{"id":197576,"date":"2001-10-10T00:00:00","date_gmt":"2001-10-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/punjab-state-electricity-board-vs-national-thermal-power-on-10-october-2001"},"modified":"2015-11-23T01:05:54","modified_gmt":"2015-11-22T19:35:54","slug":"punjab-state-electricity-board-vs-national-thermal-power-on-10-october-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/punjab-state-electricity-board-vs-national-thermal-power-on-10-october-2001","title":{"rendered":"Punjab State Electricity Board vs National Thermal Power &#8230; on 10 October, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Punjab State Electricity Board vs National Thermal Power &#8230; on 10 October, 2001<\/div>\n<div class=\"doc_author\">Author: Shah<\/div>\n<div class=\"doc_bench\">Bench: M.B. Shah, R.P. Sethi<\/div>\n<pre>           CASE NO.:\nAppeal (civil) 7082-7084  of  2001\n\n\n\nPETITIONER:\nPUNJAB STATE ELECTRICITY BOARD\n\n\tVs.\n\nRESPONDENT:\nNATIONAL THERMAL POWER CORPORATION LIMITED &amp; OTHERS\n\nDATE OF JUDGMENT:\t10\/10\/2001\n\nBENCH:\nM.B. SHAH &amp; R.P. SETHI\n\n\n\n\nJUDGMENT:\n<\/pre>\n<p>Shah, J.\n<\/p>\n<p>\tLeave granted.\n<\/p>\n<p>\tAppellantPunjab State Electricity Board and other States<br \/>\nElectricity Boards have filed these appeals against the impugned<br \/>\njudgment and order dated 7th March, 2001 passed by the High Court<br \/>\nof Delhi in Civil  Miscellaneous No. 232 of 2001 in FAO No.131 of<br \/>\n2001, FAO No.159 of 2000 and FAO No.88 of 2001.\n<\/p>\n<p>\tThe Central Electricity Regulatory Commission (hereinafter<br \/>\nreferred to as the Commission), constituted under the Electricity<br \/>\nRegulatory Commissions Act, 1998 (hereinafter referred to as the<br \/>\nAct) by its order dated 21.12.2000 has fixed the norms for tariff for<br \/>\nhydro generation and inter-state transmission.\tThat order was<br \/>\nchallenged by the respondentNational Thermal Power Corporation<br \/>\nLimited (hereinafter referred to as the NTPC) by filing FAO<br \/>\nNo.159 of 2000 under Section 16 of the Act before the High Court of<br \/>\nDelhi.\tThe High Court by its interim order has virtually stayed the<br \/>\noperation of the impugned order by laying down certain conditions<br \/>\nand by observing that it appears desirable that all the directions<br \/>\nissued by the Commission shall be observed to charge tariff on the<br \/>\nbasis of the pre-existing norms.  It was also observed that the NTPC<br \/>\nshall continue to charge tariff on the basis of pre-existing norms only<br \/>\nso long as the arrears up to 31st March, 2001 due against different<br \/>\nrespondents mainly State Electricity Boards are not  adjusted and the<br \/>\nmoment the arrears of NTPC stand paid, the concerned State<br \/>\nElectricity Board and all concerned respondents shall be entitled to<br \/>\nmove the Court for fresh consideration.\t The Court also observed<br \/>\nthat it was just an interim order and after the group for formulating<br \/>\nthe Tariff Policy takes a decision, the Court shall be informed about<br \/>\nthe decision taken by the group for formulating the tariff policy and<br \/>\nthe party shall be entitled to be heard afresh.\t These interim<br \/>\ndirections are challenged by the Punjab State Electricity Board<br \/>\n(PSEB).\n<\/p>\n<p>\tAt the time of hearing of these matters, learned counsel for the<br \/>\nPSEB submitted that the interim order passed by the High Court is,<br \/>\non the face of it, illegal.  He also contends that Section 16 only<br \/>\nprovides for filing of appeal but it does not empower the High Court<br \/>\nto stay the operation of the order which was passed by the<br \/>\nCommission after considering the submission as well as evaluating<br \/>\nvarious norms required for fixing the tariff.\n<\/p>\n<p>In its report, the Commission has observed as under:\n<\/p>\n<p>1.4.1.\tThe terms and conditions as will be notified, shall,<br \/>\napply to all utilities covered under Section 13(a) (b) and\n<\/p>\n<p>(c) of the ERC Act unless specifically stated otherwise.<br \/>\nHowever, it should be remembered that these terms and<br \/>\nconditions shall apply wherever cost based tariff is<br \/>\ndetermined by the Commission.  These terms and<br \/>\nconditions shall be in force for a period of 3 years<br \/>\neffective from 1st April, 2001 and reviewable\/renewable at<br \/>\nthe discretion of the Commission.\n<\/p>\n<p>1.4.3.\tIf this order creates any unfairness, or hardship,<br \/>\nparties may approach the Commission for redressal,<br \/>\nwithin 60 days of issue in accordance with the provisions<br \/>\nfor review as contained in Regulation 103 of the Conduct<br \/>\nof Business Regulation.\n<\/p>\n<p>In para 1.5.1 the Commission has kept in view the twin<br \/>\nobjectives contained in Section 13(e) according to which tariff shall<br \/>\nbe fair to the consumers and facilitate mobilization of adequate<br \/>\nresources for the power sector.\n<\/p>\n<p>In its operative order, the Commission has observed that the<br \/>\nnormal tariff period shall be a period of five years but shall at this<br \/>\nstage be for a period of three years.\tFinally it has observed that:\n<\/p>\n<p>Ensuring the financial viability of efficient and<br \/>\nproactive utilities, would be a prime concerned of the<br \/>\nCommission.  At the same time, safeguarding the<br \/>\ninterests of the consumers is a major responsibility of<br \/>\nthe Commission, particularly, when the market structure<br \/>\nand system conditions do not support competition.  