Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Electricity: Hydel schemes for generation of electricity |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Electricity: Hydel schemes for generation of electricity – Royalty for use of water – Demand of – On facts, in terms of the Government policy, the appellant-Captive Power Producers established Hydro Electric Project as Captive Generation Station for its industrial unit – Agreement between the appellant and the State Electricity Board wherein Clause 14 provided that royalty would be charged for controlled supply of water – Appellants paying wheeling charges for consumption of electricity, as also charges for the use of controlled supply of water at the rate specified in Agreement – Appellant then sought exemption from payment of charges for controlled release of water or royalty in respect of electricity generated by it at its Hydel Project – Rejection of the appellant’s claim by the High Court – On appeal, held: Reasonable charges for benefit derived by private entities justified – Since the private entity or agency would stand to gain from and out of the capital outlay and infrastructure put in place by the State, some reasonable charges for such benefit would naturally be imposed – It was only under such Policy that both the appellants were given permissions to set up their electricity generating units and such term was consciously accepted by them – Thus, the concerned Clause in the Agreement as well as the terms of the Policy cannot be termed unconscionable, arbitrary or unreasonable – Furthermore, the royalty would be in terms of the agreement between the parties and normally has direct relationship with the benefit or privilege conferred upon the grantee as against tax which is imposed under a statutory power without reference to any special benefit conferred on the payer of the tax – Whatever be the nomenclature, the charges for use of controlled release of water were for the privilege enjoyed by the CPPs, on basis of the arrangement between the parties. |
Judge | Honble Mr. Justice Uday Umesh Lalit |
Neutral Citation | 2021 INSC 449 |
Petitioner | M/s. Indsil Hydro Power And Manganese Limited |
Respondent | State Of Kerala And Others |
SCR | [2021] 13 S.C.R. 136 |
Judgement Date | 2021-09-06 |
Case Number | 9845 |
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