Appellate Tribunal for Electricity (Aptel) told Torrent Gas Chennai Private Limited to cease and desist from laying, building or operating 19 CNG stations, ruling that they are located within the then Kancheepuram district for which rival AGP CGD India Private Limited had won the bid for developing City Gas Distribution Network.
The Petroleum and Natural Gas Regulatory Board (PNGRB) had granted authorisation to AGP in 2018 for development of City Gas Distribution Network in the Geographical Area (GA 9.61) and the company had accepted the terms and conditions in 2020, following a Supreme Court verdict.
PNGRB had granted authorisation to Torrent Gas Chennai Private Limited for development of the City Gas Distribution Network in the Geographical Area (GA 9.62) of Chennai and Tiruvallur districts in 2018.
AGP had initially filed a complaint before PNGRB against Torrent alleging infringement of its rights, including infrastructure exclusivity and marketing exclusivity, vested with the under the City or Local Gas Distribution Network Authorised for the Geographical Area of Kancheerpuram district.
The complaint pertained to 19 CNG Stations developed by Torrent in locations like Neelankarai, Kottivakkam, Pallikaranai, Madipakkam, Ullagaram, Adambakkam, Vettuvankeni, St. Thomas Mount, Kovur, Kovilambakkam, among others.
After being unsuccessful before PNGRB, AGP moved an appeal before Aptel. While AGP contends that the subject locations fall within Kancheepuram district, both PNGRB and Torrent submit that they fall within Chennai and Tiruvallur districts, Aptel said.
Ruling in favour of AGP, the Tribunal noted that PNGRB has determined the boundaries of GAs 9.61 and 9.62 on the basis of their respective districts, and not beyond. The division of the erstwhile Kancheepuram district between Kancheepuram and Chengalpattu districts, post award of the GAs, would have no bearing on determination of the subject GAs 9.61 and 9.62, and in issuing the application-cum-bid document pursuant thereto, Aptel noted in its recent order.
On AGP’s claim for damages of ₹3 crore for each of the 19 CNG stations aggregating to ₹57 crore, Aptel said the relief cannot be granted, since the loss suffered and quantum of damages has to be determined by PNGRB after giving both the parties a reasonable opportunity of being heard. It granted liberty to AGP to file a fresh petition before PNGRB with respect to their claim for damages.
