Case Law Details
Indsil Hydro Power And Manganese Limited Vs State of Kerala (Supreme Court Of India)
In M/s. INDSIL Hydro Power and Manganese Ltd. v. State of Kerala and Ors. [CIVIL APPEAL NOS.9845-9846 OF 2016 dated September 06, 2021], the current appeal has been filed against the judgment and Order dated April 03, 2014 passed by the Kerala High Court allowing Writ Appeal Nos.1345 and 1355 of 2013 preferred by State of Kerala against M/s. INDSIL Hydro Power and Manganese Ltd (the Appellant).
The Government of India on December 07, 1990 framed a policy vide G.O.(MS)No.23/90/PD (“the Policy”) allowing private agencies and public undertakings to set up hydel schemes for generation of electricity at their own cost. The Appellant in pursuance to the same established a 21 Mega Watts (“MW”) and 12 MW plant for exclusive use of Captive Generating Station (“CGS”) for its industrial units. Clause 14 of the Policy provided that royalty would be charged for controlled releasing of water used for generating electricity in the CGS. The Kerala Government and Kerala State Electricity Board (“KSEB”) directed the Appellant to pay royalty for use of water along with taxes and duties. An order dated July 03, 2004 was issued by the Government that in terms of Clause 19 of INDSIL Agreement, the Appellant would be liable to pay royalty and cost of controlled release of water.
The order was challenged in writ petitions vide order dated February 15, 2013 and April 03, 2013 which were held in favour of Appellant holding the action on part of the Government to be discriminatory. Thereafter, on writ appeal filed against those orders, Order dated April 3, 2014 set aside the previous orders by directing the Government to levy royalty assessing the quantity of water used for generation of electricity and pass fresh orders accordingly. This order dated April 03, 2014 has thereby been challenged by the Appellants in the current writ petition.
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