final hearing of the present writ petition that the scope of the present writ petition shall be confined to the challenge of the vires of the Clause (b) and (f) of Regulation 6A of the CERC without getting into the merits of the impugned order of the CERC dated 20th August 2006 rejecting the petitioner No.1's application for the grant of trading license.