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Supreme Court Stays Levy of Grid Support Charges on Captive Power Plants for FY 2025-26

JSA successfully represented Rain Cements Limited before the Supreme Court and secured an interim order dated May 22, 2025, staying the levy of Grid Support Charges on Captive Power Plants (CPPs) for the financial year 2025–26. This provides interim relief to CPPs in the state of Andhra Pradesh, which were burdened by the imposition of such charges.

By an order dated February 20, 2025, the Andhra Pradesh Electricity Regulatory Commission (APERC) had permitted the distribution licensees of Andhra Pradesh (AP Discoms) to levy Grid Support Charges on CPPs for FY 2025–26. This order was challenged before the Appellate Tribunal for Electricity (APTEL). However, by its judgment dated May 13, 2025, APTEL dismissed the appeal. A Civil Appeal was thereafter filed before the Supreme Court.

At the first hearing on May 22, 2025, the Supreme Court noted a prima facie illegality in the levy of Grid Support Charges on CPPs in Andhra Pradesh and accordingly directed that the levy be stayed, subject to the appellant depositing 50% of the claimed amount.

Notably, in earlier civil appeals filed by JSA on behalf of Sarda Metals & Alloys Ltd., the Supreme Court had also granted similar stay orders on October 21, 2024, and November 11, 2024, in relation to the levy of Grid Support Charges for the financial years 2022–23 and 2023–24.

This marks a paradigm shift in the Supreme Court’s approach to the issue of Grid Support Charges on CPPs. In previous cases involving similar levies by other states—such as Madhya Pradesh—the Supreme Court did not provide any interim relief.

Therefore, the interim order dated May 22, 2025, for the FY 2025–26 levy, along with the earlier orders dated October 21, 2024, and November 11, 2024, for FY 2022–23 and FY 2023–24 respectively, constitute a welcome, albeit temporary, relief for CPPs that were otherwise required to pay the entire amount of the charges. This development is also likely to assist other similarly placed CPPs across the sector.

Mr. P. Chidambaram, Senior Advocate, led the arguments, supported by Ms. Poonam Verma Sengupta (Lead Partner), Mr. Saunak Kumar Rajguru (Principal Associate), and Ms. Devisi Bhuwalka (Junior Associate) on behalf of Rain Cements.

The JSA disputes team comprised Lead Partner Poonam Verma Sengupta, Principal Associate Saunak Kumar Rajguru, and Junior Associate Devisi Bhuwalka.

 

Farid Karachiwala | Emerging Trends in Real Estate Investment

Watch the insightful discussion on the evolving landscape of real estate investment in India. Our Partner and Co-Chair of the Disputes Practice, Farid Karachiwala, engages in a compelling conversation with Ali Lokhandwala, Managing Director of Lokhandwala Infrastructure, exploring the next phase of property investment opportunities and challenges in the region.

In this exclusive video, filmed on the sidelines of the JSA Mint India Investment Summit, Farid and Ali dissect the key trends that are set to shape the future of real estate investment in India. Their expert analysis provides valuable perspectives for industry professionals keen on understanding market dynamics and strategic investment approaches.

Watch this enlightening exchange and gain a deeper understanding of India’s property market trajectory.

Divyam Agarwal | On Powers of Court to Modify Arbitral Awards

Our Partner, Divyam Agarwal, recently participated in a distinguished panel discussion on the television programme “Legally Speaking with Tarun Nangia.” The topic of this insightful discussion was “On Powers of Court to Modify Arbitral Awards,” an area of significant relevance and interest within the legal community in the wake of Constitution Bench decision in Gayatri Balasamy v. ISG Novasoft Technologies Ltd. This episode was broadcast on NewsX and is now available for viewing online.

Divyam was honoured to share the panel with:

  • Mr. Justice Sanjay Kishan Kaul, Former Judge, Supreme Court of India
  • Mr. Arvind Varma, Senior Advocate
  • Dr. Sanjeev Gemawat, Group General Counsel, Essar Group
  • Mr. Kartik Seth, Advocate

Mr. Tarun Nangia moderated the panel.

We invite you to watch this engaging discussion through the link provided below, where you will gain valuable insights into the nuances of arbitral awards and court powers.

