- The Rajasthan Electricity Regulatory Commission
Transcription
- The Rajasthan Electricity Regulatory Commission
Rajasthan Electricity Regulatory Commission Petition No. RERC-476/14 In the matter of adjudication of dispute under Section 86 (1) (f) of the Electricity Act, 2003. Coram: Shri Vishvanath Hiremath, Chairman Shri Vinod Pandya, Member Shri Raghuvendra Singh, Member Petitioner : Respondent : M/s DCM Shriram Ltd., Kota 1. 2. 3. 4. Jaipur Vidyut Vitran Nigam, Jaipur (JVVNL) Ajmer Vidyut Vitran Nigam, Ajmer (AVVNL) Jodhpur Vidyut Vitran Nigam, Ajmer (JdVVNL) Raj. Discoms Power Procurement Centre (RDPPC) Date of hearings : 30.10.2014, 11.11.2014, 02.12.2014, 30.12.2014 & 10.3.2015 Present : 1. Sh. P. N. Bhandari, Advocate for Petitioner 2. Sh. Bipin Gupta, Advocate for Respondent 3. Sh. Jaideep Charan, Asstt. Manager, DCM 4. Sh. S.T. Hussain, Ex. En., JVVNL Order Date: 10.04.2015 ORDER 1. M/s DCM Shriram Ltd, (herein after referred to as ‘Petitioner’) has filed this petition on 17.10.2014 under Section 86(1)(f) of the Electricity Act 2003 for adjudication of dispute with Discoms. 2. Notices were issued to Respondents on 31.10.2014 for filing reply. Discoms filed their reply on 23.12.2014 endorsing a copy to the Petitioner. Page 1 of 10 RERC/476/14 3. The matter was heard on 10.03.2015. Sh. P. N. Bhandari, Advocate appeared for Petitioner and Sh. Bipin Gupta, Advocate appeared for Respondents. 4. The Petitioner has made the following submissions in its petition and during the hearing: (i) The Petitioner has Captive Power Plant (CPP) at Kota with capacity of 125 MW. (ii) In 2009, the State authorities invited bids for purchasing electricity from the CPPs of the State. The Petitioner was one of the successful bidders. (iii) The Respondent RDPPC issued an LOI to the Petitioner on 30.6.2009 for supply of round the clock power upto 30 MW. In the LOI, the tariff was fixed at Rs.6.50/kWh. (iv) The procedure of adjustment of bills was indicated at Clause 5 of the LOI, which is reproduced as under: “You will have the option of sale of electricity after meeting requirement of captive use by your industrial unit(s) and meeting commitment for sale of power to Rajasthan Discoms. You will not be eligible for sale of power if your industrial unit(s) is drawing net electricity from the grid i.e. the power exported to the grid should be more than the power drawn from the grid at any instant during the contracted period. The energy drawn from Rajasthan Discoms by your other unit(s)/ sister concern(s) as an HT consumer of the Discoms, located adjoining the industrial unit where your CPP is located and also elsewhere at different places in Rajasthan shall be adjusted/ accounted for, first from the energy supplied on ‘firm’ basis and if the same still remains unadjusted then such unadjusted energy shall be adjusted/accounted for from the energy supplied on ‘Day ahead’ basis, if any to Rajasthan Discoms, on weekly basis during the contracted period. The balance energy, after such adjustment, shall be considered as sale to Rajasthan Discoms, irrespective of whether there exists an open access agreement, between your CPP and RVPN/Discoms for wheeling of power from your CPP to your such other unit(s)/sister concern(s) or not. Such adjustment shall be effected based on weekly meter readings of the other unit(s)/sister concern(s), for which concerned SE (RDPPC) Discoms shall take necessary action. However the power/energy drawn by such other unit(s) or sister concern(s) shall not be considered for the Page 2 of 10 RERC/476/14 purpose of comparing the actual power supply vis-à-vis scheduled power to see that the variation in any time block of 15 minutes is between 95% to 105% or not and also for the purpose of working out the actual supply of energy to see whether the same is at least 80% of the contracted quantity during a week or not. You will provide the details viz Name, Location, Contract Demand and Account No. of the HT connection, indicating the Name of the concerned Discom, in respect of your other unit(s) and/or sister concern(s) to the concerned SE (RDPPC) Discom.” (v) Based on the LOI and mutual discussions with the parties, the Jaipur Discom had issued a clarification on 17.08.2009 with respect to procedure for adjustment of energy to be sold by CPP to Discoms. (vi) All the bills pertaining to the LOI, raised by the Petitioner were settled with no dispute from either side. All contractual obligations were duly fulfilled by both parties. (vii) After lapse of nearly two and half years from completion of all contractual obligations, Respondent unilaterally on 06.11.2012 issued a revised order, modifying the order dt.17.08.2009 which was issued after mutual discussions. (viii) Subsequently, Respondent JVVNL had issued another order dt. 20.02.2013 indicating that prima facie, Rs.27449724/- became recoverable from the Petitioner. The said amount was further