VidhiSangh

Supreme Court of India · 10/12/2021

MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO. LTD. versus M/S. JSW STEEL LIMITED & ORS.

[2021] 9 S.C.R. 404 · 2021 INSC 866

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Summary

The Court held that captive consumers using electricity from their captive generating plants were not liable for the additional surcharge under Section 42(4) of the Electricity Act. Their open-access right arose directly under Section 9, subject to adequate transmission capacity, rather than from permission of the State Commission of the kind contemplated by Section 42(4). Captive users also constituted a distinct class because of their generation investments. Surcharge collected under the interim stay was directed to be adjusted against future wheeling bills.

Issues

  1. Whether captive users were liable for the additional surcharge under Section 42(4).
  2. How surcharge collected under the Court’s interim stay should be returned.

Provisions considered

Held

Result

Licensee’s appeals dismissed without costs; Tribunal’s exemption of captive users from Section 42(4) additional surcharge upheld. Amounts already recovered directed to be adjusted against future wheeling-charge bills.

Judgment PDF: Supreme Court of India, [2021] 9 S.C.R. 404.