- 1 - NC: 2025:KHC:15085 WP No. 48985 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 48985 OF 2016 (GM-RES) BETWEEN: M/S UNITED SURYA ENERY LTD., HAVING ITS REGISTERED AT NO.18A/19, DODDANEKUNDI INDUSTRIAL AREA, MAHADEVAPURA POST, BENGALURU-560 048 REPRESENTED BY ITS AUTHORIZED SIGNATORY SRI KIRAN YALAMANCHII AGED 31 YEARS …PETITIONER (BY SRI. ABHINAV R.,ADVOCATE) AND: 1. THE GOVERNMENT OF KARNATAKA DEPARTMENT OF ENERGY II FLOOR, VIKASA SOUDHA, BENGALURU-560 001 REPRESENTED BY ITS CHIEF-SECRETARY 2. BENGALURU ELECTRICITY SUPPLY COMPANY (BESCOM) HAVING ITS REGISTERED OFFICE K.R. CIRCLE, BENGALURU-560 001 REPRESENTED BY ITS MANAGING DIRECTOR 3. THE DHALAXMI BANK LTD. HAVING ITS BRANCH OFFICE NO.13, KASTURBA ROAD, BENGALURU-560 001 Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:15085 WP No. 48985 of 2016 REPRESENTED BY ITS AUTHORIZED BY ITS BRANCH HEAD. 4. THE KARNATAKA RENEWABLE ENERGY DEVELOPMENT LTD., NO.39, "SHANTIGRUHA", BHARATH SCOUTS & GUIDES BUILDING, PALACE ROAD, BEHIND MAHARANI COLLEGE, BENGALURU-560 001 REPRESENTED BY ITS MANAGING DIRECTOR 5. THE KARNATAKA POWER TRANSMISSION CORPORATION LTD., HAVING ITS REGISTERED OFFICE AT K.G. ROAD, BENGALURU-560 009 REPRESENTED BY ITS MANAGING DIRECTOR …RESPONDENTS (BY SMT. NAVYA SHEKAR., GA FOR R1; SMT. SUMANA NAGANAND., ADVOCATE FOR R2 & R5; SRI. V.B. RAVISHANKAR., ADVOCATE FOR R3; SRI. SAMARTH KASHYAP., ADVOCATE FOR R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN A NATURE OF CERTIORARI QUASHING THE OFFICIAL MEMORANDUM DATED 31.08.2016 AT ANNEX-H TO W.P. AND IN THAT REGARD DIRECT THE R-2 NOT TO INVOKE THE BANK GUARANTEE BEARING NIL DATED 10.03.2016 AT ANNEX-K AND ETC. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ - 3 - NC: 2025:KHC:15085 WP No. 48985 of 2016 ORAL ORDER 1. The petitioner is before this Court seeking for the following reliefs: i. To issue a writ of certiorari quashing the Official Memorandum bearing No. GM(ELE)/PP/BESCOM/DGM-1/AGM-1/ BC-39/F- 2299(A1)/14/15/5999-6003 dated 31.09.2016 at Annexure-H to the writ petition and in that regard, direct the R2 not to invoke the Bank Guarantee bearing Nil, dated 10.03.2016 at Annexure-K. ii. Issue a writ of Mandamus directing the Respondents to extend the time period for completion of the project (COD) by considering the Annexure-J & J1 both dated 03.09.201, among their representations. iii. Grand Costs. iv. Such other reliefs as this Hon’ble Court bearing fit to grant in the facts and circumstances and in the interest of justice and equity. 2. The grievance of the petitioner is that the request made by the petitioner for extension of time to set up a solar photovoltaic tank has not been considered and without considering the same damages have been imposed on the petitioner and it is in that background that the aforesaid reliefs have been sought for. - 4 - NC: 2025:KHC:15085 WP No. 48985 of 2016 3. The learned counsel for Respondent No.2 would submit that Respondent No.2 has no power or authority to extend the time and any dispute insofar as the Power Purchase Agreement is concerned is governed by Clause 18.2 and Clause 18.3. The parties not having arrived at an amicable resolution, the dispute can be only resolved in terms of 18.3.1 requiring the matter to be referred to the KERC. He submits that in a similar matter in the case of Helene Power Pvt Ltd., vs. State of Karnataka1, this Court had permitted the petitioner to raise the dispute before the KERC in accordance with the Electricity Act, 2003 and as such, it would be for the petitioner to also do the same in the present matter. 4. A perusal of the judgment of the Coordinate Bench indicates that the dispute is more or less identical and reference has been placed to the dispute resolution clause in the Power Purchase Agreement. 1 WP No.36107/2014 dtd 21.10.2019 - 5 - NC: 2025:KHC:15085 WP No. 48985 of 2016 In the present matter, the Power Purchase Agreement has contained a Clause 18.2, which provides for amicable settlement and dispute resolution. The matter having been pending from the year 2016, the parties before filing of the petition and even thereafter have not been able to arrive at any amicable resolution. 5. On inquiry, they once again submit that no such amicable resolution has been arrived at. Additionally, learned Counsel for Respondent No.2 submits that Respondent No.2 cannot discuss any amicable resolution since the extension of time sought for by the petitioner cannot be granted by Respondent No.2 but can only be granted by KERC. 6. In that view of the matter, there would be no purpose served by once again referring the parties to arrive at amicable resolution or for mediation. In that view of the matter, I pass the following: - 6 - NC: 2025:KHC:15085 WP No. 48985 of 2016 ORDER i) The Writ petition is partly allowed. ii) The petitioner is granted six weeks’ time from date of receipt of a certified copy of this order to exercise its right under clause 18.3.1 of the Power Purchase Agreement dated 21.5.2014 produced at Annexure-A to the petition and seek for resolution of the dispute in accordance with the applicable law and seek such other reliefs as may be permissible under law. iii) The interim order, which has been granted by this Court, restraining BESCOM from encashing the bank guarantee as also for recovering damages is extended by a period of eight weeks from today. Sd/- (SURAJ GOVINDARAJ) JUDGE PRS List No.: 1 Sl No.: 30