VidhiSangh

Supreme Court of India · 30/09/2024

KERALA STATE ELECTRICITY BOARD LTD. versus JHABUA POWER LIMITED AND OTHERS

[2024] 9 S.C.R. 971 · 2024 INSC 768

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Summary

The Supreme Court agreed with APTEL that a State Government policy direction under Section 108 of the Electricity Act, 2003 only guides and cannot bind or displace the State Commission's adjudicatory function, and that KSERC could not review its refusal to approve power supply agreements solely on the strength of such a direction; it nevertheless restored the distribution licensee's original appeal before APTEL, which had been withdrawn with liberty.

Issues

  1. Whether a policy direction issued by the State Government under Section 108 of the Electricity Act, 2003 binds the State Electricity Regulatory Commission in exercising its adjudicatory functions.
  2. Whether a subsequent State Government direction under Section 108 is a sufficient ground for the Commission to review its earlier order under Section 94 of the Act read with Order XLVII Rule 1 CPC.
  3. What relief should follow given APTEL's earlier order permitting withdrawal of the appellant's appeal with liberty to pursue the appellate remedy later.

Provisions considered

Held

Result

Appeals disposed of; APTEL's setting aside of KSERC's review order upheld; Appeal No. 518 of 2023 against KSERC's order dated 10 May 2023 restored to APTEL, to be heard only on grounds other than those covered by the impugned judgment.

Judgment PDF: Supreme Court of India, [2024] 9 S.C.R. 971.