Law:

Section:

Constitution of Pakistan--- ----Art.199---Constitutional petition---Electrical power company---Overdue payment---Stoppage of payment due to audit objection---Scope---Petitioner/electric supply company supplier under agreement with Multan Electric Power Company (MEPCO), had supplied electricity but the amount/payment due on account of supply of electricity was not released---MEPCO informed the petitioner/electric supplier that its payments were withheld on account of audit objections---Contention of the petitioner/electric supplier was that audit objection was internal affair of MEPCO and payment could not be denied on this ground---Validity---In view of Revised Power Generation Agreement, MEPCO was bound to make payments against invoices, submitted for the relevant months---Respondent/MEPCO had admitted that payments were withheld due to audit objection, which was a matter between MEPCO and its audit department---MEPCO was directed by High Court to release the long overdue withheld payment of petitioner/ electric supplier along with prescribed mark-up---Constitutional petition was accepted. WAPDA through Chairman and 3 others v. Fazal Karim and 5 others 2008 YLR 308 and Water and Power Development Authority and others v. Umaid Khan 1988 CLC 501 ref. THIS ORDER PASSED BY: SHOAIB SAEED, J.--- Petitioner is a holder of Generation Licence issued by National Electric and Power Regulatory Authority (hereinafter referred as "NEPRA") for its own power generation. In this regard on 6-10-2001 petitioner company entered into an agreement for supply of electricity of MEPCO (respondent) where-under the company offered to sell/supply 5-MW of power to MEPCO (respondent) which was accepted resulting into a Power Purchase Agreement (hereinafter referred as PPA) dated 4-6-2007. The PPA executed between the parties was for a period of one year till June 2008. On its expiry a Revised Power Generation Agreement (hereinafter referred as RPPA) dated 28-2-2009 was executed between the parties for a period of five years and under fresh terms supply of 9-MW of Power was to be supplied till its expiry in February, 2014. Electricity was supplied by petitioner company to MEPCO (respondent)…

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