High Court Karnataka High Court

Sparta Power Projects Pvt Ltd vs State Of Karnataka on 5 March, 2009

Karnataka High Court
Sparta Power Projects Pvt Ltd vs State Of Karnataka on 5 March, 2009
Author: P.D.Dinakaran(Cj) And K.L.Manjunath
3

JUDGMENT

Pmsent: agypeal is filed by the .

challenging the legality anQ,p.Qrrefltné;$5 ”

disnuasal cf their sxrrziiz’-._ gget-i.it’.i;_m

:~’£a.1624?/2005 dated 2e.3′.’2.e_sa.”‘-.. V

2, It is the gas; mi fihat 33*”

apgellant :5 a cefizgggng under the
gprovisions V_.thef v_§_’%-_?a~’t’_-,”L_.,195f_i; 2″
aggzellant 011 an
app1icgt;:;;; zd~ . V re;-spancjent , State

czf Ka;&z;ana3;a ‘ dated 1o*5..199’_: had

acccrcied’ ‘Vssi:§n.– set up 5 1-335 12-$3.:-;.3’. I-Iyqisal

Prajgéfit 21634;: ._ VvR:3<§:a+1ba,nd;a, Raichur Diatrict

3311:3111: _t?}e:.-. ;:1;;*v:i.ew Qf :~ia.raya.z1a.§1..1z: Qam area.

1:53.) the ayyeilants, K-2 511:! net

-zany: grszzsgreass 3,51 zesjpect 52:7 the gxzegeet,

“f'<.;-er "§; .§-tr.'-.2z.'~:i»:.x:i, ca: "3' yeazsa in the ciraum.-stbazmasg

Kafinataka fignewable Energy Qwalagmnt

W

4

Ltd.; by its iettex daaea .g£;i§;ée0§

zeczzsrzuzeenaafeci :§”::;1:_~ caz2,n of

acmmardaa; tea R””2§ Based. Ztbti’ “‘*i:1}e’. 5;a.me Va;-.T.s:rL§«;aw»f’ A’

cause nmtzixga was igsuecj. ti’; Vi’-:*.__–2–_1:,¢ s¥’:1Qw. Qai.:.;_1s’e a$
:9 why permsggcn graj.¥2*::e4i1–_ ta iJ;V’:sTxfi’;>1:V:;c3. “”::st>t
cancelled age t<:wi~._ nus-1r1¥1;qn;;1¢=é:;rg.entat1€:r:"v of the

pzzojaci: $31 thin perimi.

According 3tfi ;th§W¥§§p%iigg§s? R-2 dgg net
zgesyomd “3.Vs{§s;ei*§~:j*:-…;§;*e..’e,,}.%’gV:”V.§1<::i:3.,<::ze.~, thezrefizare, by
an azitdgér-A';:§.;f;;§'é–;§fi.§£31'1'§;—;?.{$!)é"~§§ma§.$s:Lan acczzar-sieti ta
R-2 fié_é¢: fig g nfififiiygéal scheme was cancelled

and _the.e "~«..Goxr5ez:nz§s2f1%i; Graig: was also gazetted.

…,A.,_A'E'1:fs.§§:~e5'_§t¢r, a#3.m.~;p1:=:je<::t was allatteci to the 1"'

V fizzy the Qcvermment vicie its crzrcier

1f2i£3t}§ and based. 9:; the Govexznment

4:3;mg,;t ;!g'é' apz;:e;3.zs.:1t: swat; sufficient mcmegr 2.3.3

with the pragfect, Sinae Gaverrzmexzt

i?a.:i.le¢:3. ta execute the agreezzaant in terms of the

Govt. Ordaer; appellants filed. 3. wxit; gsetition

RV

Z}

in W? §o.1358é!2004 ta issue a writ q£ m§n&gm3s

directing the Govemumnt to L"

agrefit which ;3eti’%;ji.o£i”‘ ._ 7 :£.s«s’ T

consideratiazz. Snihen the

cf 3; sucimn, on 18.4 éi
shots»: cause Energy
Beyarmaent , §.i,;’::act’,’i,;:1g ta show
cause as t5′; allcttad 11::

than V as the Gevnarnmani;

wag; 9&1′ ” “t:’::«au_:”_”€’5:*:% zzstere ahancaa has ts.)
he g:;’;:§e;t1″ t::,$ the gawer §z:jec1′..:.

