Key Facts
The Telangana High Court has dismissed a writ petition filed by M/s GVK Gautami Power Limited nearly nine years ago, seeking reimbursement of ₹24.28 crore from power distribution companies (DISCOMs) of Andhra Pradesh and Telangana. The court also imposed a cost of ₹1 lakh on the petitioner.
Court's Observations and Ruling
Justice Nagesh Bheemapaka, delivering the verdict, held that the plea lacked territorial jurisdiction. The judge noted that the petitioner's power project is located in Peddapuram, Kakinada district, Andhra Pradesh, and the Power Purchase Agreement (PPA) was executed with authorities operating in Andhra Pradesh. All transactions and the cause of action arose in Andhra Pradesh, falling under the jurisdiction of the Andhra Pradesh High Court. Therefore, the Telangana High Court could not entertain the petition.
The court further observed that an order passed by a subordinate tribunal—in this case, the Andhra Pradesh Electricity Regulatory Commission (APERC) in 2013—cannot be enforced through writ jurisdiction. The judge expressed astonishment that the DISCOMs had not made any claim for the amount before the National Company Law Tribunal (NCLT), where the petitioner company's insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) are pending. They also failed to approach the Insolvency Resolution Professional regarding their claim, which was pending before the Central Electricity Regulatory Commission.
Justice Bheemapaka directed the officials of the TRANSCO departments of both states and all DISCOMs to investigate who was responsible for not making the claim, resulting in a loss to the public exchequer.
Background of the Case
GVK Gautami Power Limited, engaged in the generation and sale of electrical energy, had entered into a PPA in 1997 with the then Andhra Pradesh Electricity Board. After the bifurcation of the state, the board was divided into different TRANSCO companies. The petitioner argued that the DISCOMs of both states were bound to reimburse all taxes levied on its income, including the Minimum Alternate Tax (MAT) paid to the Income Tax department.
The company filed the writ petition in the Telangana High Court seeking reimbursement of ₹24.28 crore, but the court found it lacked jurisdiction.
Impact and What Readers Should Know
This ruling underscores the importance of territorial jurisdiction in legal proceedings. Companies must file petitions in the appropriate court where the cause of action arises. The court's strong remarks about the DISCOMs' failure to claim dues before the NCLT highlight the need for vigilance by public sector entities to protect public funds. The case also reflects the complexities arising from the bifurcation of Andhra Pradesh and the division of assets and liabilities.
FAQ
- Why did the Telangana High Court dismiss the GVK Gautami Power petition? The court dismissed the petition on grounds of lack of territorial jurisdiction, as the power project and the power purchase agreement were based in Andhra Pradesh, not Telangana.
- What was the amount sought by GVK Gautami Power? The company sought reimbursement of ₹24.28 crore from power distribution companies of Andhra Pradesh and Telangana.
- What costs were imposed by the court? The court imposed a cost of ₹1 lakh on the petitioner, to be paid to the respondents.
- What did the court observe about the discoms' failure to claim before NCLT? The court was 'awestruck' that the discoms did not claim the amount before NCLT where the company's insolvency proceedings are pending, and ordered an inquiry into who was responsible for the loss to public exchequer.