Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI WRIT PETITION NO. 7803 OF 2025 (GM-KEB) C/W WRIT PETITION NO. 9933 OF 2025 (GM-KEB)
IN WP No. 7803/2025 BETWEEN:
NSL SUGARS LIMITED CIN U15429KA1999PLC02612 A PUBLIC LIMITED COMPANY INCORPORATED AND REGISTERED UNDER COMPANIES ACT 2013 HAVING ITS REGISTERED OFFICE AT NO.60/1, SECOND CROSS, RESIDENCY ROAD, BENGALURU - 560 025
ALSO HAVING OFFICE AT NSL ICON, 8-2-684/2/A, ROAD NO. 12, BANJARA HILLS, HYDERABAD - 560 034 REPRESENTED BY ITS AUTHORIZED SIGNATORY …PETITIONER (BY SRI SHRIDHAR PRABHU, ADVOCATE) AND:
1. STATE OF KARNATAKA DEPARTMENT OF ENERGY, ROOM NO. 236, 2ND FLOOR, VIKASA SOUDHA, DR. B.R. AMBEDKAR STREET,
Digitally signed by GEETHAKUMARI PARLATTAYA S Location: High Court of Karnataka
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
BANGALORE - 560 001. REPRESENTED BY ITS ADDITIONAL CHIEF SECRETARY
2. KARNATAKA ELECTRICITY REGULATORY COMMISSION (KERC), STATE ELECTRICITY REGULATORY COMMISSION ESTABLISHED UNDER SECTION 19 OF THE KER ACT, 1999 NO.16C-1, MILLER TANK BED AREA, VASANTHANAGAR BENGALURU - 560 052 REPRESENTED BY ITS CHAIRMAN
3. BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED (BESCOM), CIN U04010KA2002SGC030438 A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICE, BESCOM, K.R. CIRCLE, BENGALURU - 560 001 REPRESENTED BY ITS MANAGING DIRECTOR
4. CHAMUNDESHWARI ELECTRICITY COMPANY LIMITED (CESC), CIN U40109KA2004SGC035177
A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CESC MYSORE, CORPORATE OFFICE, NO.29, VIJAYANAGARA 2ND STAGE, HINKAL, MYSURU - 570 017 REPRESENTED BY ITS MANAGING DIRECTOR
5. GULBARGA ELECTRICITY COMPANY LIMITED (GESCOM), CIN U04010KA2002SGC030436
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT STATION ROAD, REVANSIDDESHWAR COLONY, KHUBA PLOT, BRHAMPUR, KALABURAGI - 585 102 REPRESENTED BY ITS MANAGING DIRECTOR
6. HUBLI ELECTRICITY COMPANY LIMITED (HESCOM) CIN U31401KA2002SGC030437 A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICE, HESCOM, NAVANAGAR, P.B ROAD, HUBBALLI - 580 025 REPRESENTED BY ITS MANAGING DIRECTOR
7.
MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED (MESCOM), CIN U40109KA2002SGC030425 A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT 1ST FLOOR, MESCOM BHAVAN, CORPORATE OFFICE, KAVOOR CROSS ROAD, BEJAI, MANGALURU - 575 004. REPRESENTED BY ITS MANAGING DIRECTOR
8. CENTRAL ELECTRICITY REGULATORY COMMISSION, A STATUTORY BODY FUNCTIONING UNDER SECTION 76 OF THE ELECTRICITY ACT 2003 3RD AND 4TH FLOOR, CHANDERLOK BUILDING, 36, JANPATH, NEW DELHI- 110 001 REPRESENTED BY ITS CHAIRMAN
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
…RESPONDENTS (BY SMT.VAHEEDA, AGA FOR R1 SRI S. SRIRANGA, SENIOR ADVOCATE FOR SMT.SUMANA NAGANAND, ADVOCATE FOR R3 TO R7 SRI B.N. PRAKASH, ADVOCATE FOR R2 SMT.SADANA DESAI, ADVOCATE FOR R8)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE GOVERNMENT ORDER NO. ENERGY 82 PPT 203, BENGALURU, DATED 16TH OCTOBER 2023, PUBLISHED IN THE GAZETTE DATED 20TH OCTOBER 2023, ALONG WITH CORRIGENDUM DATED 20TH NOVEMBER 2023 PUBLISHED IN THE GAZETTE DATED 1ST DECEMBER 2023, ISSUED BY THE 1ST RESPONDENT PURPORTEDLY UNDER SECTION 11 (1) OF THE ELECTRICITY ACT, 2003 IS ARBITRARY, ILLEGAL, MALA FIDE AND COLOURABLE EXERCISE OF POWER AND ULTRA VIRES TO THE PROVISIONS OF ELECTRICITY ACT, 2003, AS FAR AS INTER STATE OPEN ACCESS GENERATORS ARE CONCERNED. IN WRIT PETITION NO. 9933/2025 BETWEEN:
1. NSL SUGARS LIMITED CIN U15429KA1999PLC02612 A PUBLIC LIMITED COMPANY INCORPORATED AND REGISTERED UNDER COMPANIES ACT 2013 HAVING ITS REGISTERED OFFICE AT NO.60/1, SECOND CROSS, RESIDENCY ROAD, BENGALURU 560 025 ALSO HAVING OFFICE AT NSL ICON, 8-2-684/2/A, ROAD NO. 12, BANJARA HILLS, HYDERABAD - 560 034 REPRESENTED BY ITS SENIOR MANAGER
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MR. AMARNATH H.V.