Appellagztafi-. $:¢:;f¥:}–. a_ ééxjéizaiied z:®ly. QR §§§,2£3t3.5

V. _f3§;»§é:;,1.;;a;1t:9_s ‘reeaived a Goviarzmaent Qrder

eir2;i’;:ici::-;5:2;’:;::f5;:g:V4″%.f$%1r:~. allotmgnt max in their favmzr by

ta aomtzirzue its ymject. On an

it is learnt by the agwllaxxts that

A”:TEZ¢;§i’i*”k;>3.*e mziaf Minister of Karnataka had

“uj”‘e£tended. mimg to R-2 on 1e&2.2a05 an the

re@e5t mack by R–2 without kncwing that the

8

extending tie to R-2 13 ane M fii:fi§fit

gurisdiation. Accmrémng to ni§y W%héfi”*

permzssicn accexded ta Rzihéa-heen,cénce1led;

Governmant sheuld net vhav&_ $hteit§in$§”Jtfie

agglicaticn cf 2:2 fer g$ten3iwa’Q£}uWfiimé bg

canceling the §erg1$3£¢nE §¢goréd~~$o the
agyeilants. Agna£d£§g”§Q5§@%; ;§7$~2 had been
aggrieved by lfige <%%§§r _$£ u§g§§§ilat1an; it
shsuld ha@éf{§figi1§g§@fl:fi;g' Qrder of the
$gve::u:;a::t._ ';:§§}'*§:, writ getiticn.
Th$:af§xg} h§r§é§g§§§% fih1s caurt to interfieze

with the fifidings Q: fiha Learned single Judge*

Ag §;_ we ha§e_haaf§ the ieagned fidyoaabe General

an&g;fiefi§@u§5él aypearing fer Rw3; R-4 and R-5

V ' am alga Sfiigflanjunda Raddy, Seniar Agyecate fox

' "xEe2, 'E42 by pzofimcimg several dgcumanta

_éQntafids that thaugh a sexieus attamgt was made

':=byfR~2 ta establish the gragectj an agcount af

n¢n-ciearanae af the papexs by different wings

W

%.z

'2.

;…i

the gzxraject, 1:: is always Q9311
Govemmeni: to mnsiaer issue agplicatxéfé ‘
apgellants £0: a mfifemng I-pT3j..sm$A5
we axe GE the View i:,ha.’;

be Zrzreatasi as aggriavad §4«g§:*:sa§::::z1s”a.:s’i:,1*:re,-VVA£>V£’é:i;se3i* of ”

the Gmvamnaent has no}: ‘ V’ A’ A ingagerzmntaa
and that even net; 20%;’;

executed in _,.f3′;’:v3″¢*_-‘*.1i:1:’ It is
also :19: appellants had.

filed, seeking 3. writ <33"

V Gavernafiiz; to execute

the: agz:ea z3s:e_;:1°’::v§ -_§’:.*.;£;s.::1t-isrzia it is clean that the

“‘.f§e1;*’z!;;*3’§’«:.:;2_:§’:’ _¢:>z1i:’rz:z;2;.vZ*;ae:: not aver; finalized in

7,fa.vm2r ?’,.1?i€_=:_ apgpellantag nhereitsre aypelianta

I’§$.€d “I”‘;Qt’ éfiensisierad as aggriavaci pars-tans.

T Aitzéx meaning the Leaznad czmr2$a.i. £03: all

_t12g- agtrartiefi anal mm yarmcuiarly leazned
»3s::i:;r<:::.%.:a°t;:a Samara; we are cn$tra.inad ta maize

” aertazn ahgamations in regaxd to the manner in

(K/.

13

whimh the éemlcgzmnt gnrcrjects in S11;a.’i’:§é

Kamataka are being mzglamenteeal V’

Kaxrnataiga axe: sufifering fmx ~””‘:«:a.:2.t–‘_< ::z;1j:?"'?~I.;2i;,~aVs}m_j:,fA,VL'

fargztexs are net getting §m~2'e.z5 ;,f'.'i:.-1:A' c1.i11;ix,8Vati;"§:2_,""V

imiustries are being Q;QSe:'-§§"~~.Qn §=::§;g:»u;i'f.:_: 'zzsfinw
gugplg cef continuous ;avQ¥m:;:* ' -sé'm¢ra'.i' ' znsggatmrs
camzlrfi. rgoiz get; 119 v:}«V:;{1'fc'11,:.a:2,tr3;.e5 rm.
Karnataka Qnig. – i _ vVfic':;:;'$ a.va.1:;3;m§.1it;,r
of suifizziegfi; :;V§Zé.:s5;r::"';:v3rQ12g2zi; ta our
nctiae .f;§":a1:TA: = is facing acute
s1'z<9_1.*:'I.:=a;,g,.iV_§vv–,',.f;.9:':' his purchasing pa-war

