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M/S. DLF POWER LIMITED versus CENTRAL COALFIELDS LTD. & ANR

Citation: [2009] 5 S.C.R. 472 · Decided: 01-04-2009 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Disposed off

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Judgment (excerpt)

[2009] 5 S.C.R. 472 
A 
MIS. DLF POWER LIMITED 
i-
II. 
CENTRAL COALFIELDS LTD. & ANR. 
(Civil Appeal No. 3109 of 2006) 
B 
APRIL 01, 2009 
[DR. ARIJIT PASAYAT AND LOKESHWAR SINGH 
PANTA, JJ.] 
ELECTRICITY ACT, 2003: 
c 
Fixing of tariff - Appeals disposed of with the direction 
that in case respondent no. 1 files appeal within four weeks, 
the same shall be considered by the appellate Tribunal in 
.,,.__ 
accordance with law - All questions left open to be decided 
โ€ข ' 
D on merits without the question of limitation in filing the appeal. 
In the instant appeals filed against the judgment of 
the Appellate Tribunal for Electricity, the Court directed 
for determination of actual capital cost based on the 
E 
formula in the 'Power Purchase Agreement' entered into 
between the parties. Respondent no. 1 in CA No. 3109 of 
2006 stated that the actual capital cost and tariff was 
determined only on the basis of documents supplied by 
the appellant without obtaining any comments/inputs 
from respondent no. 1. 
~ -
F 
Disposing of the appeals, the Court 
HELD: Since the complex process of evaluation is 
involved in fixing the tariff and it would be in the interest 
G of th-, parties that challenge, if any, to the report is made 
before the prescribed authority. It is, therefore, directed 
that in case CCL files appeal within four weeks, the same 
shall be considered by the Appellate Tribunal in 
accordance with law expeditiously. All questions are left 
H 
472 
~ 
DLF POWER LIMITED v. CENTRAL COALFIELDS LTD. 
473 
&ANR. 
open to be decided without the question of limitation 
A 
relating to the filing of appeal. CCL shall continue to make 
the ,payment at the rate a which it has been paying in 
respect of both Rajrappa and Giddi plants. It is made clear 
.I 
that by providing interim protection, no express opinion 
on the merits of the case has been expressed. [Para 6] 
B 
[475-8-D] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
3109 of 2006. 
From the Judgment & Order dated 11.05.2006 of the c 
Appellate Tribunal for Electricity, New Delhi in Appeal No. 166 
of 2005. 
ยท'-., 
S. Ganesh, Kamal Budhiraja, Nishant Menon, Sidharth 
;;:pi. 
> 
Bawa, Dua Associates and Anip Sachtey for the Appellant. 
D 
Kamlendra Mishra and Shiraj Contractor Patodia for the 
" 
' 
Respondent. 
The Judgment of the Court was delivered by 
E 
DR. ARIJIT PASAYAT, J.1. These two Civil Appeals are 
inter related and are, therefore, disposed of by this common 
; 
order. Civil Appeal No. 3561 of 2006 has been filed by Central 
I 
Coalfields Limited (in short the 'CCL') under Section 125 of the 
-
j 
Electricity Act, 2003 (in short the 'Act') impugning the judgment 
F 
and order dated 11th May, 2006 passed by the Appellate 
--< 
Tribunal for Electricity, New Delhi (in short the 'Appellate 
Tribunal') in Appeal No.166 of 2005. The other appeal i.e. Civil 
Appeal No. 3109 of 2006 has been filed by DLF Power Limited 
(in short the 'DLF') challenging part of the judgment dated 
G 
11.5.2006 passed by the Appellate Tribunal. By order dated 
> 
11. 7.2007 this court directed the Cost Accounts Wing of M/s. 
Ernst & Young to determine the actual capital cost based on 
the formula in the "Power Purchase Agreement" dated 8.2.1993 
between CCL and DLF. This Court further directed that the copy 
H 
-
474 
SUPREME COURT REPORTS 
(2009] 5 S.C.R. 
A of the report of the Cost Accounts Wing be given to the parties 
and to the Jharkhand State Electricity Regulatory Commission 
(in short the 'State Commission'). It was further directed that 
the State Commission on receipt of the report shall determine 
the tariff as per the terms of the "Power Purchase Agreement" 
B between the parties for the two power plants. 
2. CCL's case is that the Cost Adcounts Wing of M/s. Ernst 
& Young only on the basis of the documents supplied by DLF 
have carried out the exercise of determining the actual capital 
c cost of the two power plants without even asking for any 
comments or any inputs from CCL while working out the actual 
capital cost. Grievance is that the report was based solely on 
the basis of the documents supplied by DLF, copies of which 
were also not made available to CCL. Mis. Ernst & Young have 
....
D 
determined the capital cost of the two power plants at Giddi at 
Rs.72.34 crores and for Rajrappa determined the actual capital 
cost of Rs.67.45 crores. On receipt of the report from the Cost 
Accounts Wing of M/s. Ernst & Young, State Commission 
determined the tariff

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