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The Supreme Court has asked the Orissa Electricity Regulatory Commission to initiate fresh proceedings against three Reliance Energy-controlled power distribution companies, which had failed to repay their creditors.A bench headed by Justice B N Agarwal, while allowing the appeal, partially set aside the sectoral tribunal's decision to quash show-cause notices issued to these discoms by the regulatory commission.

The court said it was open to the regulatory commission to initiate fresh proceedings against the discoms. "The regulatory commission was quite justified in issuing notices to the three companies. But it was not justified in appointing three officers to oversee the working of the companies," it added.

It also allowed the companies to make representations before the commission. The bench had earlier issued notices to the discoms - Western Electricity Company, Southern Electricity Company and North Eastern Electricity Supply Company - in which Reliance Energy owned 51 percent stake.

The petitioner had approached the Supreme Court, challenging the order of the Appellate Tribunal for Electricity, which had quashed the show-cause notices issued to these discoms by OERC.

According to OERC, the tribunal was not right in interfering with the commission's proceedings at a stage where it had only issued show-cause notices.

The notices were issued after prima facie conclusion that the discoms were unable to discharge their functions and perform duties under the Electricity Act, 2003.

Source- Zee News