The<br \/>\nCommission has to play a balancing role and it intends<br \/>\nto discharge this responsibility transparently, through a<br \/>\nconsultative mode.  It expects that participative decision<br \/>\nmaking will lighten the burden of transiting to a more<br \/>\nefficient system, for all stakeholders.\n<\/p>\n<p>It is true that under Section 38(1) of the Act, the Central<br \/>\nCommission has to discharge its functions by taking into<br \/>\nconsideration directions issued by the Central Government in matters<br \/>\nof policy involving public interest.  Nothing has been pointed out to<br \/>\nindicate that Government has issued such directions.  In any case all<br \/>\nthese questions are required to be dealt with at the time of final<br \/>\nhearing of the matter and at this stage, it would be difficult to hold<br \/>\nthat prima facie, the norms prescribed by the Central Commission<br \/>\nare arbitrary or ex facie  unjustifiable, particularly in view of Section<br \/>\n13(e) which inter alia provides that its function is to aid and advise<br \/>\nthe Central Government in formulation of tariff policy which shall be\n<\/p>\n<p>(i) fair to the consumer; and (ii) facilitate mobilization of adequate<br \/>\nresources for the power sector.\n<\/p>\n<p>Further, the Commission has submitted its Report after<br \/>\nconsidering all relevant material which was placed before it and after<br \/>\nhearing all objections raised by the concerned parties.\t In view of the<br \/>\ntime frame prescribed by the Commission, if the interim stay order<br \/>\ncontinues indefinitely, the Report would become totally nugatory.  If<br \/>\nthe norms prescribed by the Commission are implemented and<br \/>\nfinally if the appeal is allowed or norms are modified, NTPC could<br \/>\nbe appropriately compensated.\n<\/p>\n<p>Lastly, it is true that section 16 only provides that any person<br \/>\naggrieved by the decision or order of the Central Commission may<br \/>\nfile an appeal to the High Court.  No further procedure is prescribed<br \/>\nunder the Act and no rules are shown to us prescribing any<br \/>\nprocedure.  Learned counsel for the parties have also not pointed out<br \/>\nany provision in the Act or the Rules indicating that while exercising<br \/>\nthe appellate jurisdiction, the High Court has power to grant such<br \/>\ninterim relief.\t It is true that when appellate jurisdiction is conferred<br \/>\nunless there is a specific provision to the contrary, the jurisdiction of<br \/>\nthe appellate authority would be of widest amplitude.  In proper<br \/>\ncases, such authority may have jurisdiction to grant interim reliefs.<br \/>\nHowever, this would depend upon the nature of the order passed by<br \/>\nthe competent authority in discharge of its functions.\tIn case of<br \/>\nexercise of administrative or advisory jurisdiction by the authority,<br \/>\nthere may not be any question of granting interim stay.\t It is needless<br \/>\nto point out that even if there is power to grant interim stay, it cannot<br \/>\nbe exercised in a routine way or as a matter of course in view of the<br \/>\nspecial nature of jurisdiction conferred upon the Commission.<br \/>\nHowever, considering the fact that the appeal is pending before the<br \/>\nHigh Court, in our view, the aforesaid question\t is not required to be<br \/>\nfinally determined at this stage because the High Court itself has<br \/>\nobserved that the matter may be placed for further hearing after the<br \/>\nGroup for formulating the Tariff Policy takes decision and that the<br \/>\nparties would be entitled to be heard afresh. Similar are the<br \/>\nobservations made by the Commission in its Report.\n<\/p>\n<p>Hence, in our view, this was not a fit case for grant of interim<br \/>\nrelief so as to make the Report virtually nugatory. Further, the High<br \/>\nCourt in its impugned judgment has observed that this is just an<br \/>\ninterim order and  after the Group for formulating the Tariff Policy<br \/>\ntakes a decision, the High Court should be informed about the<br \/>\ndecision taken by the Group for formulating the Tariff Policy and<br \/>\nparties would be entitled to be heard afresh.  In this view of the<br \/>\nmatter, the impugned order passed by the High Court requires to be<br \/>\nset aside and the Court is requested to decide the appeals on merits<br \/>\nas expeditiously as possible.\n<\/p>\n<p>In the result, the appeals are allowed, the impugned order<br \/>\npassed by the High Court is set aside.\tThere shall be no order as to<br \/>\ncosts.\n<\/p>\n<p>\t\t\t\t\tJ.\n<\/p>\n<p>\t\t\t\t\t(M.B. Shah)<\/p>\n<p>\t\t\t\t\tJ.\n<\/p>\n<p>October 10, 2001.\t\t\t(R.P. Sethi)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Punjab State Electricity Board vs National Thermal Power &#8230; on 10 October, 2001 Author: Shah Bench: M.B. Shah, R.P. Sethi CASE NO.: Appeal (civil) 7082-7084 of 2001 PETITIONER: PUNJAB STATE ELECTRICITY BOARD Vs. RESPONDENT: NATIONAL THERMAL POWER CORPORATION LIMITED &amp; OTHERS DATE OF JUDGMENT: 10\/10\/2001 BENCH: M.B. SHAH &amp; R.P. SETHI [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-197576","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Punjab State Electricity Board vs National Thermal Power ... on 10 October, 2001 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/punjab-state-electricity-board-vs-national-thermal-power-on-10-october-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Punjab State Electricity Board vs National Thermal Power ... on 10 October, 2001 - Free Judgements of Supreme Court &amp; 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