- 1 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.13036 OF 2023 (GM-KEB) BETWEEN: 1. BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED (BESCOM) IS A PUBLIC LIMITED CO., INCORPORATED BY THE GOVERNMENT OF KARNATAKA, HAVING ITS REGISTERED OFFICE AT K.R. CIRCLE, NRUPATHUNGA ROAD, NUNEGUNDLAPALLI, AMBEDKAR VEEDHI, BENGALURU, KARNATAKA-560001, THROUGH ITS AUTHORIZED REPRESENTATIVE, M. UMAMAHESWARI, GENERAL MANAGER (ELEC) AT BESCOM. 2. HUBLI ELECTRICITY SUPPLY COMPANY LIMITED (HESCOM) A PUBLIC LIMITED CO., INCORPORATED BY THE GOVERNMENT OF KARNATAKA, HAVING ITS REGISTERED OFFICE AT P.B. ROAD, NAVANAGAR, HUBALLI-580025, KARNATAKA, INDIA. THROUGH ITS AUTHORIZED REPRESENTATIVE DR. SIDDU HULLOLI, GENERAL MANAGER (ADMIN & HRD) HESCOM. 3. MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED (MESCOM) A PUBLIC LIMITED CO., INCORPORATED BY THE GOVERNMENT OF KARNATAKA, HAVING ITS REGISTERED OFFICE AT 11TH FLLOR, MESCOM BHAVAN CORPORATED OFFICE, MESCOM, KAVOOR CROSS ROAD, Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 BEJAI, MANGALORE-575004, KARNATAKA, INDIA. THROUGH ITS AUTHORIZED REPRESENTATIVE, H.R. DINESH, SUPERINTENDING ENGINEER, (ELECTRICITY & COMMERCIAL). 4. GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED (GESCOM) A PUBLIC LIMITED CO., INCORPORATED BY THE GOVERNMENT OF KARNATAKA, HAVING ITS REGISTERED OFFICE AT STALION ROAD, REVANSIDDESHWAR COLONY, KHUBA PLOT, BRHAMPUR, KALABURGI-585102, KARNATAKA, INDIA. THROUGH ITS AUTHORIZED REPRESENTATIVE, SRI VENKATESHA PRASAD .R, CHIEF ENGINEER, (ELECTRICITY & OPERATIONS), GESCOM. 5. CHAMUNDESHWARI ELECTRICITY SUPPLY CORPORATION LTD., A PUBLIC LIMITED CO., INCORPORATED BY THE GOVERNMENT OF KARNATAKA, HAVING ITS REGISTERED OFFICE AT 29, VIJAYANAGARA, 2ND STAGE, HINKAL, MYSURU-570017, THROUGH ITS AUTHORIZED REPRESENTATIVE K.M. SWAROOPARANI, GENERAL MANAGER, (COMMERCIAL) CESE. 6. POWER COMPANY OF KARNATAKA LIMITED, A PUBLIC LIMITED COMPANY, HAVING ITS REGISTERED OFFICE AT 5TH FLOOR, KPTCL BUILDING, KAVERI BHAVAN, BENGALURU-560009, THROUGH ITS AUTHORIZED REPRESENTATIVE BY D. KODANDA PANI / ADDITIONAL DIRECTOR. …PETITIONERS (BY SMT. SWETA RANJAN, ADVOCATE AND SRI PRASHANT KUMAR, ADVOCATE FOR P-1 TO P-5; SRI SHAHBAAZ HUSAIN, ADVOCATE FOR P-6) - 3 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 AND: 1. MINISTRY OF POWER REP. BY ITS SECRETARY, SHARAM SHAKTI BHAWAN, RAFI MARG, NEW DELHI-110001. 2. M/S. N.L.C. INDIA LIMITED, (FORMERLY NEYVELI LIGNITE CORPORATION LTD.,), REP. BY ITS CHARIMAN-CUM-MANAGER DIRECTOR, OFFICE AT NO.135, EVR PERIYAR HIGH ROAD, KILPAUK, CHENNAI-600010, TAMIL NADU, INDIA. 3. THE CENTRAL ELECTRICITY REGULATORY COMMISSION REP. BY ITS SECRETARY, OFFICE AT 3RD & 4TH FLOOR, CHANDRALOK BUILDING, ROAD NO.36, JANPATH, NEW DELHI-110001. 4. POWER FINANCE CORPORATION LTD., (PFC) ENTITY OPERATING THE PRAAPTI REP. BY ITS CHAIRMAN AND MANAGING DIRECTOR, HAVING ITS REGISTERED OFFICE AT URJANIDHI, 1, BARAKHAMBA LANE, CONNAUGHT PLACE, NEW DELHI-110001. GOVT. OF INDIA UNDERTAKING UNDER THE OWNERSHIP OF MINISTRY, 1986. 