revised by Discom to Rs. 37090381/- vide their order dt. 17.05.2013. (ix) This order is an attempt to retrospectively revise the terms and conditions of the contract, as indicated in the LOI. The adjustment procedure was arbitrarily sought to be changed, without even extending a mock formality of seeking the explanation of the Petitioner. The Petitioner vide its letter dated 27.2.2013 protested the action of Discoms. (x) Petitioner vide its letter dt. 01.06.2013 to Discoms reiterated its stand not to impose retrospective demand when the entire contractual obligation has been consummated. (xi) Any unilateral revision of the terms and conditions of the agreement is void ab initio. Even otherwise, a unilateral retrospective change/amendment is not permissible in any contract mutually Page 3 of 10 RERC/476/14 agreed between the parties. Such an act is arbitrary, malafide and patently illegal. (xii) This action is also hit by the doctrine of promissory estoppels, because what had been agreed and promised in the contract cannot be unilaterally amended by one of the contracting parties. (xiii) It is well established through a plethora of judgments of the Hon’ble Supreme Court that except an act of Parliament or State Legislature, no Rule, Regulation, Order or Circular can be issued with retrospective effect. (xiv) Reliance is placed on the various judgments of Hon’ble Supreme Court viz State of Orissa v/s Mangalam Timber Products Ltd. (2004) 1 SCC 139, Hukam Chand etc. v/s Union of India & ors. (1972) 2 SCC 601, Bejgam Veeranna Venkata Narasimloo v/s State of Andhra Pradesh AIR 1998 SC 542, Bakul Cashew Co. and ors. V/s Sales Tax Officer (1986) 2 SCC 365, T.R. Kapur and Ors. vs. State of Haryana and Ors. 1986(SUPP) SCC 584, Sri Vijayalakshmi Rice Mills, New Contractors Co. and Ors. vs. State of Andhra Pradesh (1976) 3 SCC 37. (xv) In LML Ltd. vs. State of UP & ors (2008) 3 SCC 128, the Hon’ble Allahabad High Court had struck down an order of the UP Power Corp. on the ground that it was beyond the jurisdiction of the Corporation. Accordingly the order issued by the Corporation was withdrawn retrospectively. The matter was challenged before the Hon’ble Supreme Court. Even though it was clear that the Corporation’s order was without jurisdiction, still the Hon’ble Supreme Court held that for the lapse of the Corporation, the consumer should not suffer and therefore the quashing of the order was given prospective effect in order to protect the interest of the consumers who had acted upon the circular of the Discom. (xvi) In light of the above facts, Petitioner sought the following directions from the Commission: a) Order dated 17.5.2013 may kindly be quashed and heavy cost should be allowed in favour of the Petitioner in view of the avoidable harassment and forced litigation upon the Petitioner. Page 4 of 10 RERC/476/14 b) Any other relief in favour of the Petitioner, which the Hon’ble Commission deems fit and proper in this case; 5. Sh. Bipin Gupta, Advocate appeared for the Respondent and made the following submission: (i) Present dispute is not covered before the Hon’ble Commission because whatever is sought to be recovered is the amount on account of refund of fixed charges, transformer rent and meter equipment rent which has wrongly been paid to the Petitioner and its sister concerns having HT connection from the Respondents and such a dispute is not maintainable before the Hon’ble Commission and, therefore, the petition is liable to be rejected. (ii) The impugned circular/order dt. 17.08.2009 is only an illustration which has shown as how bill raised to industrial unit / sister concern and how the adjustment should have been made in respect of the units utilized by the industrial concern and not the entire bill raised as it is incumbent on an HT consumer to pay fixed charges, transformer rent and metering equipment rent, etc. under its HT agreement on the basis of tariff determined by this Hon’ble Commission. (iii) When it came to the knowledge of the Discoms that wrong payments were made to the Petitioner on account of refund of fixed charges, transformer rent and metering equipment rent, a clarification was issued on 06.11.2012 and it was decided to review all the payments made earlier. As the adjustment can be given only in respect to the energy utilized and not in respect to the fixed charges, transformer rent and metering equipment rent, therefore, said are liable to be paid by a consumer having a different contract with Respondents. Also, it is an obligation of the consumer to pay charges according to the tariff determined by the Commission under retail tariff order. (iv) In LOI, issued to the Petitioner, it was only a requirement to give details of all HT connections of its industrial units as well as its sister concerns whereas these HT connections would be governed by their own agreement. Page 5 of 10 RERC/476/14 (v) If both the impugned