HYDERABAD: The Telangana High Court has dismissed a writ petition filed by GVK Gautami Power Limited seeking reimbursement of Rs 24.28 crore towards Minimum Alternate Tax (MAT) along with interest, while directing Andhra Pradesh and Telangana power utilities to investigate officials responsible for failing to safeguard public funds during insolvency proceedings.
Justice Nagesh Bheemapaka held that the petition, which sought implementation of an order passed by the erstwhile Andhra Pradesh Electricity Regulatory Commission (APERC), was essentially like execution proceedings and therefore not maintainable under Article 226 of the Constitution.
GVK Gautami Power had relied on APERC’s 2013 order directing reimbursement of MAT paid for the financial years 2009-10 and 2010-11. The order had been upheld by the Appellate Tribunal for Electricity (APTEL) and later attained finality after dismissal of the utilities’ appeal by the Supreme Court.
However, the court accepted the preliminary objections raised by AP TRANSCO and DISCOMs, holding that the entire cause of action arose in Andhra Pradesh, where the power project is located and where the Power Purchase Agreement was executed. Consequently, the Telangana High Court lacked territorial jurisdiction to entertain the petition.
The court further observed that the Electricity Act, 200,3 provides an effective alternative remedy, noting that electricity regulatory commissions possess powers akin to civil courts and can execute their own orders.
While dismissing the writ petition with costs of `1 lakh, the court expressed concern that AP and Telangana power utilities had failed to lodge claims before the National Company Law Tribunal (NCLT) or the Insolvency Resolution Professional in insolvency proceedings involving the power company, despite having a pending claim exceeding Rs 1,100 crore before the Central Electricity Regulatory Commission (CERC).
Describing the omission as potentially causing a “heavy loss to the public exchequer,” the court directed the Chairmen and Managing Directors of AP and Telangana TRANSCOs and all DISCOMs to identify and probe those responsible.