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2026 DAILYLAW 36584 (KAR)

MANGALORE ELECTRICITY SUPPLY COMPANY LTD v. KARNATAKA ELECTRICITY REGULATORY COMMISSION

WP/35866/2025 · 2026-08-17

Lalitha Kanneganti

body2026

Judgment text

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- 1 - HC-KAR CNR: KAHC010770842025 NC: 2026:KHC:43762 WP No. 35866 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 35866 OF 2025 (GM-KEB) BETWEEN: 1. MANGALORE ELECTRICITY SUPPLY COMPANY LTD., A GOVERNMENT COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICER, MESCOM BHAVANA BEJAI, KAVOOR CROSS ROAD, MANGALURU – 5750 04 (REPRESENTED BY ITS MANAGING DIRECTOR) 2. HUBLI ELECTRICITY SUPPLY COMPANY LIMITED A GOVERNMENT COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICE, NAVANAGAR, P.B ROAD, HUBBALI – 580 025. (REPRESENTED BY ITS MANAGING DIRECTOR) 3. GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED A GOVERNMENT COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICER, STATION ROAD, KALBURGI – 585 101 (REPRESENTED BY ITS MANAGING DIRECTOR) Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010770842025 NC: 2026:KHC:43762 WP No. 35866 of 2025 4. CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LIMITED A GOVERNMENT COMPANY INCORPORATED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT CORPORATE OFFICER, #29, VIJAYANAGARA, 2ND STAGE, HINKAL, MYSURU – 570 017 (REPRESENTED BY ITS MANAGING DIRECTOR) …PETITIONERS (BY SRI. SHAHBAAZ HUSAIN, ADVOCATE) AND: KARNATAKA ELECTRICITY REGULATORY COMMISSION A REGULATORY BODY ESTABLISHED UNDER SECTION 19 OF THE KARNATAKA ELECTRICITY REFORM ACT 1990 HAVING ITS OFFICE AT NO. 16C-1, MILLER TANK BED AREA, VASANTH NAGAR, BANGALORE – 560 052 (REPRESENTED BY ITS AUTHORIZED REPRESENTATIVE) …RESPONDENT THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SETTING ASIDE THE IMPUGNED ORDER DATED 28.03.25 (ANNEX-A) PASSED BY THE RESPONDENT, TO THE EXTENT CHALLENGED HEREIN. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR CNR: KAHC010770842025 NC: 2026:KHC:43762 WP No. 35866 of 2025 ORAL ORDER The present writ petition is filed seeking the following prayer: i. Issue a writ of certiorari or any other appropriate writ or direction, setting aside the impugned order dated 28.03.2025 (Annexure-A) passed by the Respondent, to the challenged herein; ii. Pass such other order as it may deem fit and proper, in the interest of justice and equity. 2. By virtue of the impugned order, the Karnataka Electricity Regulatory Commission (KERC) has approved the procedure for data collection, Scrutinization and verification of captive status of such generating plant, where captive generating plant and its captive users are located within the state of Karnataka. Further, the procedure shall be applicable for the energy consumed from the captive plant from financial year 2024-2025, for which monitoring of captive status will be done from Financial Year 2025-2026 and the commissioner deserves its right to notify the regulations in the matter of verification of capital status as and when required. 2.Learned counsel appearing for the petitioner submits that a Co-ordinate Bench of this Court in WP.No.13316/2025 connected with WP.No.14646/2025, WP.No.26022/2025 and WP.No.30328/2025 by order dated 12.06.2026 has allowed all the writ petitions, the order dated 28.03.2025 - 4 - HC-KAR CNR: KAHC010770842025 NC: 2026:KHC:43762 WP No. 35866 of 2025 passed by the KERC is quashed and directed the KERC to reconsider the matter and frame an appropriate procedure consistent with Rule 3 of the Electricity Rules, 2005 and law declared by the Apex Court in Dakshin-Gujarat's Judgment after following the due consultative process and principles of natural justice, till such consideration or coercive action shall be taken against the petitioners. 4. In the light of the said order, nothing remains to be considered in this writ petition, as the said order dated 28.03.2025 itself is set aside by the Co-ordinate Bench of this court. Hence, this Court is passing the following: ORDER 5. Accordingly, the writ petition is disposed of. 6. Pending I.As., in this petition shall stand closed. SD/- (LALITHA KANNEGANTI ) JUDGE TS List No.: 1 Sl No.: 5