circular/order are seen together then it would be clear that the earlier circular/order also provided for raising of bills by the Discoms as usual, which indicates that a consumer of Discom and a CPP has to pay the charges under its obligation of connection which he had taken from the Respondents. (vi)It is not a case of change in Rules, Regulations or Law but rather it is matter of applying correct application and adjustment which is being done and which was also the requirement of Supply Code Regulations. (vii) The judgments on which Petitioner relied are not applicable to the facts and circumstances of the present case. (viii) It is only correction of the adjustments as per retail tariff order and an HT consumer of a CPP is supposed to pay fixed charges, transformer rent, metering equipment charges as decided by the Commission, even if he does not consume any electricity from the Discoms. Under the adjustments, the refund of the said amounts were inadvertently given by the Discom and such claim and demand for inadvertent payment made to the consumer and such recovery is totally permissible as the consumer was under an obligation to make payment of fixed charges, transformer rent, metering equipment charges and therefore, the demand which has been raised by the Respondents is perfectly legal and justified and the petition filed by the Petitioner is without any basis and is liable to be rejected. (ix) Petitioner, in his present petition, has not challenged the order dated 06.11.2012 or 17.08.2009 and, therefore also, the petition is not maintainable and is liable to be rejected. Commission’s view and decision : 6. There is no dispute between the parties that Petitioner supplied electricity to the Discoms in pursuance to LoI dt.30.6.2009 issued by RDPPC which is produced as Annexure-I of the petition. It is also undisputed that clause 5 of the LoI dealt with energy accounting, billing and payment of the electricity supplied. The Chief Engineer (Commercial), JVVNL issued an Page 6 of 10 RERC/476/14 order dt.17.8.2009 explaining the procedure to be followed for adjustment of energy sold by CPP to Rajasthan Discoms as well as its own industries. It is also undisputed that the bills were settled, based on the terms of LoI read with procedure order dt.17.8.2009. 7. Thereafter JVVNL issued an order dt.6.11.2012 wherein it was clarified that there is an error in billing of energy supplied and energy used for self. While giving credit to the energy utilized for self, fixed charges along with meter rent have been refunded which was incorrect and therefore the bills settled have to be reworked out and the excess amount to the tune of Rs. 2,74,49,724 has to be recovered back. Subsequently this amount has been modified on 17.5.2003 as Rs.3,70,90,381/-. 8. According to the Petitioner’s Counsel Shri Bhandari, the order dt.6.11.2012 through which recovery is sought to be made is illegal. He vehemently contended that once the power supply has been made and the bills are settled as per LoI, the contract stands performed fully and discharged. It cannot be reopened now on the ground that there are errors in settling of the bills. The Respondents’ action is hit by the doctrine of promissory estoppel as the procedure provided in the order dt.17.8.2009 was one which was mutually agreed between the parties. 9. He further contended that the order providing for reworking of bills retrospectively is contrary to law as no authority can revise the terms of an order with retrospective effect that too without giving an opportunity of hearing. In support of this argument, he has cited the following judgments: a) b) c) d) Page 7 of 10 State of Orissa V/s Manglam Timber Products Ltd. (2004) 1 SCC 139. Hukam Chand etc. V/sUnion of India & Ors. (1972) 2 SC 601. Bejgam Veeranna Venkata Narsamloo V/s State Of Andhra Pradesh AIR 1998.SC 542. Bakul Cashew Co. and Ors.V/s Sales Tax Officer (1986)25 SCC 365. RERC/476/14 e) f) g) 10. LML Ltd. V/s State of UP & Ors. (2008) 3 SCC 128. T.R. Kapur and Ors. V/s State of Haryana and Ors. 1986 (SUPP) SCC 584. Shri Vijayalakshmi Rice Mills, New Contractors Co. and Ors. V/s State of Andhra Pradesh (1976) 3 SCC 377. Per contra Shri Bipin Gupta, Learned Counsel for the Respondents has contended that the impugned order is not a statutory order and is only a billing procedure correction order. According to him, while implementing the billing procedure, there was an error which has been corrected and recovery has been ordered. Therefore, it is a simple case of correcting the error and recovery of the amount which was wrongly paid to the Petitioner. He also contended that legal principles submitted by the Petitioners’ Counsel have no application to the present case. 11. We have carefully considered the rival submissions in the light of facts placed before us. In our view, the order dt.17.8.2009 and revised order of adjustment dt.6.11.2012 are only billing procedure order. They do not have any statutory character. They are only contract (LoI) performance orders. Therefore, what will govern the relation is the terms of LoI and not the earlier procedural order. We have perused Clause 5 of LoI which deals with adjustment of bills. As per this clause only the energy billed and paid for self shall have to be adjusted. The procedural order issued on 17.08.2009 is not in accordance with the term of the LOI, the same cannot be relied upon to retain an unjust benefit. 