VidhiSangh

Supreme Court of India · 08/01/2024

JAIPUR VIDYUT VITRAN NIGAM LTD. & ORS. versus MB POWER (MADHYA PRADESH) LIMITED & ORS.

[2024] 1 S.C.R. 909 · 2024 INSC 23

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Supreme Court set aside the direction requiring Rajasthan’s electricity procurers to contract for 200 MW from MB Power. A competitive bidding process does not compel acceptance of tariffs that are not market aligned: the State Commission may scrutinise price and consumer interests. The writ petition also bypassed an effective statutory remedy and suffered from delay.

Issues

  1. Whether the State Commission adopting competitively discovered tariffs under Section 63 may examine market alignment and consumer interests.
  2. Whether the power to reject all price bids under the Bidding Guidelines permits rejection of particular bids that are not market aligned.
  3. Whether the earlier orders required procurement from lower-ranked bidders until 906 MW was filled.
  4. Whether the High Court should have entertained MB Power’s delayed writ petition despite the statutory remedy and directed execution of a power purchase agreement.
  5. Whether APTEL’s consequential stay of a fresh medium-term procurement could survive the setting aside of the High Court judgment.

Provisions considered

Held

Result

All three appeals allowed. The Rajasthan High Court judgment dated 20 September 2021 directing procurement from MB Power was quashed. MB Power must pay Rs.5 lakh costs to the appellants in each of Civil Appeals Nos.6503 and 6502 of 2022. APTEL’s order dated 1 June 2023 staying the medium-term procurement was also quashed, without a separate costs order in Civil Appeal No.4612 of 2023. Pending applications disposed of.

Judgment PDF: Supreme Court of India, [2024] 1 S.C.R. 909.