VidhiSangh

Supreme Court of India · 21/01/2019

RELIANCE INFRASTRUCTURE LIMITED versus STATE OF MAHARASHTRA AND ORS.

[2019] 1 S.C.R. 886 · 2019 INSC 63

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Summary

The Court sustained MERC’s station-specific heat-rate norm for the appellant’s Dahanu plant against a discrimination challenge. Similar equipment specifications did not establish similar performance; historical efficiency, technical studies, achievable targets and consumer gains were legitimate considerations. Judicial review could address statutory breach or manifest arbitrariness but could not substitute the Court’s tariff assessment. The High Court was wrong, however, to treat the writ challenge as barred by the statutory appeal and to impose costs for pursuing it.

Issues

  1. Whether a writ challenging the validity of tariff regulations was maintainable despite an appeal concerning relaxation of operating norms.
  2. Whether station-specific heat-rate norms violated the National Tariff Policy or discriminated against an efficient plant.
  3. What review applies to an expert commission’s legislative tariff regulations.
  4. Whether parity in preceding and succeeding control periods compelled parity in the disputed period.

Provisions considered

Held

Result

Appeal disposed of: Regulation 44.2(d) upheld and dismissal of the writ on merits affirmed on the Supreme Court’s reasons. High Court’s finding of non-maintainability disapproved and its costs direction set aside. No order as to costs.

Judgment PDF: Supreme Court of India, [2019] 1 S.C.R. 886.