2. NSL SUGARS (TUNGABHADRA) LIMITED, CIN U40102KA1983PLC058128 A PUBLIC LIMITED COMPANY INCORPORATED AND REGISTERED UNDER COMPANIES ACT 2013 HAVING ITS REGISTERED OFFICE AT FACTORY PREMISES, NSL SUGARS (TUNGABHADRA) LIMITED, SIRUGUPPA TALUK, SIRUGUPPA, DESANUR BELLARY, KARNATAKA - 583 140
ALSO HAVING OFFICE AT NSL ICON, 8-2-684/2/A, ROAD NO. 12, BANJARA HILLS, HYDERABAD - 560 034 REPRESENTED BY ITS SENIOR MANAGER MR.
AMARNATH H.V. ...PETITIONERS (BY SRI SHRIDHAR PRABHU, ADVOCATE) AND:
1. STATE OF KARNATAKA DEPARTMENT OF ENERGY, ROOM NO. 236, 2ND FLOOR, VIKASA SOUDHA, DR. B.R. AMBEDKAR STREET, BANGALORE - 560 001. 2. KARNATAKA ELECTRICITY REGULATORY COMMISSION (KERC), STATE ELECTRICITY REGULATORY COMMISSION ESTABLISHED UNDER SECTION 19 OF THE KER ACT, 1999 NO.16C-1, MILLER TANK BED AREA, VASANTHANAGAR BENGALURU - 560 052 REPRESENTED BY ITS CHAIRMAN
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3. BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED (BESCOM), CIN U04010KA2002SGC030438 A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICE, BESCOM, K.R. CIRCLE, BENGALURU 560 001 REPRESENTED BY ITS MANAGING DIRECTOR
4. CHAMUNDESHWARI ELECTRICITY COMPANY LIMITED (CESC), CIN U40109KA2004SGC035177 A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CESC MYSORE, CORPORATE OFFICE, NO.29, VIJAYANAGARA 2ND STAGE, HINKAL, MYSURU - 570 017 REPRESENTED BY ITS MANAGING DIRECTOR
5. GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED (GESCOM) CIN: U04010KA2002SGC030436 A COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT 1956 HAING ITS REGISTERED OFFICE AT STATION ROAD, REVANSIDDESHWAR COLONY KHUBA POST BRHAMPUR KALABURAGI - 585 102 REPRESENTED BY ITS MANAGING DIRECTOR
6. HUBLI ELECTRICITY SUPPLY COMPANY LIMITED CIN: U31401KA2002SGC030437 A COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
COPORTATE OFFICE HESCOM NAVANAGAR P.B.ROAD, HUBBALLI - 580 025 REP BY ITS MANAGING DIRECTOR
7. MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED (MESCOM) CIN: U40109KA2002SGC030425 A COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT 1ST FLOOR MESCOM BHAVAN COPORATE OFFICE KAVOOR CROSS ROAD BEJAI,MANGALURU - 575 004. REP BY ITS MANAGING DIRECTOR
8.
