Telangana HC Directs Gitam University To Pay Rs 54 Crores for Power Supply
Court modifies single judge order in electricity dues dispute
Hyderabad: The Telangana High Court has directed the Gandhi Institute of Technology and Management (GITAM) University, Hyderabad to deposit Rs 54 crore within three weeks, representing 50 per cent of the outstanding electricity dues, as a precondition for restoration of its power supply.
A division bench comprising Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar issued the condition while partly allowing a writ appeal filed by the Southern Power Distribution Company of Telangana Limited (TGSPDCL, souther discom).
On December 19 last, the southern discom had disconnected one of the four service connections available to the university on the ground that around `108 crore in electricity dues were un paid by VBC Ferro Alloys Ltd. The company runs from the University premises and both are governed by the same management.
When the university challenged the action, a single judge bench had directed the TGSPDCL to restore the power supply without imposing any condition.
Challenging the same, the southern discom preferred an appeal. N. Sridhar Reddy, standing counsel for TGSPDCL, argued that the single judge ought not to have granted interim relief to the university without directing payment of any portion of the outstanding dues. He submitted that the dues had accumulated over a long period and that it was standard practice to insist on payment of at least 50 per cent of arrears as a condition for reconnection.
It was also contended that the single judge had relied upon submissions made through a memo without affording the appellants an opportunity to respond, rendering the order unsustainable in law.
GITAM University argued that the chairman and secretary of the university had only 2.17 per cent of the shareholding of VBC Ferro Alloys Ltd. Further, they submitted that the university was ready to give an undertaking to pay the entire amount if the relationship between the university and VBC Ferro Alloys Ltd was established.
The division bench, after considering the submissions, held that unconditional restoration of power supply despite huge outstanding dues was not justified. While not completely setting aside the relief granted to the university, the bench modified the order by directing GITAM University to deposit `54 crore, being 50 per cent of the outstanding dues, within three weeks.
