Law of limitation on claims of past tariff dues and the role of NRPC under the Electricity Act

In a recent decision, the Appellate Tribunal has upheld the contentions of the Punjab distribution licensee and held that the claims of a Rajasthan entity relating to the year 2003 to be time barred, when the petition was filed only in 2019. While the issue may be simple in ordinary civil jurisdiction, the decisions assumes importance as it deals with claims made for past tariff payments and also the fact that the the claims have been raised continuously in the meetings of the Northern Regional Power Committee (NRPC).

The Appellate Tribunal has held that the NRPC has no adjudicatory powers or statutory powers in relation to disputes between the parties. The role of the NRPC is only for the constituents to agree on various aspects governing the grid operations, as provided for in Section 29(4). Consequently, any issues raised or pending in the agenda of NRPC shall have no impact on the disputes between the parties, the cause of action or the limitation period thereof. The proceeding before the NRPC would not constitute a civil proceeding. Therefore by raising issues before the NRPC, the party cannot be said to have exercised due diligence in prosecuting a civil proceeding for the purposes of applying Section 14 of the Limitation Act and seeking exclusion of the time spent for the purposes of limitation.

The judgment may be accessed at https://aptel.gov.in/sites/default/files/Jud2023/A358of22_300523.pdf