£393: w;he.v§*–.._ MStat¢a§5A'._V 31$ 53 alas: fzrmn yrivate

V.-";"::f1ve:s§*i:§:r§r;s§LA'1~:he é.T£i'¢.=:..___ur:ce:a of the state, It is also

broflghifi notice that Govermuent is

purchausiiig Végcrwer at higher rate frcaa grivate

:y«é;’rs and £39111 o1;1;–$:m.e State and

___”éu9g,§lying power at subsgciized. rate 39 the

6%

15>

prnj eat an aacount sf n,::»n–cleaz*an:e_; L-V’ ”

perm;L$319n fzctxn varieua e::1@ari:zzaent$_,__ ‘E?; .$hQ’¢.*$’~

how the gzzapars are Raving :i.n’ «–§3ta€i;=.=.;

snail man in resgect of; an i;gz:g§x:s.1:i;a.z;i;.’..A:.=s§1;®’;gé;zi’j,¢$Va§;:;§i.:S are g.=end;;,r:g befcre the

$eéx§..13g Qerznission ta establish wind,

pzrmgects. Khan the natvaral

1ce$c:51i::r:e.§$’ “.lfn at pm-text is available

tgn gléntgi :3 fear the Gasvezuzztezzt to make use

” iiatural reaaurces and mxggaly pawer ta

–.’.I;.:1’24é: §.r;:1u51;;~1es and farmers and domestic

“»§1″:i:c 3_:>ose§, Even the mhildren and students who

are praparlng thazzsalves ior exaznizzacicns axe

T9”,-

2?

has to be sugaglied taking irate ccsnsiderafzion
that investaxs are generating 9-owe: by..”~.\.ifs;i_;2zg

the natural re-sourema of the State.

1.3. Conaiaarixag the a.ct1t&e: $ifi’>r~ta;g_’e~:

in order tn generate grove; ai;4’Va.1i’-._ea.rl»:;;e.A$*t ‘§¢:3,:i;21.?:”‘

mi timsee, the sthe
apfiiicaticns undez: +:g;z:g;i.’é’ oz by
way of green chanrgel” . 1:’; the
instant casa,» taken two
decades =£–2 from va,m;.a::>u:3
dggaztmggis fig Qét fig £hé”§§a3ect; it all the
pJ:::>jac,ts ‘é;f”.9;z.*:e 1312.15, we age afraid

that the aévegnmgnt may no; he in a yasitxan to

ss1;§gij§’* ;;»::;w~s._.–.r t,::$”é:hé: industries; dsaznesticz and

figv §1a¢f £¢§” agr1gu1tuxa1 puxpose. Befgre

‘ cons”;-§$:er1_2;1g’r:’i__9sihe ayglicatimns if ail clearances

‘-«.__ a.1;fe amtaizzed; and if a. tim limit is stigulated

_.é.2锣:_$>li$h the pmject; than it would be 12.32

fihé intereat oi larger public and in

&/.

18

::i:evel.::apmem: sf the State Resmzrces car 3;.t1″–V

alternative if the investors am ‘

czaugl-ate the pmjeat under 4:E turn key fiystm, than

bound 1.2:: cemplsate.» the ‘fine
stipulated. 1.23.1155 in ‘VAV€:xIfi’§:;t”-~..ag1$.io”‘it; fer
the benafit of the 15
at.’ the opiniogz, ;t:h_&t «V:..a.;.§;:ii;i:;f1c1,*;lt ficsx:

it ta ” prajeats
simuitangaausiyg also mnsider tee

21.zz§1e112:a1:;’v’:,5 ” a. phased. manner and

if sum: ” .§,::*e taken up by the

:Lt not @2311}; generate power at

V?a_1__;but it alsa generates enyltzagment

V to A1: present, in «am: State, power

is under: three different fiomza L9,,

{‘.:,1»;xsz:._;;¢;” (2; water and (3) Therztgal. By using

fifid water, if pm-2&2: is generateav.’ J;.ni’t;::;a.3..ly

“:i’ ;.iiéfi:5tzmz1t may be little high, but in the long

(K/.

15-}

run est efi graduation Qf gower waul§. fie ,

inexyengive cgmgaxed ta the cost Q£_9%¢§n§ti¢n’§

af gower thraugn thsxmal §;afitsé 3

the Gavernment ta cnn§1&gr_thefiviews_éx§té5$eé~

by us.

