The Punjab & Haryana High Court has stayed the operation of a notice dated January 15, 2025, issued to M/s Northstar Solar Power Pvt. Ltd. by the Punjab State Power Corp. Ltd. (PSPCL), pending further hearing.
Northstar Solar Power Pvt. Ltd., challenged the penalty order of PSPCL that sought to recover alleged excess benefits claimed by Northstar under accelerated depreciation provisions in its project arrangements, which was subsequently upheld by the Punjab State Electricity Regulatory Commission (PSERC). The petitioners, relied on the Supreme Court’s decision in Gujarat Urja Vikas Nigam Ltd. v. EMCO Ltd., (2016) 11 SCC 182, and on a PSERC order dated December 5, 2024, in Chandigarh Distillers & Bottlers Ltd. v. Punjab State Power Corporation Ltd., Petition No. 6 of 2023.
On the other hand, Counsel for PSPCL submitted that the petitioners had an alternative remedy of filing an appeal under Section 111 of the Electricity Act, 2003.
The Court issued notice of motion to the respondents. Respondent No.2 (State of Punjab), accepted notice through its counsel and Respondent Nos.3 and 4 appeared through their counsel and filed their Memoranda of Appearance, which were taken on record.
The Court directed that Respondent No.1 (PSERC) be formally served for January 27, 2026.
The Court further directed that the responses to be filed before the next hearing, while staying the operation of the impugned penalty notice by PSPCL till then.
Appearances
Mr. Chetan Mittal, Senior Advocate with Mr. Nitish Gupta, Advocate and Mr. Varun Issar, Advocate for the petitioners.
Mr. Siddharth Sandhu, Assistant Advocate General, Punjab on behalf of respondent No.2.
Mr. Bhanu Pratap Singh, Advocate on behalf of PSPCL-respondent No.3
Mr. A.D.S. Jattana, Advocate on behalf of respondent No.4
