LexM/S NTPC LTD. versus M.P. STATE ELECTRICITY BOARD & ORS.
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[2011] 11 S.C.R. 651 M/S NTPC LTD. v. M.P. STATE ELECTRICITY BOARD & ORS. (Civil Appeal No. 2451 OF 2007) SEPTEMBER 29, 2011 [J. M. PANCHAL AND H.L. GOKHALE, JJ.J A B Electricity Act, 2003 - s. 62 - Determination of Tariff - Power supplied by NTPC to Electricity Boards from its power station - Tariff payable by the Electricity Board to NTPC - C Determination of, by Central Electricity Regulatory Commission - Final tariff determined at a rate lesser than the pre-existing tariff - Collection of excess amount by NTPC during the intervening period - Payment of interest on the differential amount - Claim of Ele<;tricity Board - Rejected by D the Central Commission - Appeal to Appellate Tribunal uls. 111 - Appeflate Tribunal rejected the interest on the. differential amount to the concerned Electricity Boards uls. 62 (6), however, allowed interest on differential amount on basis of justice, equity and fair-play - On appeal held: s. 62 (6) E cannot be pressed into service to claim interest on the differential amounts - It does not state that if the finally determined tariff is less than the provisional tariff or an existing tariff continued by a statutory notification, then interest shall be payable on the differential amount - It is only when a F licensee or generating company deliberately recovers or extracts from a person a price or charge in excess of the price determined uls. 62 (6), such person can claim the excess price or charge paid by him alongwith interest - Instant case was not where the beneficiaries were made to pay the excess ~tariff at the instance of NTPC through force, coercion or threat G - NTPC was not in any way responsible for the delay in process of determination of tariff- Once the tariff was finalized subsequently, NTPC adjusted the excess amount which it 651 H 652 SUPREME COURT REPORTS [2011] 11 S.C.R. A received - Tariff charged at the relevant time was as per the previous notifications - Interest came to be provided subsequently by a Notification under the Regulations of 2004 - Thus, the principles of equity, justice and fair-play could not have been brought in, to award interest to the Electricity B Boards. Interest - Payment of interest on differential amounts - On the ground of justice, equity and fair play - Collection of excess amount of tariff by NTPC from Electricity Board during C the intervening period - Appellate tribunal awarding interest on differential amounts on the ground of justice, equity and fair play - Justification of - Held: The"instant case was not where the beneficiaries were made to pay the excess tariff at the instance of NTPC through force, coercion or threat or in an unjust way - Thus, the principles of equity, justice and fair- D play could not have been brought in to award interest to the Electricity Boards - More so, the terms of the supply agreement, the governing regulation and notifications as a/so the industry practice did not contain any provision for interest - Thus, interest could not be claimed either on the basis of E equity or on the basis of restitution. Madhya Pradesh State Electricity Board (MPSEB), Punjab State Electricity Board (PSEB) and Delhi Vidyut Board (DVB) receive the power generated from the F thermal power plants of NTPC situated at Kawas, Gandhar and Rehand. NTPC filed petitions before the Central Electricity Regulatory Commission for determining the tariff with respect to the power supplied by it during the period 1.4.2001 to 31.3.2004 to MPSEB, G PSEB, Delhi Vidyut Board and others from the Power Stations. The Central Commission by orders dated 1.4.2005, 7 .4.2005 and 2.6.2005 determined the final tariff payable by the Electricity Boards to NTPC at a rate lesser than the pre-existing tariff, and found that NTPC had collected excess amounts during the intervening period, H NTPC LTD. v. M.P. STATE ELECTRICITY BOARD & 653 ORS. and the Electricity Boards became entitled to get the A refund/adjustment of these differential amounts. However, the Central Commission disallowed the claim of the Electricity Boards for payment of interest on the differential amounts between the tariff finally determined by the Central Commission and the pre-existing tariff B continued by the Central Commission until the final determination of the tariff. Thereafter, NTPC adjusted the excess amounts in favour of the purchaser Electricity Boards in their subsequent bills. MPSEB, PSE
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