14. Ceasiéexxng the fififiifig §§ £§;$ case; wa age
of the e§;n1Qn’§h§t §Eé”é§g§;;§§£#:fi%ve no gage
on mgrltg §ifigeiv§hf%E »§§§ii§g%£§n is net Ln
resgegt pi §hé”§£Qj%¢§3§:%fl§e§ to Hrz and that
tha ¢Qn§zac$ $é$§ea@ flthé: agggllants and the

amyegnmnt’,h&$ #¢§& gwen concluéedfi when

_5eveza@ *a§§1i§atiQns are gauging aeeking

§g£§xm§;¢n_t§ establish the ggwe: grnjects, it

is = fat Rthef Gavernmnt to canaider the

:fl agg11¢a:1§n h£ the agellants alang with others

-, én tag giiaritg.

backgmurmi cf this gage; the

will net Zbe ‘prejudiced in any mannez.

If the Gcgernent cansiders

=_–fihé a§§;i¢ati¢n cf the ageiiants fiavnuxahly in

apellants

fifiw

W

‘BEE

canaidazing the gz;*3;avar;<::& rat" R-2 !;11a'!f;;'~~~-:s?,j:V§.q;':«§'§fli_:,ié~:.«

cf its best effoxts, it is unab1eH__i§b–…g $§ti:iiaé

land, gsmm though R-4 has :=g. '1

league deed and R-4 is yeé::_ tr; ':.¥Jaa5i:a2:gat¢.}I;hs:e

and hand cures: pos5e.ssio3rz'V;'L'L».[ia2:=a ha.fi;._ fiifedégefi all
the partieg mo i:§.3 file
afifidavita in arm': ta _aiédéétt-afi§::–».fV_'wi€en they axe

«going to g£E:'!.!;'£'}.T§"'€f'«§:i$&J:Z'.ja9!15.?i33"': 1:79

15' «'£ ;'3_:;2D&§_H_Vfiig £:.L.3.e<.:1 by the
Princifial –. ' " Government, Energy

£)e;.':artmentL<_wM:L3:.}i" t<3 the imglenuentation cf

__tha __§r'fe:newa."L geénerggy projects , as 1.19 the

followed and the tizzm schemzla

£5»: statutory cleamancesfi The mam

V .read.§' iiexiéeunder:

* «f’;(aV.V)7 Single windaw System fax aliomwent at
V. _ z4’enaewab}.e energy pmfiects:

All czoncernea fin:-gpartxmnts cf the: state
Gavmcnmnt will jointly aozxsider the
appli.cat;i.¢:>ns fox rezmwal energy prcajects
i wind} hyciraf sc).1a:’:/ bi amass)

69

21

Ux3.®r this arrangement; all the cenciefihiied
fiepartznents of the Sfiate Gmrerrzment wi1;L”«..h}e_

breught; tznciyezr a mmsmmn facility :9 -r:.~:::~1i’2v_5:i_.::%:*’~;a1,’:”
tha applicafiion for rene*wabJ.e*1 ~
projects (wind/h’gd2_*o!salarfbioma.$;5§.§’~–..;:z:::¢eéby» _A
any entrepreneur. B:xch.;.a..__.$2;g?’ge$%:i§3n”‘ V
been incorporated in the I.):’a£’t; ‘1Iieanex»;a;b1§: 7
Energy Poliay which wili”=.’bié§T;i>13;::;,é£:=i_’.i::re::E’}i.c::;fé.j.:

the State fic>v1ernmar;1;_ fc>1<r ':3¢2r;3g:i.i%.3ra1::i.é.5r11",~A
seen. ' "* '* ' *"*w '

(1:2) 6 months' _t:i.me-_J.i'r:s.:i.'£:;.,_ f¢r"«.Vbt;v§:§.ning
statutory c:.’i.ea:;~Aa’:*:;::e.~=:.’: Affiates: Rescmxces} ,
Rewmnue, F9x:e.3i:”,– * E£a.vi.fr:.;>rii:s;e:;t: and ether
authaxities} ” 1 7

At grgsent, g:heWAh@mg;a1nt 9f the
._t?r:_e=.=yf;’ V have to run fx-an
pi 3.13.1′:-1′ to-_«p§>st *~ hé’-f’.’§r:.~bt:aA.;n”v.: these clearances .
The p_:§voé:e;s’s’«1.:;i_..-53 i§iIE€&”a*3¥3?1T1$’£§1IliI1g’ and may take
smr;§ral”T’A::1§)ntf§s. _ “a_ ‘§’:3 Qbiéiate this, a time

3.i.:rt£,t -cf. “é.”‘vm;ne.~;sv~~–..w::11 be given, within
which «t1ma”{infi;v1qua1 depaxtments give

fiheir ” c;:l é2a£’e3n’:::é;s.%i’az:px*<3xra1s and the
<:ia.e;\:elopé:*::V_V V _ can take up prcsjemz.

implementatign in right earnest.

