PUNJAB STATE ELECTRICITY BOARD versus M/S SIEL LTD. AND ORS.

PUNJAB STATE ELECTRICITY BOARD versus M/S SIEL LTD. AND ORS.

The High Court erred in applying the ideal situation test in tariff determination; actual expenditure and statutory parameters must govern evaluation. Cross subsidization is permissible but should be rationalized as per statute. The matter is remitted to the Electricity Commission to be decided afresh under...

Source-derived case information.

Parties
Appellant: Punjab State Electricity Board; Respondent: M/s. SIEL Ltd. and Ors.
Jurisdiction
India
Judgment Date
18 August 2008
Procedural Posture
Civil Appeal / Appeal From Division Bench Decision, Punjab & Haryana High Court
Outcome
Appeals allowed, order of the High Court set aside, matter remitted to the Electricity Commission.
Legal Topics
Tariff Determination, Judicial Review of Commission Orders, Cross Subsidy, Statutory Appeals
Electricity Law Administrative Law Tariff Determination Judicial Review of Commission Orders Cross Subsidy Statutory Appeals

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Parties

Punjab State Electricity Board

Appellant

M/s. SIEL Ltd. and Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench Decision, Punjab & Haryana High Court

Legal Issues

  1. 1 Estimation of agricultural consumption and transmission & distribution loss
  2. 2 Energy input and coal transportation
  3. 3 Manpower requirement

Ratio Decidendi

The High Court erred in applying the ideal situation test in tariff determination; actual expenditure and statutory parameters must govern evaluation. Cross subsidization is permissible but should be rationalized as per statute. The matter is remitted to the Electricity Commission to be decided afresh under Electricity Regulatory Commissions Act, 2003.

Court Disposition

Appeals allowed, order of the High Court set aside, matter remitted to the Electricity Commission.

Orders

  • Order of Punjab & Haryana High Court is set aside.
  • Matter remitted to the Commission for examination afresh with directions to follow parameters of Electricity Regulatory Commissions Act, 2003.