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SC asks MPEB to return over Rs 55 crore to power companies
New Delhi, Jan 23: Taking exception to the long delay in refund of security deposits to power companies, the Supreme Court has directed Madhya Pradesh Electricity Board (MPEB) to give back Rs 55.23 crore with interest to Bhilai Power Supply Company Ltd (BPSCL) and Daewoo Power India Ltd (DPIL).
New Delhi, Jan 23: Taking exception to the long delay in refund of security deposits to power companies, the Supreme Court has directed Madhya Pradesh Electricity Board
(MPEB) to give back Rs 55.23 crore with interest to Bhilai Power Supply Company Ltd (BPSCL) and Daewoo Power India Ltd (DPIL).
A bench comprising Justice Shivaraj V Patil and Justice Arijit Pasayat rejected the plea of the MPEB that after the state re-organisation act, the original board had been succeeded by MPEB and Chattisgarh Electricity Board (CEB).
MPEB further stated that the assets and liabilities had not be divided yet and hence it would be inappropriate to direct MPEB alone to discharge the liabilities. CEB contended that amounts collected as security deposits were kept as fixed deposits in scheduled banks by MPEB and therefore the latter was solely responsible to pay back.
Referring to the payment of security deposits to the two power companies, the bench said what would be the rights available under the re-organisation act was really of no consequence so far as the present petitions were concerned.
"The undisputed position is that the applicants are entitled to the refund of the security deposits made. They cannot be made to suffer because the two states and two boards do not appear to have reached an agreement so far as sharing of assets and liabilities and other connected aspects are concerned," Justice Pasayat, writing the judgement for the bench, said.
Bureau Report
A bench comprising Justice Shivaraj V Patil and Justice Arijit Pasayat rejected the plea of the MPEB that after the state re-organisation act, the original board had been succeeded by MPEB and Chattisgarh Electricity Board (CEB).
MPEB further stated that the assets and liabilities had not be divided yet and hence it would be inappropriate to direct MPEB alone to discharge the liabilities. CEB contended that amounts collected as security deposits were kept as fixed deposits in scheduled banks by MPEB and therefore the latter was solely responsible to pay back.
Referring to the payment of security deposits to the two power companies, the bench said what would be the rights available under the re-organisation act was really of no consequence so far as the present petitions were concerned.
"The undisputed position is that the applicants are entitled to the refund of the security deposits made. They cannot be made to suffer because the two states and two boards do not appear to have reached an agreement so far as sharing of assets and liabilities and other connected aspects are concerned," Justice Pasayat, writing the judgement for the bench, said.
Bureau Report