HC stays KERC order on Mescom

 Hearing a petition filed by the Pune Power Development Private Ltd, Justice H N Nagmohan Das stayed the KERC order dated  October 21, 2009 and permitted the petitioner to file an appeal before the KERC for relief.

Mescom had entered into an agreement with the company regarding supply of power to BSES Rajdhani Power ltd (BRPL),  New Delhi through a barter system. Mescom was supposed to supply power to BRPL with the petitioner acting as a mediator during the July, August and September 2008.

The BRPL was to receive power from Mescom during between July 1 and September 15, 2008 and in return, had to supply 105 per cent of power to Mescom in February, March and April, 2009.

Accordingly, Mescom had supplied 37.929 MU to BRPL from July 1, 2008 to July 26, 2008. Due to shortage of rainfall and coal, Mescom had stopped supply and cancelled its intent and intimated the same to the  company.

Subsequently, Mescom had communicated to the petitioner’s company that the BRPL has to return 105 per cent of power about 37 MW during March 2009, the petitioner’s company had refused to accept the suggestions of Mescom.  Mescom filed an application before KERC seeking compensation of Rs. 39.32 crore from petitioner company as breach of agreement. The KERC has accepted the petition of Mescom by overruling the objection.

The petitioner challenged the KERC order and stated that the KERC has no jurisdiction to hear the matter of inter-state transaction of power supply as it was beyond its jurisdiction.