Power tariff dispute: SC asks GITAM to deposit ₹15 Cr with TGSPDCL within 4 weeks
The court emphasized that the deposit order was issued without prejudice to the rights and contentions of either side.
By Newsmeter Network
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New Delhi: The Supreme Court has directed Gandhi Institute of Technology and Management (GITAM) to deposit Rs 15 crore with the Southern Telangana Power Distribution Company Limited (TGSPDCL) within four weeks.
The court was hearing a case regarding a dispute over outstanding electricity dues.
On Monday, the court clarified that the interim direction was intended to safeguard the rights of both parties.
Interim relief considering educational status
A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe observed that GITAM is an educational institution and therefore granted limited interim relief while the matter remains under consideration.
The court emphasized that the deposit order was issued without prejudice to the rights and contentions of either side.
Background of the dispute
The dispute arose after TGSPDCL issued notices to GITAM, seeking recovery of Rs 118 crore in pending electricity dues allegedly payable by VBC Ferro Alloys, a company said to be associated with GITAM. The power utility warned that the electricity supply would be disconnected if the dues were not cleared.
Challenging the notices, GITAM approached the Telangana High Court. The High Court’s Division Bench had earlier directed the institution to pay Rs 54 crore as an interim arrangement until the main dispute is resolved.
GITAM moves Supreme Court
Aggrieved by the High Court’s order dated February 5, GITAM filed a Special Leave Petition before the Supreme Court. During the hearing, the institution contended that the power utility had issued the demand notice without properly considering its explanation.
Taking these submissions into account, the Supreme Court reduced the interim deposit amount to Rs 15 crore, payable within four weeks.
Direction to expedite High Court proceedings
The apex court also directed the Telangana High Court to expedite the hearing and disposal of the main writ petition pending before it. With this, the Supreme Court disposed of the Special Leave Petition and connected applications.
