Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2003 – ss. 61 64 and 86 – Power Purchase Agreement(PPA) 62 Electricity Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Electricity Act, 2003 – ss. 61, 62, 64 and 86 – Power Purchase Agreement(PPA) – Appellants-distribution companies (DISCOMS) were to purchase 100% power generated by respondent no.1- HNPCL – O.P. No.21 of 2015 filed by HNPCL for determination of capital cost and O.P. No.19 of 2016 filed by appellants–DISCOMS for approval of PPA – However, on 4th January, 2018, appellantsDISCOMS filed IAs before the State Electricity Regulatory Commission for withdrawal of O.P. No.19 of 2016 and disposal of O.P. No.21 of 2015 – State Commission allowed withdrawal of O.P. No.19 of 2016 filed by appellants–DISCOMS and consequentially dismissed O.P. No.21 of 2015 filed by HNPCL – Appeal of respondent no.1-HNPCL allowed by Appellate Tribunal for Electricity (APTEL) which directed the State Electricity Regulatory Commission to dispose of O.P. No.21 of 2015 and O.P. No.19 of 2016 on merits – Correctness of – Held: APTEL rightly held that, on account of the assurance given by the State of Andhra Pradesh/APDISCOMS, HNPCL had altered its position and as such, it was not permissible for the appellants-DISCOMS to withdraw O.P. No.19 of 2016 – Conduct of appellants-DISCOMS would disentitle them to withdraw the application – Argument, that on account of increase of the capital cost of the project, the appellants–DISCOMS would be required to purchase power at much higher rate, also does not hold water since the State Electricity Regulatory Commission would only approve the cost as it would feel appropriate, as guided by the provisions u/ s.61 of the Act of 2003 and the Regulations; and merely because, the cost of the project is estimated by HNPCL at a particular amount, the State Commission is not bound to accept the same – Further, perusal of s.64 of the Act of 2003 would reveal that even a Generating Company is entitled to make an application for determination of tariff u/s.62 of the Act of 2003 – As such, the State Commission was wholly unjustified in dismissing O.P. No.21 of 2015 filed by HNPCL – For reasons unknown, appellants-DISCOMS took a decision to resile from their earlier stand, due to which, not only the huge investment made by HNPCL would go in waste, but also valuable resources of the public including thousands of acres of land would go in waste – Appellants-DISCOMS, which are instrumentalities of the State, could not be permitted to change their decision at their whims and fancies and, particularly, when it was adversarial to the public interest and public good – The record clearly showed that the change in decision was arbitrary, irrational and unreasonable – IAs filed by appellants–DISCOMS, were acts, affecting public interest and public good, without there being any rational or reasonable basis for the same – Conduct of appellants– DISCOMS, deprecated – In any event, the impugned judgment of APTEL cannot be said to be prejudicial to the interests of any of the parties – What was done by APTEL was only to direct the State Electricity Regulatory Commission to dispose of the said two O.Ps on merits – Appeal dismissed with costs, quantified at Rs.5,00,000/ - – State Electricity Regulatory Commission to decide the said two O.Ps, expeditiously, within six months. Constitution of India – Arts.12 and 14 – Public Authority – State – Instrumentalities of the State – Held: Every action of a State is required to be guided by the touch-stone of non-arbitrariness, reasonableness and rationality – Every action of a State is equally required to be guided by public interest – Every holder of a public office is a trustee, whose highest duty is to the people of the country – The Public Authority is therefore required to exercise the powers only for the public good. |
Judge | Hon'ble Mr. Justice Bhushan Ramkrishna Gavai |
Neutral Citation | 2022 INSC 136 |
Petitioner | Southern Power Distribution Power Company Limited Of Andhra Pradesh (apspdcl) & Anr. |
Respondent | M/s Hinduja National Power Corporation Limited & Anr |
SCR | [2022] 8 S.C.R. 198 |
Judgement Date | 2020-02-02 |
Case Number | 1844 |
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