5. THE GRID CONTROLLER OF INDIA LIMITED, (AS NATIONAL LOAD DESPATCH CENTRE, REP. BY ITS CHAIRMAN AND MANAGING DIRECTOR (FORMERLY KNOWN AS POWER SYSTEM OPERATION CORPORATION OF INDIA), OFFICE AT#B-9 (1ST FLOOR), QUTAB INSTITUTIONAL AREA, KATEWARIA SARAI, NEW DELHI-110016. - 4 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 6. THE SOUTHERN REGIONAL LOAD DISPATCH CENTRE, (ESTABLISHED UNDER SECTION 27 OF THE ELECTRICITY ACT, 2003), REP. BY ITS EXECUTIVE DIRECTOR, HAVING ITS OFFICER AT #51 MADHAVA NAGAR, GANDHI NAGAR, BENGALURU, KARNATAKA-560009. …RESPONDENTS (BY SRI MADHUKAR M. DESHPANDE, ADVOCATE FOR R-1; SRI K.G. RAGHAVAN, SENIOR COUNSEL FOR SRI RAVI RAGHAVAN, ADVOCATE FOR R-2; NOTICES TO R-3 & R-5 ARE DISPENSED WITH V/O DTD. 09.03.2026; NOTICES TO R-4 & R-6 ARE SERVED AND UNREPRESENTED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT RULE 7 OF ELECTRICITY (LATE PAYMENT SURCHARGE) RULES, 2022 IS ULTRA VIRES THE ACT AND THE CONSTITUTION, ON ACCOUNT OF IT BEING ARBITRARY AND VIOLATIVE OF ARTICLE 14 AND 19 OF THE CONSTITUTION; DIRECT MORE PARTICULAR ONE IN THE NATURE OF WRIT OF MANDAMUS REQUIRING THE R-1 TO DIRECT THE R-4 TO REMOVE THE R-2’S INVOICES WITH RESPECT TO THE CLAIM RAISED AS DETAILED BELOW (i) DEBIT NOTES DATED 26/12/2022 AND 90100297 AND 901200264 AND 90100310 ISSUED THROUGHLr. NO.NLCIL/GM/COMML./BESCOM-VSVS DEBIT NOTE/F-1215/2022- 626 AND DATED 26/12/2022 TO PETITIONER NO.1 ATTACHED HEREWITH AS ANNEXURE-G1 AND ETC. THIS PETITION COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE K.S. HEMALEKHA - 5 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 ORAL ORDER The present writ petition is filed by the Electricity Supply Companies in the State of Karnataka seeking the following reliefs: “a) Declare that Rule 7 of Electricity (Late Payment Surcharge) Rules, 2022, is ultra vires the Act and the Constitution, on account of it being arbitrary and violative of Article 14 and 19 of the Constitution; or b) Issue an appropriate Writ, Order or direction more particular one in the nature of Writ of Mandamus, requiring the Respondent No.1 to direct the Respondent No.4 to remove the Respondent No.2's invoices with respect to the claim raised, as detailed below: (i) debit notes dated 26.12.2022 and 901000297 and 901200264 and 901000310 issued throughLr. No. NLCIL/GM/ Comml./ BESCOM - VSVS Debit Note/ F-1215/2022 - 626 and dated 26.12.2022 to Petitioner No.1 attached herewith as Annexure-G1, (ii) debit notes dated 27.12.2022 and numbered 901200272, 901000324, 901200280, 901000337, 901300205 and 90067165 issued through Lr. No. - 6 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 NLCIL/ GM/ Comml./ BESCOM - VSVS Debit Note/ F–1215/2022 627 and dated 27.12.2022 to Petitioner No.1 attached herewith and marked as Annexure-G2, (iii) debit notes dated 26.12.2022 and numbered 901000312, 901200266 and 901000299, issued through Lr. No. NLCIL/GM/ Comml./ HESCOM - VSVS Debit Note/ F - 1215/2022 - 632 and dated 26.12.2022 to Petitioner No.2, attached herewith as Annexures-G3, (iv) debit notes dated 27.12.2022 and numbered 90067167, 90300207, 901000339, 901200282, 901000326, and 901200274; issued through Lr. No. NLCIL/ GM/ Comml./ HESCOM - VSVS Debit Note/ F-1215/2022 - 632 and dated 27.12.2022 to Petitioner No.2, attached herewith as Annexures- G4, (v) debit notes dated 26.12.2022 and numbered 901000314, 901200268, and 901000301, issued through Lr. No. NLCIL/ GM/ Comml./ GESCOM - VSVS Debit Note/ F - 1215/2022 - 634 and dated 26.12.2022 to Petitioner No.4, attached herewith as Annexure-G5; (vi) debit notes dated 27.12.2022 and numbered 901200276, 901000328, 901200284, 901000341, - 7 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 901300209, and 90067169, issued through Lr. No.NLCIL/GM/ Comml./ GESCOM VSVS Debit Note/ F - 1215/2022 635 and dated 27.12.2022, issued to Petitioner No.4, attached herewith as Annexure-G6; and (vii) debit notes dated 26.12.2022 and numbered 901000300, 901200267, and 901000313; and debit notes dated 27.12.2022 and numbered 901200283, 901000340, 901000327, 901200275 and 90067168, issued to Petitioner No.5, attached herewith as Annexure-G7; and consequently direct Respondent Nos.1, 5 and 6 not to regulate the supply of power to the Petitioners under Section 7 of the Electricity (Late Payment Surcharge) Rules, 2022, during the pendency of the proceedings in 135/ MP/ 2023 pending before Respondent No.3, Ld. Central Electricity Regulatory Commission; and c) Pass such other orders or directions, as deemed appropriate by this Hon'ble Court.” 