Case Note & Summary
The petitioners, K.P. Power Private Limited and its director, filed a writ petition in 2003 before the Bombay High Court seeking a mandamus to compel the State of Maharashtra and its agencies—Maharashtra Energy Development Agency (MEDA), Maharashtra State Electricity Distribution Company Limited, and others—to grant final approval/NOC along with benefits under the Package Scheme of Incentives, 1993 for their 30 MW Wind Mill Power Generation Project. The State had formulated a policy in 1998 to promote non-conventional energy sources, offering incentives such as sales tax benefits, capital subsidy, and entry tax reimbursement. A German company, M/s. GNEE, showed interest, and a Letter of Intent dated 29 January 1999 was executed for a 100 MW project. M/s. GNEE entered into a Memorandum of Understanding with King Prawns Limited, an Indian company holding suitable land at Palghar. The procedure required applying for an NOC between 15 and 31 December 1999, but M/s. GNEE alleged unawareness and missed the deadline. King Prawns Limited applied in January 2000 but was informed that the State had stopped issuing NOCs after 31 December 1999. The State issued a resolution in October 1999 modifying the sales tax benefit modality and another in July 2001 defining when a project would be considered in the pipeline. Consequently, King Prawns Limited incorporated the first petitioner as a subsidiary on 21 May 2001 to pursue the project. The petitioners contended that they were entitled to the NOC and incentives. The writ petition was admitted on 16 December 2003; no interim relief was granted, but the petitioners were allowed to commission the project. The hearing was expedited and finally heard on 3 August 2018, with judgment reserved. The Bombay High Court, through a division bench, pronounced its decision on 21 December 2018.
Issue of Consideration
Whether the petitioners are entitled to a writ of mandamus directing the State to grant final approval/NOC and incentives under the Package Scheme of Incentives, 1993 for their 30 MW Wind Mill Power Generation Project?
Law Points
- Writ of mandamus cannot be issued to enforce a contract
- delay and laches
- policy decisions not to be interfered with unless arbitrary
- no estoppel against statute
Case Details
2018 LawText (BOM) (12) 108
Writ Petition No. 2329 of 2003
S.C. Dharmadhikari, Bharati H. Dangre
Mr. Iqbal Chagla, Mr. Fredun De'Vitre, Mr. Naval Agarwal, Mr. Jehan Mehta, Ms. Pooja Kothari, Mr. Prakhar Parekh, Ms. Sanaea Laskari for petitioners; Mr. Anil Sakhare, Mr. Yashwant Dhanegave, Mr. Rohan Mirpury, Ms. Geeta Shastri, Ms. Jyoti Chavan for respondents 1 and 2; Mr. Kiran Gandhi for respondent 3
K.P. Power Private Limited and Ajay S. Dhumal
State of Maharashtra, Maharashtra Energy Development Agency, Maharashtra State Electricity Distribution Company Limited, Under Secretary Department of Industries, Under Secretary Department of Energy
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition under Article 226 of the Constitution of India seeking a writ of mandamus for grant of final approval/NOC and incentives under the Package Scheme of Incentives, 1993 for a 30 MW Wind Mill Power Generation Project.
Remedy Sought
Petitioner no.1 seeks a writ of mandamus directing the respondent authorities to grant final approval/NOC and benefits/incentives under the Package Scheme of Incentives, 1993.
Filing Reason
The respondent authorities failed to grant final approval/NOC and associated benefits under the 1993 Policy despite the petitioner fulfilling conditions and being a successor-in-interest to the original project proponent, M/s. GNEE, which had been issued a Letter of Intent but missed the NOC application deadline due to alleged non-communication of procedure.
Issues
Whether the petitioners are entitled to a writ of mandamus directing the State to grant final approval/NOC and incentives under the Package Scheme of Incentives, 1993 for their 30 MW Wind Mill Power Generation Project?
Judgment Excerpts
The petitioner, a Private Limited Company, incorporated under the Companies Act, 1956 and having its registered office at Bombay along with the petitioner no.2, a shareholder and Director of Petitioner no.1 instituted the present writ petition in the year 2003 seeking the following relief.
The State of Maharashtra formulated a policy to promote generation of energy through nonconventional sources to supplement the ever increasing demand of electricity in the State.
The LOI was executed between the Governor of Maharashtra exercising the executive power of the Government of Maharashtra and M/s.GNEE which was in form of an agreement where the State Government agreed to provide the Company with detailed information concerning the sites including the wind data...
The petitioner no.1 came to be incorporated as the subsidiary of King Prawns Limited on 21 st May 2001 pursuant to Memorandum of Understanding entered between King Prawns Limited and M/s.GNEE.
Procedural History
Writ Petition No. 2329 of 2003 filed in 2003. Admitted on 16 December 2003, with no interim relief granted but petitioners permitted to commission the project. Hearing expedited. Heard on 3 August 2018 and reserved for judgment. Pronounced on 21 December 2018.
Acts & Sections
- Electricity (Supply) Act, 1948: 5
- Companies Act, 1956:
