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Dedicated Feeder and Trunkline Dues Dispute: Reliance Spinning Mills Gets Interim Order

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Kathmandu. The Patan High Court has refused to issue an interim order in response to a writ petition filed by Reliance Spinning Mills challenging the Nepal Electricity Authority (NEA) for not paying its dues.

Issuing a show-cause order on Tuesday, the Patan High Court has fixed the hearing for November 3 for discussion on the interim order.

A single bench of Justice Surya Prasad Parajuli had conducted the hearing on the writ petition filed at Patan High Court on October 11. In the one-sided hearing, the writ petitioner had sought a mandamus order not to cut the line by annulling the decision to cut the transmission line.

The court refused to issue a mandamus order to line up immediately and annulled the circulars and summoned both sides to discuss whether to issue an interim order. The power supply has been disrupted immediately after the court ordered the hearing for an interim order on the 19th.

The Nepal Electricity Authority (NEA) has disconnected the power supply to Reliance Spinning Mills for not paying the dues of the dedicated trunk line.

Issuing a notice on September 26, NEA had given 21 days to pay the dues. That period was till October 2. Mills had filed a writ petition at the Patan High Court on May 2 seeking a mandamus order to disconnect the transmission line and revoke the directive to cut the transmission line. Mills had filed a writ petition naming Nepal Electricity Authority (NEA) as the defendant. On the same day, Mills informed the authority that he had gone to court and that he had not cut the line at the factory.

According to NEA, the mills are yet to pay dues of Rs 753.68 million. According to NEA, the amount is yet to be paid for additional charges for the use of dedicated trunk lines from January 2072 to April 2075.

Reliance, which runs two yarn factories in Khanar and Duhabi of Sunsari, is one of the continuously profitable industries. The company had posted a net profit of Rs 1.48 billion in the previous fiscal year.

The company mainly produces high-quality yarn and sells it to textile industries. Apart from Nepal, the mills are exported to India, Europe and America.

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