CENTRAL ELECTRICITY REGULATORY COMMISSION A STATUTORY BODY FUNCTIONING UNDER SECTION 76 OF THE ELECTRICITY ACT 2003 6TH , 7TH AND 8TH FLOORS TOWER B WORLD TRADE CENTRE NAUROJI NAGAR NEW DELHI -110 029 REPRESENTED BY ITS CHAIRMAN
...RESPONDENTS (BY SMT.VAHEEDA, AGA FOR R1 SRI S. SRIRANGA, SENIOR ADVOCATE FOR SMT.SUMANA NAGANAND, ADVOCATE FOR R3 TO R7)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE GOVERNMENT ORDER NO. ENERGY 82 PPT 203, BENGALURU DATED 16TH OCTOBER 2023, PUBLISHED IN THE GAZETTE DATED 20TH OCTOBER 2023, ALONG WITH CORRIGENDUM DATED 20TH NOVEMBER 2023 PUBLISHED IN THE GAZETTE DATED 1ST DECEMBER 2023, ISSUED BY THE 1ST RESPONDENT PURPORTEDLY UNDER SECTION 11 (1) OF
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
THE ELECTRICITY ACT, 2003 IS ARBITRARY, ILLEGAL, MALAFIDE AND COLOURABLE EXERCISE OF POWER AND ULTRA VIRES TO THE PROVISIONS OF ELECTRICITY ACT, 2003, AS FAR AS INTER STATE OPEN ACCESS GENERATORS ARE CONCERNED. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI
ORAL ORDER
WP no.9933/2025 is filed for following reliefs : A. Declare that the Government Order No.ENERGY 82 PPT 203, BENGALURU, dated 16th October 2023, published in the Gazette dated 20th October 2023, along with Corrigendum dated 20th November 2023 published in the Gazette dated 1st December 2023, issued by the 1st Respondent purportedly under Section 11 (1) of the Electricity Act, 2003 is arbitrary, illegal, mala fide and colourable exercise of power and ultra vires to the provisions of Electricity Act, 2003, as far as Inter- State Open Access generators are concerned. A true copy of Impugned Order Government Order No. ENERGY 82 PPT 203, BENGALURU, dated 16th October 2023, published in the Gazette dated 20th October 2023, along with Corrigendum dated 20th November 2023 published in the Gazette dated 1st December 2023, issued by the 1st Respondent purportedly under Section 11 (1) of the Electricity Act, 2003 is produced at ANNEXURE - A to A1 (Collectively); B. Issue a Writ of Certiorari, or any other appropriate, writ, order direction, declaring Order dated 26th November 2024 passed by 2nd
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Respondent KERC in OP No. 29, 30, 31, 32 & 33 of 2023, whereby net rate of INR 4.75 per unit payable to the generators who have supplied power under Section 11(1) of the Electricity Act, 2003, is arbitrary, discriminatory, without jurisdiction and illegal, and consequently quash the same. A true copy of Order dated 26th November 2024 passed by 2nd Respondent KERC in OP No. 29, 30, 31, 32 & 33 of 2023, whereby net rate of INR 4.75 per unit payable to the generators who have supplied power under Section 11(1) of the Electricity Act, 2003 is produced at ANNEXURE – B. C. Consequentially, issue a Writ of Certiorari or any appropriate writ, order or direction quashing demand notices issued by the Respondent ESCOMS, (more fully described in the SCHEDULE 1, hereunder), demanding the Petitioners to pay the alleged differential amount, in compliance of the impugned Order dated 26th November 2024.
