Gaya power distribution row SC dismisses plea of private co

  • | Sunday | 22nd July, 2018

The division bench order paved the way for the government company takeover of the power distribution job.Aggrieved by the division bench order, the private company filed an appeal in the Supreme Court. Denying any wrongdoing on its part, the India Power preferred arbitration as well as litigation. The single bench order was later stayed by a division bench of HC comprising Justices A K Tripathi and Nilu Agrawal. The India Power appeal was finally dismissed on Friday.R Lakshmanan, managing director of SBPDCL, said the distribution company was committed to ensuring quality power and a transparent billing mechanism. On July 3, the SC issued notice to the SBPDCL seeking its response within two weeks.

GAYA: A Supreme Court bench comprising Justice Rohinton Fali Nariman and Justice Indu Malhotra on Friday dismissed the appeal filed by India Power, the private company earlier having franchise for electricity distribution in Gaya town, Bodh Gaya and Manpur areas of the district, for the retention of its power distribution rights.Earlier, the South Bihar Power Distribution Company Ltd (SBPDCL) had prematurely terminated the 15-year agreement it had signed with India Power and took over the power distribution job from the intervening midnight of July 3 and 4.India Power had got the distribution franchise for 15 years in 2014 with a provision containing premature termination of the contract for reasons of performance deficit and violation of the terms of the agreement subject to a one-month notice prior to the final termination of agreement.Earlier, accusing India Power of not honouring its commitment on revenue share and other financial obligations, the SBPDCL had served several notices threatening withdrawal of franchise rights. Denying any wrongdoing on its part, the India Power preferred arbitration as well as litigation. Besides approaching the arbitrator, the private company approached the Patna high court seeking an order to restrain the government company from executing its notice to terminate the agreement.A single judge bench of Justice Vikash Jain on June 22 temporarily restrained SBPDCL from any coercive action against the private company till the resumption of arbitration proceedings. The single bench order was later stayed by a division bench of HC comprising Justices A K Tripathi and Nilu Agrawal. The division bench order paved the way for the government company takeover of the power distribution job.Aggrieved by the division bench order, the private company filed an appeal in the Supreme Court. On July 3, the SC issued notice to the SBPDCL seeking its response within two weeks. The India Power appeal was finally dismissed on Friday.R Lakshmanan, managing director of SBPDCL, said the distribution company was committed to ensuring quality power and a transparent billing mechanism. According to Laxmanan, in the last four years, power availability has gone up from 1700 MW to 5000 MW.India Power general manager (finance) Rakesh Ranjan said the company has accepted the SC verdict with grace.

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