Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Damodar Valley Corporation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Damodar Valley Corporation Act, 1948: s.38 – Computationof tariff – Benefit of interest on capital – Claim for benefit unders.38 on the ground that though interest was given on the loan portionand the return on equity was also ensured on the normative equityportion still over and above the same, appellant was entitled to thebenefit of interest on capital on the whole amount as provided ins.38 – Appellate Tribunal held that DVC Act provided for intereston capital which is contributed by the participating Governmentsand that under the Act, if there is any deficit in the capital contributedby the participating Governments, it is to be made good by takingloan on behalf of the participating Governments and said debtwould attract interest – The average interest rate of the repaymentpayable is to be applied on a 50:50 normative debt capital whichmeans that out of the aggregate equity including reserves, equityconsidering the normative debt ratio of 50:50 would be eligible forreturn on equity as specified in the Regulations and the excess ofequity if any over the equity earning ratio of 14% is to be consideredas interest bearing debt – On the basis of remand, the Commissionworked out the debt equity ratio as directed by the Appellate Tribunal– Thus, appellant was already given return on equity in terms ofTariff Regulation in respect of capital on the basis of debt equityratio which was fixed by Appellate Tribunal on a ratio which becamefinal between the parties – Electricity Act, 2003.Damodar Valley Corporation Act, 1948: Claim for treatingcumulative depreciation as repayment of loan and thereby reducingthe notional loan component in the capital cost – The said plea wasnot taken in the first round of litigation in the appeal before theappellate authority – First order of appellate tribunal having becomefinal, the matter cannot be reopened in the appeal from the orderpassed pursuant to remand. |
Judge | Hon'ble Mr. Justice K.M. Joseph |
Neutral Citation | 2018 INSC 1127 |
Petitioner | Damodar Valley Corporation |
Respondent | Central Electricity Regulatory Commission |
SCR | [2018] 14 S.C.R. 433 |
Judgement Date | 2018-12-03 |
Case Number | 4881 |
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