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

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

The State Government's policy directions under Section 108 'guide' but do not bind the State Electricity Regulatory Commission; KSERC exceeded its limited review jurisdiction under Order XLVII Rule 1 CPC read with Section 94 by allowing review and approving PSAs solely on the basis of subsequent State Government directions without pointing to any error apparent in its earlier order, and therefore APTEL correctly set aside KSERC's review order; the original appeal was restored to APTEL for consideration on other grounds.

Parties
Appellant: Kerala State Electricity Board Ltd.; First Respondent: Jhabua Power Limited; Second Respondent: Jindal India Power Thermal Limited
Jurisdiction
India
Judgment Date
30 September 2024
Procedural Posture
Civil Appeal / Appeal to Supreme Court Arising From Appellate Tribunal for Electricity Judgment Dated 26 July 2024; Original Appeal (appeal No. 518 of 2023) Restored to APTEL
Outcome
Appeals disposed of; Supreme Court agreed with APTEL that KSERC was not bound by State Government directions under Section 108 and that KSERC exceeded its review jurisdiction under Section 94; original appeal (No. 518 of 2023) restored to APTEL.
Legal Topics
Section 108, Electricity Act 2003, Section 94, Order XLVII Rule 1, CPC, Regulatory Commission Adjudicatory Discretion, Review Jurisdiction, Power Procurement and Approval of Power Supply Agreements, Standard Bidding Guidelines and Section 63
Electricity Law Administrative Law Civil Procedure Section 108, Electricity Act 2003 Section 94, Electricity Act 2003 Order XLVII Rule 1, CPC Regulatory Commission Adjudicatory Discretion Review Jurisdiction +2 more

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Parties

Kerala State Electricity Board Ltd.

Appellant

Jhabua Power Limited

First Respondent

Jindal India Power Thermal Limited

Second Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court Arising From Appellate Tribunal for Electricity Judgment Dated 26 July 2024; Original Appeal (appeal No. 518 of 2023) Restored to APTEL

Legal Issues

  1. 1 Whether State Electricity Regulatory Commission is bound by policy directions issued by the State Government under Section 108 of the Electricity Act 2003
  2. 2 Whether KSERC exceeded its review jurisdiction under Section 94 read with Order XLVII Rule 1 CPC by allowing review based solely on subsequent directions of the State Government
  3. 3 Whether allowing review on the ground of subsequent government directions amounted to an appeal disguised as review

Ratio Decidendi

The State Government's policy directions under Section 108 'guide' but do not bind the State Electricity Regulatory Commission; KSERC exceeded its limited review jurisdiction under Order XLVII Rule 1 CPC read with Section 94 by allowing review and approving PSAs solely on the basis of subsequent State Government directions without pointing to any error apparent in its earlier order, and therefore APTEL correctly set aside KSERC's review order; the original appeal was restored to APTEL for consideration on other grounds.

Court Disposition

Appeals disposed of; Supreme Court agreed with APTEL that KSERC was not bound by State Government directions under Section 108 and that KSERC exceeded its review jurisdiction under Section 94; original appeal (No. 518 of 2023) restored to APTEL.

Orders

  • Order of the Appellate Tribunal for Electricity dated 26 July 2024 setting aside KSERC order dated 29 December 2023 is upheld insofar as KSERC exceeded its review jurisdiction
  • Original appeal (Appeal No. 518 of 2023) restored to the file of APTEL for further consideration on grounds other than those covered by the impugned order