IN RE: CHROMATIC INDIA LIMITED Vs. STATE

JUDGEMENT

(1.) THE applicant, Chromatic India Limited, a company registered under the Companies Act, 1956 has made the present application under Sub -section (1) of Section 15 of the Electricity Act, 2003 (36 of 2003) (the Act) read with Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of Trading licence and other related matters) Regulations, 2009 (hereinafter referred to as 'the trading licence Regulations') for grant of Category - III licence for inter -State trading in electricity in industrial units of Maharashtra, Madhya Pradesh and neighboring States i.e Chhattisgarh, Rajasthan, Karnataka and Tamil Nadu. The notices in accordance with Sub -section (2) of Section 15 of the Act read with Clause (4) of Regulation 6 of the trading licence Regulations were published by the applicant on 12.4.2011. In response to the said public notice, no objections have been received.

(2.) IN accordance with Regulation 3 (3) of the trading licence Regulations, a person applying for Category -III trading licence should have net worth of Rs. 5 crore, and should have maintained minimum current ratio and liquidity ratio of 1:1, consistently for three years immediately preceding the year in which the application is made or such lesser period during which the applicant has been incorporated, registered or formed. The applicant was incorporated on 21.8.1987. Based on the financial details submitted by the applicant for three years preceding the date of application i.e for 2008 -09, 2009 -10 and 2010 -11, it was established that the applicant had the required net worth, current ratio and liquidity ratio for grant of Category -III trading licence. Accordingly, the Commission came to the conclusion that the applicant prima -facie qualified for grant of licence for inter -State trading in electricity as a category -III electricity trader.

(3.) THE applicant vide its affidavit dated 2.8.2011 had undertaken that the whole process of recruiting the requisite staff to meet the technical requirement of Regulation 3 (2) of the trading licence Regulations would be completed before the grant of trading licence. The applicant vide its affidavit dated 6.9.2011 has submitted that it has recruited one Degree Engineer with 30 years experience and one Chartered Accountant with 20 years in the field of Finance, Commerce and Accounts. The applicant has also placed on record the bio -data of the recruitees. On perusal of the record, we are satisfied that the applicant has recruited the requisite staff meeting the requirement of Regulation 3 (2) of the trading licence Regulations.