BSES LTD. versus M/S. TATA POWER CO. LTD. AND ORS.

BSES LTD. versus M/S. TATA POWER CO. LTD. AND ORS.

The determination of charges for standby facility falls within the Commission's jurisdiction, as such charges are part of tariff determination per Sections 22 and 29 of the Maharashtra Regulatory Commissions Act, 1998. Notices to enhance charges under the Electricity (Supply) Act, 1948, have no legal effect post-1998 Act; only the Commission can approve enhanced tariffs. The procedure adopted by the Commission was improper as quorum and participation requirements were violated; High Court was correct to remit proceedings for de novo consideration.

Parties
Appellant: BSES Ltd.; Respondent: M/s Tata Power Co. Ltd.; Respondent: Maharashtra State Electricity Board (MSEB)
Jurisdiction
India
Judgment Date
17 October 2003
Procedural Posture
Civil Appeal / Final Disposition by Supreme Court
Outcome
Appeals dismissed with costs.
Legal Topics
Tariff Determination, Standby Charges, Jurisdiction of Regulatory Commission
Electricity Law Administrative Law Tariff Determination Standby Charges Jurisdiction of Regulatory Commission

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Parties

BSES Ltd.

Appellant

M/s Tata Power Co. Ltd.

Respondent

Maharashtra State Electricity Board (MSEB)

Respondent

Procedural Posture

Civil Appeal / Final Disposition by Supreme Court

Legal Issues

  1. 1 Whether determination of charges for standby electric supply falls within the jurisdiction of the Maharashtra Electricity Regulatory Commission under Electricity Regulatory Commissions Act, 1998.
  2. 2 Legal effect of notice to enhance charges under Electricity (Supply) Act, 1948 after the enactment of Maharashtra Regulatory Commissions Act, 1998.
  3. 3 Fairness of procedure adopted by Maharashtra Electricity Regulatory Commission in devising the formula for charges.

Ratio Decidendi

The determination of charges for standby facility falls within the Commission's jurisdiction, as such charges are part of tariff determination per Sections 22 and 29 of the Maharashtra Regulatory Commissions Act, 1998. Notices to enhance charges under the Electricity (Supply) Act, 1948, have no legal effect post-1998 Act; only the Commission can approve enhanced tariffs. The procedure adopted by the Commission was improper as quorum and participation requirements were violated; High Court was correct to remit proceedings for de novo consideration.

Court Disposition

Appeals dismissed with costs.

Orders

  • Maharashtra Electricity Regulatory Commission to decide the dispute expeditiously, preferably within three months of presentation of certified copy of this order.
  • Commission to adjust liabilities and deposits made under interim arrangement by High Court in final order.