HP High Court Orders Attachment Of Himachal Bhawan In Delhi Over State's Failure To Clear ₹64 Crore Dues

The controversy traces back to a judgment delivered on January 13, 2023, in a writ petition filed by Seli Hydro Electric Power Company Limited. The court had directed the Himachal Pradesh government to refund an up-front premium of Rs. 64 crore deposited by the petitioner, along with 7% interest per annum from the date of filing the petition until its realization.

However, the state sought relief through a letters patent appeal, and the Division Bench granted interim protection, contingent on the state depositing the awarded amount along with accrued interest. Despite extensions granted by the court, the state failed to deposit the amount, prompting the Division Bench to vacate its interim protection on July 15, 2024.

The petitioner subsequently initiated execution proceedings, seeking enforcement of the award.

Highlighting the urgency and financial implications of the delay, Justice Ajay Mohan Goel remarked:

"As of now, as there is no interim protection in favour of the respondents-State, obviously, the award has to be implemented more so for the reason that delay in deposit of the award amount by the State is entailing interest on daily basis which has to be paid from the public exchequer."

In view of the same the Court added,

“ Therefore, for the purpose of execution of the award in issue, this Court orders the attachment of Himachal Bhawan, 27-Sikandra Road, Mandi House, New Delhi, and the execution petitioner may take appropriate steps for auction thereof”

Underscoring the need to hold the concerned officials accountable for the delay the court further directed the Principal Secretary (MPP & Power) to conduct a fact-finding inquiry to identify the officers responsible for the omission. The court stated,

“Principal Secretary (MPP & Power) shall hold a fact finding enquiry as to on account of omission of which particular officer(s), the amount has not been deposited as the interest shall be ordered to be personally recovered from the erring Officer(s)/official(s)”

The inquiry report is to be submitted to the court within 15 days as the matter has been posted December 6, 2024 for further review.

Case Title: Seli Hydro electric Power Co. Ltd. vs. Director, Directorate of Energy and another

Click Here To Read/Download Order