MHC allows Tangedco to pay due amount with installments to Power Trading Corporation

CHENNAI: The Madras High Court directed the State to settle the due amount Rs 600 crore to the Power Trading Corporation (PTC) in four installments considering the financial difficulties of the government in settling the amount in lump sum.

Considering the submission of the State that Tangedco is facing multiple difficulties for providing uninterrupted electricity power supply to the consumers and currently facing financial difficulties, the court allowed the corporation to settle the due amount in four installments, wrote Justice SM Subramaniam.

The State should pay the installment on or before the 15th day of every month, read the judgment.

It is made clear that the court has not granted waiver of late payment surcharge (LPS) in respect of the dues, including the dues to be paid, as per the orders of Central Electricity Regulatory Commission (CERC).

The petitioner-Tangedco is at liberty to raise all the grounds on merits before Appellate Tribunal for Electricity (APTEL) in pending appeal, wrote the judge.

The Tangedco moved a petition before the HC seeking to quash the demand notice issued by the PTC India as per CERC.

On January 5, the CERC directed the Tangedco to make payment of monthly invoices raised by the petitioner for the months of February 2021 to May 2021 and September 2021 along with the LPS. However, aggrieved by this order, Tangedco moved the APTEL. When the appeal is pending before the tribunal the Tangedco approached HC to quash the demand notice issued by the PTC.

Senior counsel P Wilson representing the Tangedco submitted that the demand made by the PTC, is excess, unreasonable and not in consonance with the directives of the CERC's order, and also provisions of the Electricity Act and the Rules.

Senior counsel Vijay Narayan representing PTC submitted that it has to settle the dues to the generators, who supplied power. T

herefore, the demand raised, cannot be questioned and the grounds raised on merits, are to be adjudicated in the pending appeal before APTEL.