Telangana High Court grants interim protection to power distribution companies over recovery of invoices worth ₹24.14 crore

Justice E.V. Venugopal of the Telangana High Court on Wednesday passed an interim order staying the implementation of invoices amounting to ₹24.14 crore uploaded on the PRAAPTI portal for recovery from the power distribution companies of Telangana. 

The interim order was passed after hearing a writ petition filed by way of lunch motion by the Southern and Northern Power Distribution Companies of Telangana to restrain the Union government and others from initiating any coercive steps against them for recovery of the invoices. The two power distribution companies made the Power Finance Corporation Limited, PFC Consulting Limited, Grid Controller of India, M/s Lanco Kondapalli Power Limited, the Andhra Pradesh Power Coordination Committee and the power distribution companies of AP along with the Centre as respondents in the petition. 

Referring to the four invoices uploaded on the portal totalling ₹24.14 crore, the Telangana power companies contended that the amounts did not qualify as ‘dues’ or ‘outstanding dues’ under the Electricity (Late Payment Surcharge and Related Matters) Rules- 2022 and the Electricity Act-2003. The Rules cannot be invoked against the two companies, the petitioner’s counsel argued. 

The two companies had rejected the invoices contending that they were historical in nature and not covered under the LPS Rules. Already, a letter was addressed to the Chief Executive Officer of PFC Consulting Limited requesting for removal of the invoices. However, there was no response to the letter, the counsel said. 

The power companies field an appeal before the Appellate Tribunal for Electricity against the CERC order in the matter. It was listed for hearing on October 28, they said. The PRAAPTI portal cannot entertain invoices arising prior to the issuance of LPS Rules-2022. The present invoices were related to works dating back to year 2000-01. Allowing this would result in reviving every barred and stale claim, the companies contended. 

In the backdrop of El Nino, the Telangana State was witnessing high demand for electricity for agriculture needs. To meet this, the companies were making arrangements through power exchanges and from sources outside the State through national grid. If the invoices were not suspended, the National Load Despatch Centre may stop the companies’ attempts for short-term access and force them to load restrictions affecting farmers, the counsel said. 

The interim directions would be in force till October 28, the judge said.