FSA case referred to HC's full bench

Published: 27th September 2012 12:27 PM  |   Last Updated: 27th September 2012 12:27 PM   |  A+A-

A division bench of the High Court, comprising acting chief justice PC Ghose and justice Vilas V Afzulpurkar, on Wednesday referred to a full bench an appeal made by the AP Central Power Distribution Company Limited challenging an order of the single judge for recovery of fuel surcharge adjustment (FSA) from electricity consumers.

The full bench will decide whether the time limit prescribed under Regulation 45-B(4) of the APERC Regulations 1999 is ultra vires Sections 56, 45, 61 And 62 of the Electricity Act, 2003 and also whether the commission is empowered to condone the delay under Regulation 55 read with Regulation 59 of the Regulations 1999 if the claims preferred by the Discoms for determination of FSA are beyond the time limit prescribed by Regulation 45-B(4).

Earlier, a single judge had ruled that FSA recovery for 2009-2010 shall not be enforced on consumers of the four power distribution companies till disposal of the special leave petitions pending before the Supreme Court and enforceability or otherwise of the said orders would depend upon the result of the SLPs.

The Discoms moved the apex court after a division bench of the High Court had held in the Jairaj Ispat Ltd versus APERC case that time limit prescribed under Regulation 45-B (4) for making application within the time stipulated therein as mandatory and the regulatory commission had no power to condone the delay and undo irreversible conclusions of forfeiture of FSA claimed by the Discoms for such a period. When the SLPs are pending, Thermal Systems (Hyderabad) Pvt Ltd and others filed a petition before  the single judge with regard to recovery of FSA from them by the Discoms for the year 2009- 2010. The single judge granted order in their favour. The  present appeal followed it.


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