Kriti Agrawal
The District Commercial Court in Shillong has stayed the National Thermal Power Corporation’s (NTPC) plan to control power supply in Meghalaya beginning May 11.
Despite the lockdown in the East Khasi Hills district, the Court held a two-hour physical hearing on Friday and granted a stay of the NTPC notice.
The Court was presided over by NA Khan and was physically attended by Advocate General Amit Kumar, senior advocate Sibasis Sen, and state government advocate Arkin Kharwanlang.
The NTPC was represented in Court by its lawyers.
The NTPC had previously informed Meghalaya Energy Corporation Limited (MeECL) of the impending power regulation due to its disputes with the state government.
On April 15, the NTPC issued a demand for Rs 416.72 crore, of which Rs 294 crore was demanded to be paid in April.
The NTPC also informed the MeECL that if the specified sum was not paid, the MeECL’s Letter of Credit for Rs 18 crore (approximately) would be invoked and forfeited immediately.
According to Sangma, the state government believes that none of the sums requested by NTPC are due and payable to it, and that the continuation of the PPA is not warranted.
On April 22, the Court heard the case and ordered the status quo in favor of the state government, averting the invocation of the Letter of Credit.
The NTPC preferred an appeal for the stay order to be vacated; however, the stay was not vacated and continues to this day.
The NTPC, in a letter dated May 4, informed MeECL that, since dues had not been paid, power would be controlled in the state beginning May 11.
On May 7, the Meghalaya government immediately petitioned the commercial Court for a stay of the NTPC’s decision to control power supply in Meghalaya.