VidhiSangh

Supreme Court of India · 20/02/2020

KERALA STATE ELECTRICITY BOARD REP. BY ITS SECRETARY & ANR. versus PRINCIPAL SIR SYED INSTITUTE FOR TECHNICAL STUDIES & ORS.

[2020] 7 S.C.R. 885 · 2020 INSC 218

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Summary

The Supreme Court upheld Kerala’s higher electricity tariff for self-financing educational institutions compared with government-run and aided institutions. The statutory purpose of supply could account for the character, beneficiaries and public funding of the institutions, rather than merely their shared activity of imparting education. Inclusion under a commercial tariff heading did not require proof that education itself was a commercial business. The Division Bench judgment invalidating the distinction was reversed.

Issues

  1. Whether differential tariffs for self-financing and government-run or aided educational institutions were permissible under Section 62(3).
  2. Whether the unopposed tariff notification failed for want of contemporaneous reasons.

Provisions considered

Held

Result

Appeals allowed; Division Bench judgment set aside and Single Judge’s judgment sustaining the tariff restored. Connected applications disposed of, interim orders dissolved and no order as to costs.

Judgment PDF: Supreme Court of India, [2020] 7 S.C.R. 885.