Telangana High Court on Thursday quashed the Central government order issued a year ago instructing Telagana State government to pay ₹3,441.78 crore in principal plus ₹3,315.14 crore late payment surcharge to its counterpart in Andhra Pradesh as part of post-bifurcation power dues.
A bench of Chief Justice Alok Aradhe and Justice N.V. Shravan Kumar, pronouncing verdict in a batch of writ petitions challenging the Union government’s order, gave liberty to the parties to take recourse to remedy available in law. “...In our opinion, it is eminently desirable that the dispute between them is resolved amicably, preferably through mediation,” the bench said in the judgement. The bench hoped the two governments would sort out the disputes through mediation.
The PPAs envisaged alternative forums for resolution of disputes. Without resorting to them, the APGenco approached the Union government under Section 92 of the AP Reorganisation Act, the judgement said. The Telangana State Discoms had not admitted the quantum of power dues to be paid to APGenco pertaining to the supply of electricity from June 2, 2014 to June 10, 2017.
In fact, TS Discoms insisted on a total settlement of the dues to be paid or received by them, the verdict said. Referring to the Centre’s order issued under Section 92 of the AP Reorganisation Act, the bench said the principles of natural justice had to be read into it.
Since the order or direction created a civil liability for the petitioners, “the observance of principles of natural justice is all the more necessary,” the bench remarked.
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*2009: Three Power Purchase Agreements made between APGENCO and AP DISCOMs for period from 2006 to 2019.
*2014: AP bifurcated into Telangana and residuary AP.
*June 16, 2014: AP cancelled PPAs.
*July 1, 2014: Centre constituted Neerja Mathur Committee to resolve power issues between two States.
*2018: Neerja Mathur Committee dissolved.
*2022: Telangana government, power utility companies filed three writ petitions seeking Rs. 4774 crore, Rs. 1,730 crore and Rs. 11,324 crore from AP towards post bifurcation dues. All three pleas are pending.
*August 22, 2022: Centre orders (under section 92 of AP Reorganisation Act) Telangana to pay power dues to AP.
*September 26, 2022: Telangana Power DISCOMs, Telangana State Power Coordination Committee file writ petitions in HC challenging Centre order.
