By Nageshwar Patnaik in Bhubaneswar, April 22, 2015

The legal division of the company is deliberating upon the likely scenario following ATE’s dismissal of its plea for interim stay on the license revocation issue, sources said.

ATE chairperson Justice Ranjana P. Desai and Technical Member, Rakesh Nath on Tuesday dismissed the interim application of the Discoms saying, “it is not possible for us to grant any mandatory interim relief to the Appellants [Discoms] and restore status-quo ante. The interim application is therefore, dismissed.

However, the two-member bench made it clear that its rejection for interim stay would not have any bearings on “the merits of the case”.

Reliance Infra managed Discoms had filed two applications – one challenging the order of OERC to rest management and control of its three Discoms along with the assets and interests with Gridco’s chairman and managing director (CMD).

Besides, the Discoms had moved the ATE last month contesting the March 4 order of OERC to revoke the licenses of of three Reliance Infra companies- North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco) on grounds of non-satisfactory performance, failure to contain steep aggregate technical & commercial (AT&C) losses and consistent defaults in payment of bulk power supply price.

Kapil Sibal, the senior counsel appearing for the Discoms even submitted before the ATE that if this court is not inclined to restore status-quo ante, the officers of the Appellants may be permitted to work under the directions of the Administrator.

The Court did not accept the suggestions saying, “We are also of the opinion that in the circumstances of the case such an arrangement is not desirable and also not feasible”, the ATE order said.

It also disbanded the Central Services Office (CSO), umbrella organisation of Reliance Infra for power distribution operation in the state.