The complaint, preferred by AGP, pertained to 19 CNG stations developed by Torrent in localities such as Neelankarai, Kottivakkam, Pallikaranai, Madipakkam, Ullagaram, Adambakkam, Vettuvankeni, St. Thomas Mount, Kovur, Kovilambakkam, among others. | Photo credit: FILE PHOTO
The Appellate Tribunal for Electricity (Aptel) has ordered Torrent Gas Chennai Private Limited to cease and desist from installing, constructing or operating 19 CNG stations, ruling that they are located within the then Kancheepuram district, whose rival AGP CGD India Private Limited had won the tender. Development of the Urban Gas Distribution Network.
The Petroleum and Natural Gas Regulatory Board (PNGRB) had granted authorization to AGP in 2018 for the development of the Urban Gas Distribution Network in the Geographic Area (GA 9.61) and the company had accepted the terms and conditions in 2020, after a verdict of the Supreme Court.
PNGRB had granted clearance to Torrent Gas Chennai Private Limited for development of urban gas distribution network in the geographical area (GA 9.62) of Chennai and Tiruvallur districts in 2018.
AGP had initially filed a complaint with PNGRB against Torrent alleging infringement of its rights, including infrastructure exclusivity and marketing exclusivity, conferred by the local or municipal gas distribution network authorized for the geographical area of โโKancheerpuram district.
The complaint concerned 19 CNG stations developed by Torrent in localities such as Neelankarai, Kottivakkam, Pallikaranai, Madipakkam, Ullagaram, Adambakkam, Vettuvankeni, St. Thomas Mount, Kovur, Kovilambakkam, among others.
After being unsuccessful before PNGRB, AGP filed an appeal with Aptel. While AGP maintains that the locations in question are within Kancheepuram district, both PNGRB and Torrent claim that they are within Chennai and Tiruvallur districts, Aptel said.
In ruling in favor of AGP, the Court noted that PNGRB has determined the boundaries of GA 9.61 and 9.62 based on their respective districts, and not beyond. The division of erstwhile Kancheepuram district between Kancheepuram and Chengalpattu districts, after the allotment of GAs, would have no bearing on the determination of the GAs in question 9.61 and 9.62, and on the issuance of the application and offer document pursuant with them, Aptel pointed out in his recent Order.
On AGP's claim for damages of โน 3 crore for each of the 19 CNG stations amounting to โน 57 crore, Aptel said relief cannot be granted as PNGRB has to determine the loss suffered and the amount of damages after giving both parties a reasonable opportunity to be heard. He granted freedom to AGP to file a fresh petition with PNGRB regarding its claim for damages.
