Damodar Valley Corporation Act, 1948: s.38 – Computation of tariff – Benefit of interest on capital – Claim for benefit under s.38 on the ground that though interest was given on the loan portion and the return on equity was also ensured on the normative equity portion still over and above the same, appellant was entitled to the benefit of interest on capital on the whole amount as provided in s.38 – Appellate Tribunal held that DVC Act provided for interest on capital which is contributed by the participating Governments and that under the Act, if there is any deficit in the capital contributed by the participating Governments, it is to be made good by taking loan on behalf of the participating Governments and said debt would attract interest – The average interest rate of the repayment payable is to be applied on a 50:50 normative debt capital which means that out of the aggregate equity including reserves, equity considering the normative debt ratio of 50:50 would be eligible for return on equity as specified in the Regulations and the excess of equity if any over the equity earning ratio of 14% is to be considered as interest bearing debt – On the basis of remand, the Commission worked out the debt equity ratio as directed by the Appellate Tribunal – Thus, appellant was already given return on equity in terms of Tariff Regulation in respect of capital on the basis of debt equity ratio which was fixed by Appellate Tribunal on a ratio which became final between the parties – Electricity Act, 2003.
Damodar Valley Corporation Act, 1948: Claim for treating cumulative depreciation as repayment of loan and thereby reducing the notional loan component in the capital cost – The said plea was not taken in the first round of litigation in the appeal before the appellate authority – First order of appellate tribunal having become final, the matter cannot be reopened in the appeal from the order passed pursuant to remand.
Bhaskar Shrachi Alloys Limited & Ors. v. Damodar Valley Corporation & Ors (2018) 8 SCC 281 ; Delhi Electricity Regulatory Commission v. BSES Yamuna Power Limited & Others (2007) 3 SCC 33 : [2007] 2 SCR 747 – referred to
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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