={c§ 1:1me–l:i.1n1t:: for cxnzxgletian Qf

grajgezgm a_3.::.¢:tted:

gericm will be apglied fzrom the
<:i3t&'~ c:f " abtaining all clearances and places
an"mb1lig'at1Gn of the develogser ta corwletae

AA :h.:.s/iiaar projeafi farthwith. This is as

–_ V. _ag7i:3.1nst the prevailing” tendency an the garb
{inf servwral projeaeszt cievelcrpers to kaep their
project an held and lingering fm: want caf
‘ execution. In the event that the project

W.

22

is not corggleted within a 3 year
‘iczhe dezvalapex is unablie ta show $?.§’i:..’5fiAn–t::o11§:Let;i:;>n, t_r;::§_”~.._pr_§§ject’–«

stands cancelled. ” ..

Tharefmre, we direct that 1 Is*i’éa.’£:;’é~..

adhere he the undaz-ta.3c;§.i’:gg ..g:Lvér2 V ta 1 -Cimirt
not only in this ;__<3a.s:a,V…..1§i.1§:"'.._va.Z..sav_;i,r;_;§ othex
similar cases taicixig" T–:i,z:.f£:,<:i§-.V } <fi:::i3'in the

public :.nter«as:;*’*ag:; l::ii*ég”e{:

1.6′ As _ ¢:~.a§_se2§*,§ “‘a1m;:§..ss;i.,rm

:.i:.1’;a.- 9:-ojeci; ‘within 2%} mnths frmm the data of

6%

24

18.. Simllazclyi R-5 has alga film an

saying that deeisztmn wcmlazi be taker: ‘

gzrant avaauatian appromral te:2~~ R–~2 I axifi;-VIv”:ha.’1j;:VAV u

meeting 1.5 scheduled ta:

and the affidavit fiilgzai the __2<mfC;. also * L'

taken can record. "R.—é é;:':…,a-fiéidavit
3,5 aisu imed statirxé;*- will be
cfiezxazaagted would be
hanetzlaai tr: R-2
ta &nab:3.¢., menstruation 9f

the grczsjeaz:-1:, .s§'a_'é¢?,_':L_es"A'a:i;s3::$ "taken an raccroi.

19. x;:,., :;2:¢’ 2,;-gm; ‘*c>£” the affidavits fileé. by

and 3:: alscs by the 2″‘

and witzhczut prejudice to the

rightéfi (if agpeilants to take 1;; the matter

” ag@é¢:=;,_§:f; we

aha,

thia agspeai directing R-2

« c_c;3§1%;pILe:%;e the yr:-ogieczzt and commission the “stark

.’§~r.;iv.i_f.;if:.§.1’3. ttnzc: yaara from the date of granting ml’

* .. . c1eara.nce by the Karnataka Renewable Energy

VV

._Stata§V

1′.-E3

Develogaaszent Ltd, Kfiflia and Krishna

Jalanxgam Ltd; . If R-2 fails may c:mr1A§:1c5=:,11′,”;. e: ” ‘

wark within the time stlgulatad, ih i§ffdE ;heVu

Government to Gauge}. the ” (fc:si*?.;§z’it«33,’t211’v

hand €)”!&J1? the preject In ” V

such an ev’em; a§:pe’,Zg._3.a.nt;:!.– s?2a5;1..; ai*$a1A;:§t>11gp1ete
tna gxogegu within the t;¢ §§g§u:atea in the

afifiéavit iixegx by; it§1 -§¢_ axg ‘also of the

cagrinion that’ ” xgr;,é’:4.’_9 fkxgrassed by us in

xegard _.’1.:r::.>. in–…:»gr:.;V:i.ch pew:-“2.-r rejects
axe ix: ‘a.:2té.3:$f;-»j,:.i5′:1és:1__.iArm;1ld Eye well receivec.’ by

the €.5!«ct;a1t}i’s.3;wTa:1tV” larger interest cf the

= 2G:.=.. /V123′ t;h».=g “r:$$ult,. thug writ: aggeal is disposed

c:§f~. V.*r;.::_’ ‘~i,its%nt3’.c»z1e¢:i abcnre and. tha aczrvernrssent

–1s m&%E$3§%§i ta stxictly aahexe tn the

)2;1ti.§:z:_i:a1§é:.n:g’ given to the Court neat eniy in 131113

._]_:.~.¢a’§,’.3e’,” but algae: in ether similar cases taking

(K/.

2%

inc cansidxatian the

iargek

fie erder as ta costs§

2/120309.

public xntere$fi ?a£,

fl 1?; : mL-H

k; -..,I_

OWE} §Li:s ‘”i:’§.’cé