JSA successfully represented its client before the Hon’ble Bombay High Court for suspension of the Look Out Circular issued by Serious Fraud Investigation Office and obtained interim relief to travel abroad

The Hon’ble Bombay High Court (“High Court”) vide its order dated April 29, 2025, granted interim relief to its client, who filed a Writ Petition challenging a Look Out Circular (“LOC”) barring him from leaving India. The LOC was issued at the behest of the Serious Fraud Investigation Office (“SFIO”) in connection with an ongoing investigation into the affairs of IL&FS. Earlier, JSA succeeded in securing permission for the client to travel overseas for two months, with the LOC suspended during that period, subject to compliance with conditions imposed by the High Court. In the subsequent application, the client sought a suspension of the LOC for 6 months to enable travel abroad for both business and personal reasons.

The SFIO, through its counsel, confirmed that the applicant had complied with the previous conditions imposed by the Court. Accordingly, the High Court, comprising of Hon’ble Ms. Justice R. M. Dere and Hon’ble Dr. Justice N. K. Gokhale, allowed the interim application on the following terms:

  • The LOC against the client stands suspended for six months, to facilitate overseas travel.
  • For every overseas trip during this duration, the client must furnish a full itinerary, including addresses and contact details, to SFIO at least 48 hours prior to departure, via electronic means and inform SFIO within 48 hours of returning to India after each trip.
  • The Immigration Authorities at all departure points are directed to permit the client to travel, even if their systems have not yet been updated, and regardless of whether SFIO has separately informed immigration.

Our disputes team comprised Lead Partner, Varghese Thomas, Partner, Hormuz Mehta and Senior Associate, Virgil Braganza.

JSA successfully defends UltraTech Cement Limited before the High Court of Karnataka in seeking stay on disconnection of electricity supply on the pretext of recovery of alleged electricity dues

JSA successfully defended UltraTech Cement Limited (“UltraTech”) before the Division Bench of the Hon’ble Karnataka High Court against the Distribution Licensee’s Writ Appeal, in effect, securing stay on recovery of alleged electricity dues and disconnection of electricity supply by the Distribution Licensee.

The dispute emanated because, after 18 years of the operation of UltraTech’s Bulk Terminal (cement packing unit) as an ‘Industrial’ Unit, Mangalore Electricity Supply Company Limited (“MESCOM”) i.e., the Distribution Licensee, issued a Demand Notice alleging ‘Commercial Use’ and demanded UltraTech to pay the differential of ‘Commercial’ and ‘Industrial’ tariff retrospectively. In absence of such payment, MESCOM threatened to disconnect electricity supply at UltraTech’s Bulk Terminal.

UltraTech filed a Writ Petition before the Ld. Single Judge, Hon’ble High Court of Karnataka seeking the Demand Notice to be quashed. JSA represented UltraTech. UltraTech inter alia contended that all along UltraTech’s Bulk Terminal was billed under ‘Industrial’ tariff category, there being NO change in circumstances, it was not open for MESCOM to unilaterally and retrospectively raise a demand for the differential of ‘Commercial’ and ‘Industrial’ tariff from UltraTech. Alongside highlighting the fact that Bulk Terminal has NOT been specifically categorized under any particular tariff category by the Karnataka Electricity Regulatory Commission, UltraTech also highlighted the Disconnection Notice is time barred in view of Section 56(2) of the Electricity Act, 2003.

By Order dated 08.08.2024, Ld. Single Judge, Hon’ble High Court of Karnataka passed a favourable interlocutory order in favour of UltraTech, directing MESCOM not to take any coercive action against UltraTech either qua the Demand Notice (i.e., recovery of the differential of ‘Commercial’ and ‘Industrial’ tariff) or Disconnection Notice.

Aggrieved by Order dated 08.08.2024 passed by the Ld. Single Judge, Hon’ble High Court of Karnataka, MESCOM filed a Writ Appeal before the Ld. Division Bench, Hon’ble High Court of Karnataka. JSA represented UltraTech and successfully defended UltraTech.

By Judgment dated 04.04.2025, Ld. Division Bench, Hon’ble High Court of Karnataka dismissed MESCOM’s Writ Appeal and did NOT interfere the interlocutory order passed in UltraTech’s favour by Ld. Single Judge, Hon’ble High Court of Karnataka. By virtue of this Judgment, the direction to MESCOM not to take any coercive action against UltraTech either qua the Demand Notice (i.e., recovery of the differential of ‘Commercial’ and ‘Industrial’ tariff) or Disconnection Notice remains intact.

The interlocutory order by the Ld. Single Judge, as upheld by the Division Bench provides necessary relief to UltraTech, an industrial consumer, alongside keeping in check the whimsical unilateral and arbitrary decision making by Distribution Licensee (here MESCOM).

Our disputes team comprised Lead Partner Poonam Verma Sengupta, Partner, Prasanth V.G., Principal Associate, Saunak Kumar Rajguru and Associate, Pradyumn Amit Sharma.