True copies of the demand notices issued by the Respondent ESCOMS, (more fully described in the SCHEDULE-I hereunder), demanding the Petitioners to pay the alleged differential amount issued in compliance of the impugned Order dated 26th November 2024 are produced herewith as ANNEXURE C to C5 (Collectively); D. Issue a Writ of Mandamus or any appropriate writ,
order or direction to Respondent ESCOMs not to issue any further demand notice in terms of the
Order dated 26th November 2024 passed by 2nd Respondent KERC in OP No. 29, 30, 31, 32 & 33 of 2023. vide Annexure-B. E. Direct the 8th Respondent Central Electricity Regulatory Commission (CERC) to determine the damages for illegally appropriating power meant for Inter- State Open Access during the period from 16th October 2023 to 31st May 2024 with carrying cost at 1% per month etc. 2. While, WP no.7803/2025 filed for these reliefs:
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HC-KAR NC: 2025:KHC:34158 WP No. 7803 of 2025 C/W WP No. 9933 of 2025
A. Declare that the Government Order No.ENERGY 82 PPT 203, BENGALURU, dated 16th October 2023, published in the Gazette dated 20th October 2023, along with Corrigendum dated 20th November 2023 published in the Gazette dated 1st December 2023, issued by the 1st Respondent purportedly under Section 11 (1) of the Electricity Act, 2003 is arbitrary, illegal, mala fide and colourable exercise of power and ultra vires to the provisions of Electricity Act, 2003, as far as Inter-State Open Access generators are concerned. A true copy of Impugned Order Government Order No. ENERGY 82 PPT 203, BENGALURU, dated 16th October 2023, published in the Gazette dated 20th October 2023, along with Corrigendum dated 20th November 2023 published in the Gazette dated 1st December 2023, issued by the 1st Respondent purportedly under Section 11 (1) of the Electricity Act, 2003 is produced at ANNEXURE - A to A1 (Collectively); B. Issue a Writ of Certiorari, or any other appropriate, writ, order direction, declaring Order dated 26th November 2024 passed by 2nd Respondent KERC in OP No. 29, 30, 31, 32 & 33 of 2023, whereby net rate of INR 4.75 per unit payable to the generators who have supplied power under Section 11(1) of the Electricity Act, 2003, is arbitrary, discriminatory, without jurisdiction and illegal, and consequently quash the same.
A true copy of Order dated 26th November 2024 passed by 2nd Respondent KERC in OP No. 29, 30, 31, 32 & 33 of 2023, whereby net rate of INR 4.75 per unit payable to the generators who have supplied power under Section 11(1) of the Electricity Act, 2003 is produced at ANNEXURE – B. C. Consequentially, issue a Writ of Certiorari or any appropriate writ, order or direction quashing demand notices issued by the Respondent ESCOMS, (more fully described in the SCHEDULE 1, hereunder), demanding the Petitioners to pay the alleged differential amount aggregating to INR 9,33,205.00 [INR Nine Lakhs, Thirty – Three Thousand, Two Hundred and Five only]. True
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copies of the demand notices issued by the Respondent ESCOMS, (more fully described in the SCHEDULE-I hereunder), demanding the Petitioners to pay the alleged differential amount aggregating to INR 9,33,205.00 [INR Nine Lakhs, Thirty – Three Thousand, Two Hundred and Five only] are produced herewith as ANNEXURE C to C4 (Collectively); D. Issue a Writ of Mandamus or any appropriate writ, order or direction to Respondent ESCOMs not to issue any further demand notice in terms of the Order dated 26th November 2024 passed by 2nd Respondent KERC in OP No. 29, 30, 31, 32 & 33 of 2023. E. Direct the 8th Respondent Central Electricity Regulatory Commission (CERC) to determine the damages for illegally appropriating power meant for Inter-State Open Access during the period from 16th October 2023 to 31st May 2024 with carrying cost at 1% per month etc. 3. On previous date of hearing, learned counsel for respondents in WP no.9933/2025, had submitted that Writ Petition would not be tenable as prayer sought herein namely, to declare Government
Order dated 16.10.2023 and Corrigendum dated 20.11.2023 issued thereto, at Annexures-A and A1 respectively, were challenged by petitioner earlier in WP no.26833/2023 and WP no.24998/2023.
4. Along with said prayer, petitioner had challenged
order dated 26.11.2024 passed by Karnataka Electricity Regulatory Commission (‘KERC’ for short) under Section 11 (2)
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of the Electricity Act, 2003 (‘Act’ for short) at Annexure-B and for consequential prayers for declaring demand notices at Annexures-C to C5 as illegal and for direction to respondents not to issue any further demands.
5. It was submitted, WP no.26833/2023 and WP no.24998/2023 were allowed along with connected WP nos.24239/2023 on 11.03.2024, quashing Government order at Annexures-A and A1 respectively. However, said order was challenged in WAs no.529/2024 and 526/2024 and on 25.04.2024, Division Bench in WA no.526/2024 had granted an interim order of stay of order passed by learned Single Judge. Thereafter, KERC had passed order dated 26.11.2024 under Section 11 (2) of Act as per Annexure-B herein.
6. It was therefore submitted that first prayer sought herein was seized before Division Bench in Appeal, while insofar as other prayers, petitioner was having efficacious alternative remedy of Appeal under Section 111 of Act before Appellate Tribunal for Electricity (‘APTEL’ for short). Therefore, a separate Writ petition as filed herein would not be tenable. On said grounds, sought for dismissal of Writ Petition.
