Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Electricity (Supply) Act 1948: Section 43A(2) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Electricity (Supply) Act, 1948:Section 43A(2)-Tariff notification-During negotiation of terms of various agreements relating to power projects with private investors pursuant to Policy Decision of the Government to privatise the power sector-Effect of, on the ongoing negotiations-After the issue of tariff notification, Central Government suggested to give priority to those projects offering least tariff so as to ensure benefit of capacity addition from such projects in the 9th Five Year Plan-Electricity Board decided to prioritise the projects for providing escrow protection mainly on the basis of least tariff criterion-Held, decision of Board not arbitrary or unreasonable-Board was also entitled to alter the terms of escrow agreement as there was no statutory obligation under Section 43 or 43-A of the Act to maintain escrow account-Although Power Purchase Agreements were concluded contract, but there was no obligation under PPA to execute escrow agreement at a date prior to the first unit commercial operation date-Tariff criteria based on and consistent with the notification issued under Section 43-A (2) cannot be described as a hoax, unrealistic or arbitrary-Constitution of India, Articles 298, 299-Policy decision Administrative Law-Arbitrariness. Electricity-Board deciding to give priority to those power projects offering least tariff fixed in accordance with the mandate of such notification-Held, court would not interfere and substitute a different criterion-Constitution of India-Articles 226 and 136-lnterference with.Constitution of India-Articles 226 and 136-Decision of Expert Committee-Certain assumption made by it for determining the project costs-Held, if such assumptions based on valid basis and not fanciful or arbitrary-Court would not invalidate such assumption-Practice and Procedure. Words and Phrases-'Statutory contract'-Meaning of-Within the meaning of Contract Act, 1872. |
Judge | Hon'ble Mr. Justice G.T. Nanavati |
Neutral Citation | 2000 INSC 83 |
Petitioner | Indian Thermal Power Ltd. Etc. Etc. |
Respondent | State Of M.p. And Ors. |
SCR | [2000] 1 S.C.R. 925 |
Judgement Date | 2000-02-16 |
Case Number | 1140 |
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