HC upholds stay on payment to Reliance Energy
By Our Corporate Bureau | 01 Jan 2005
The order was passed on the writ petition filed by the Tata Power Company (TPC) challenging the Maharashtra Electricity Regulatory Commission (MERC) order on the sharing of 'standby charges' between TPC and Reliance Energy Ltd. (REL).
Chief justice D C Bhandari and justice D Y Chandrachud, maintaining that the interim order in the matter of 'standby charges' stood and further referred the issue to the appellate tribunal, which will start functioning by January 17, 2005.
The court has asked the appellate tribunal to dispose off the matter within four months from the date of the receipt of the order.
To safeguard the interests of its stakeholders, including consumers and shareholders, Tata Power had earlier appealed against MERC's order of May 31, 2004, before a 'division bench' of the Bombay High Court. The bench, comprising justice Rebeiro and justice Sathe, in its order of July 1, 2004, had stayed MERC's order directing a payment of Rs315 crore to REL and had instead directed Tata Power to furnish a bank guarantee for the amount.
With reference to the amount due to MSEB, the High Court had directed Tata Power to pay Rs100 crore in four weeks. The Court had directed the balance amount to be paid in two equal installments, due on 31st of October 2004 and 31st of January 2005 respectively. Tata Power has paid the installments due and is also on schedule to make good its commitment on the final installment due in January.