12. As per the Respondents, while settling the bills, instead of giving credit only for the energy charges billed and paid, demand and meter charges were also refunded. On noticing this, the impugned order dt. 6.11.2012 has been issued and the wrongly allowed amount is being ordered to be recovered back. It is submitted by the Respondents that the impugned action is nothing but correcting the error that was committed. Page 8 of 10 RERC/476/14 13. In the above action of the Respondents, we do not find any illegality. Apparently what is being done is only the correction of the error committed. Nobody can claim a vested right in a wrong action taken. If we allow the Petitioner to retain the amount wrongly refunded, it will amount to perpetuating the error. Further it will be unjust enrichment on the part of the Petitioner. This will be inequitable. The contention that the first procedural order was as a result of an agreement has no basis and therefore cannot be accepted. 14. In a recent case of Birla Cement Works (SB (Civil) Writ Petition No.16789 of 2013 & Others), similar question came for consideration before the Hon’ble High Court of Rajasthan. Rejecting the similar arguments made in the present case, the Hon’ble High Court of Rajasthan has held as follows: “Adverting now to the submissions made on behalf of the Petitioners that the recovery of the amount of power factor incentive already extended to the Petitioners from retrospective effect would be incompetent in view of the settled proposition of law that only an Act of parliament or State Legislature can be retrospective and no rule, regulation, order or notification can have retrospective effect, suffice to say that the argument proceeds on the fallacious assumption of retrospectivity in the recovery, which in fact it is not. What is being recovered is the amount, benefit of which has wrongly been extended to the Petitioners. In other words, what benefit has been extended to the Petitioners, was not payable on the date it was granted to them. Therefore, what is being recovered now by the respondent-Discoms is an amount benefit of which has unduly been granted to the Petitioners. They are merely seeking to rectify this mistake. Not making such recovery would tantamount to unjust enrichment of the Petitioners. Thus viewed, recovery of the incentive granted or extended by way of under-billing to the Petitioners cannot be said to be retrospective recovery. The cited judgments are therefore wholly inapplicable.” 15. Page 9 of 10 The above judgment of Learned Single Judge Bench has been affirmed by the Division Bench in DB Special Appeal No.599 of 2014. RERC/476/14 16. Respectfully following the view taken by the Hon’ble High Court of Rajasthan and considering the facts of the present case, we hold that the recovery initiated by the Respondents cannot be termed as illegal and no exception can be taken of the same. 17. Coming to the contention of Shri Bhandari that the action of the Respondents is hit by the principle of promissory estoppel, we are of the view that in a concluded contract there is no question of promissory estoppel. What should govern is the contract and its terms. Any discussions that have taken place before concluding the contract will no longer be relevant unless the contract is not clear. Further in the present case it has not been pointed out what was the promise held out to the Petitioner. Wrong settling of bill cannot amount to a promise. Even otherwise as held by us there was an erroneous action on the part of the Respondents while settling the bills and that cannot stop the Respondents from correcting the error. 18. As regards the contention of Shri Bhandari that no authority can modify the order retrospectively is concerned we are of the view that there is no such retrospective amendment of any statute or statutory order in the present case. As pointed out in the earlier paragraphs, two orders dt.17.8.2009 and 6.11.2012 are neither statutory orders nor have the force of the law. They were only administrative orders for implementing the contract. Consequently the judgments cited by Shri Bhandari in support have no application to the present case. 19. For the foregoing reasons, this petition has to be rejected and accordingly stands rejected. (Raghuvendra Singh) Member (T) Page 10 of 10 (Vinod Pandya) Member (F) (Vishvanath Hiremath) Chairman RERC/476/14