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7. In reply, learned counsel for petitioners submitted, when interim order granted on 09.04.2025, was after hearing respondent and with observation that Writ Petition would be maintainable, which would nullify
submissions. Further, application would be barred by internal res judicata, relying upon following decisions: i. Nayeem Noor Mohamed and Another v. Nazim Noor Mohamed and Another [(2025)SCC OnLine Kar 10624]; ii. Barkat Ali and Another v. Badrinarain [(2008)4 SCC 615]; iii. Ajay Mohan and Others v. H.N. Rai and Others [(2007) SCC OnLine SC 1518]; iv. S. Ramachandra Rao v. S.Nagabhusana Rao and Others [(2022) SCC OnLine SC 1460]; v. Sulthan Said Ibrahim v. Prakasan and Others [(2025) SCC OnLine SC 1218]; and vi. D.N. Mangala v. Sunanda and Others W.P. no.25246/2017.
8. It was submitted, before passing of order at Annexure-B, petitioner had appraised KERC about order passed by learned Single Judge in WP no.26833/2023 and WP no.24998/2023 and connected matters, which were in challenge and pendency of appeals before Division Bench. It was submitted, orders at Annexures-A and A1 were challenged in separate writ petition, as respondents had sought to deny
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open access to petitioner and order passed under Section 11 (2) of Act was consequential.
9. It was submitted, since question, who would be Competent Authority in case of inter-State generators i.e., whether KERC or CERC, was under consideration before Division Bench, and claiming that interim order of stay of order passed by learned Single Judge, would revive Regulations and empower KERC, order was passed under Section 11 (2) of Act. Contending that impugned order would provide fresh and separate cause of action, it was challenged in this Writ Petition and therefore, it would be tenable.
10. Heard learned counsel on both sides.
11. At outset, position in law regarding applicability of principles of res judicata internally i.e., between two stages of same proceedings is undeniable. That apart, perusal of interim
order dated 09.04.2025 would prima facie indicate that respondents were heard before passing it. However, any observation or finding at interim stage would not come in way of re-examining same at stage of final disposal. It was precisely on this aspect, matter was heard.
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12. Admittedly, subject matter of first prayer herein, namely, challenge against Government order dated 16.10.2023 and Corrigendum thereto dated 26.11.2023 were challenged in WP no.26833/2023 and WP no.24998/2023, wherein they were quashed. But said order is challenged by respondents in WA no.529/2024 along with connected appeals.
13. It is further noted that in earlier Writ Petition, petitioners had also challenged order passed under Section 11 (1) of Act. As contended by respondents, apparently on ground that interim order of stay of order passed by learned Single Judge granted in Appeal by Division Bench would revive Regulations and empower KERC to determine compensation, led to passing of order dated 26.11.2024 at Annexure-B herein. Admittedly, challenge against order at Annexure-B, is only on ground than that KERC did not have jurisdiction insofar as inter-State power generators. If it were not so, order at Annexure-B would be appealable. On that count also Writ Petition would not be tenable. However, such is not case herein.
14. Petitioner's challenge against orders at Annexures-A and A1 in this petition as well as before Division Bench is on
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ground that KERC did not have jurisdiction over Inter-State Power Generators and Regulations framed would be illegal is seized before Division Bench in pending Writ Appeal and order at Annexure-B is only consequential order, cannot be questioned by a separate Writ Petition. Under above circumstances, even last ditch effort by
learned counsel for petitioners for tagging of these Writ Petitions with Writ Appeals would also not be tenable. Wherefore, this Writ Petition is dismissed, without need for issuance of notice to other respondents. W.P. no.7803/2025 : Since this Writ Petition is similar to WP no.9933/2025, it is also disposed of accordingly.
15. At this stage, learned counsel for petitioner submits that petitioner would file application before Division Bench in pending Writ Appeals and interim arrangement/interim order granted herein may be continued until then.
16. Though learned Senior counsel for respondents would oppose same on ground that said request is not based on
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any apprehensions, considering fact that petitioner was beneficiary of interim arrangement/interim
order during pendency of these petitions and petitioner submits that application would be filed, interim protection could be extended for limited period. Hence, interim arrangement/interim order granted in these petitions is extended for a period of two weeks from today. Sd/- (RAVI V HOSMANI) JUDGE
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