NARAYANPUR POWER COMPANY Vs. KARNATAKA ELECTRICITY

JUDGEMENT

(1.) M /s Narayanpur Power Company Private Limited, a generating company has preferred this appeal against the order dated 23rd December 2010, passed by the Karnataka Electricity Regulatory Commission, respondent no. 1 herein whereby it declared the Power Purchase Agreement dated 16th January, 2004 purported to have been executed between the appellant and the Karnataka Power Transmission Corporation Ltd(KPTCL), a government company which is the by product of the Karnataka Electricity Reform Act,1999 to be valid.

(2.) FOR the purpose of appreciation of the merit of the appeal it is necessary to say that prior to coming into force of the Electricity Act of 2003 that came into effect from 10th of June, 2003 the Karnataka Legislative Assembly passed Karnataka Electricity Reform Act 1999 (for short, the State Act, 1999 ) which by a Government Notification came into force on 1st June, 1999 and, which according to the appellant, had overriding effect over the provisions of the Indian Electricity Act, 1910 and the Electricity ( Supply) Act 1948 ( for short, the 1948 Act). Under the 1948 Act the Karnataka State Electricity Board was formed and under the State Act, 1999 the said Board was dissolved and the job of transmission, bulk supply, retail distribution business of the erstwhile Board were vested with the Karnataka Power Transmission Corporation Limited with effect from 1st April, 2000 under a transfer scheme in terms of section 18 (4) of the Reforms Act. 1999. The Electricity Regulatory Commission 1998 Act, came into force on 25th April, 1998, and it was repealed along with the Electricity Act, 1910 and the Electricity (Supply) Act 1948 by the Electricity Act ,2003 which came into force from 10th June, 2003.

(3.) ON 16.8.2000 the State Commission passed an order directing KPTCL to obtain a transmission license despite it being a State Transmission Utility under the 1910 Act, on the ground that a transmission license under the State Reforms Act, 1999 is different and distinct from being a State Transmission Utility under the 1910 Act. On 6.12.2000 the State Commission granted transmission licence to KPTCL and on 7.12.2000 it granted supply licence to the said KPTCL under the State Reforms Act, 1999.