2. Heard Sri Prashant Kumar, learned counsel for the petitioners and Sri K.G. Raghavan, learned Senior Counsel appearing respondent No.2. - 8 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 3. Learned Senior Counsel for respondent No.2 submits that the Madras High Court in the case of Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) Vs. The Ministry of Power and Others1 (TANGEDCO), had relegated similar disputes to be adjudicated under Section 79(1)(f) of the Electricity Act, 2003 read with Clauses 1.7 and 10 of the CERC Regulations 2001 and 2004, holding that the said mechanism provides an effective statutory remedy. 4. It is further submitted that the said judgment was carried in appeal in W.A.No.3699/2024, which came to be disposed of on 09.04.2025, wherein it was held that once the generating company institutes proceedings before the Central Electricity Regulatory Corporation (CERC), the distribution company would be at liberty to defend the claim before the said forum. 5. Learned Senior counsel submits that the Kerala High Court, in the case of Kerala State Electricity Board 1 W.P.(C).No.7519/2023 D.D 11.09.2024 - 9 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 Ltd., Vs. Union of India and Others2 (Kerala State Electricity Board Ltd.), dealing with the similar dispute involving respondent No.2 herein, recorded the submission that the generating company would approach the CERC for adjudication, and the impugned demands would not be enforced until the CERC renders its decisions. On recording the said submission, the writ petition was disposed of. 6. In the present case also learned Senior counsel appearing for respondent No.2 submits that until a decision is taken by the CERC on the alternative statutory remedy, the demands raised in Annexures-G1 to G7 shall not be enforced. 7. The said submission made on behalf of respondent No.2 is taken on record. 8. Learned counsel for the petitioner submits that the issue involved in the present writ petition is squarely covered by the decisions of the Madras High Court and the 2 W.P(C).No.12620/2023 D.D 12.11.2025 - 10 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 Kerala High Court in similar circumstances, wherein the parties were relegated to avail the alternative statutory remedy before the CERC. 9. Having regard to the submissions made and taking note of the fact that similarly placed parties have been relegated to avail the statutory remedy before the CERC, this Court is of the view that the grievance of the petitioner stands adequately addressed. Accordingly, this Court pass the following: ORDER i. The writ petition is disposed of in terms of the order in TANGEDCO and Kerala State Electricity Board Ltd. ii. Liberty is reserved to respondent No.2 to approach the CERC for adjudication of the dispute. - 11 - HC-KAR NC: 2026:KHC:14048 WP No. 13036 of 2023 iii. Until the decision is taken by the CERC, the demands raised at Annexures-G1 to G7 shall not be enforced. Sd/- ______________________ JUSTICE K.S. HEMALEKHA AT List No.: 1 Sl No.: 2