Karnataka High Court
Gmr Energy Limited vs Government Of Karnataka on 26 March, 2010
Bench: N.Kumar, B.Sreenivase Gowda
v Of the (f1011:"~:.1'im£:'01'1 of l11diz1. §'}1"a_3;-'i1"1g to c.;1.:z.-usl"1 %'i"1c' C1()\'!:?1"I'}]'}1CTE1L
[By Sri K G I'{:--,1gt12:v211'1. Senior :'\civ(')L:2.1£.e I'<;.3«i*-. .' L'
M/ D1,1z.1 ASS{J('.i'c:lEtTb', Ad\»'<.>(ratc.~s} V
IWD: _--
1 G()\s't'.1"!1}§1('?l'1i of i{arr1£:1'.azi<;a
Re':pre53e111ed by its Secrcrtzu' I
Energy Depa-11't1'1"1e1'1t '
Vidhana Soudha
13a11'1gI{21l('):'t- ~» 560 00$
2 Kar11z1i.aka Power 'E'19éu.=1s1"1lifisiiéin
C01';301"d1:i01'1 Limiied T V ' _- _
R€p1'(i'SC'nif3d by Us j\/I2i'ri:»I,_§;i1'1g.Di_1'e<.:;Lnf ' '
Cam'<3i"y B*1'1D"J.éifx'1
KGRmMflxj_.«
Bang21Iii)1'€ -O0 I"ff-- .
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U1'idc1"=i,:1ki1'1g; if¢:.A;u31'e:sér1t.Vt%*d by its
Ma11:=.gi'11g Di.1je(.1;. '*1'.'C.g1'i;1'v¢§1y B1'1avz.-111
KGmm_'_g&}
£3~:mgaio:"e_a 569 O0!
3 P()v.*C~r~C C.)'l"'D()l"i
4 / _§3a1f:.gzxlc3r(:' Ifl}€'C.?'i;'i"§~("SL1§)ply C(.)1'11I..Ji.-ll']_\;'
A ' I,i1'1ii%LQ£:4'1."2a._G()vv1'1'1n'1c;'1i' of fr{cs1't1z-H.;1}<.;-1
3 -V:2;-;;:xg~:~%;;:'i:mg. K R C.i:*ctEe
ET3«a1".vg2:.IV.<)1"s;: --»-9560 001
"R(3}')1'€f~;'$':1_'3Ei::*,(j by
"'44.Ge1';'e'r{av}.-€\/Ia1mge1* {E§§ecL1"1('a]] ...Resp::mdc1": is
" _ [By Sri Re1j€'m.-* I)h21va1'1. S€'l'1iO§" J7-'x{"i'v'(')c::;:':'.t= alrld
Sri Nag:-11'1'a:'}d. Se1'1i01" f\{T1V{.)CEl{(' for
M/ Jusé; i.e'n=v, AdV'()('fa§('3S for R2 and 3:
Sri Ashok Ha1*an2tha1}i AG and S11 Mz;mjz,1:'1aih
AGA ibr R1)
T }1e?s<:. Writ Peiit.i01'1s are file.-.d 1l!'1('i€fl' A1'tia.'.I(=s 2'28 and 227
Order dated .l--}~2008 (sic 2009} and dated at
}\F1I1€XuI'f:'-"A and A1. respectively.
In Writ Petition No. 4593 of 2009 (GB/IlIi"<E«S3_
BETWEEN: '
Sandur Power Company Ltd, " _ '
A Company incorporated under
The Companies ACE. £956
And having its Office at
#56 B/34. 13*1\/lain
Lower Palace Orchards
Vyalikaval _ V
Bangalore ~ 560 003-_ ,
By its Authorised Siigna1:vo':y
G. Murali. H
. . .Pe{ii.ior1er
fiag'l*1a«van. Advocate for
_ le.d'us__Law; Advocates)
AND:
1 State ol"'Ka1'1'1z=,1i7al<2l-
, .Repi=esen1ed=.by the Principal Secretary
A zto (}ovei-rnnaeni. H lllll N
. ' 2 , EneI'g;y'-Departnient
" _ 'v*:kas lE3o"ucdh.a
--_Bangalvo_re~f58O 001
. 2 l."Ka11oai.'al§a Power Transmission
_y Cerpcération Limited
C A. ,c_Kaveri Bhavan,
_ ll'-3-angaI.ore « 1
Represented by iis Chairman
And Managing Director.
ll by C' }.\/langalore Elieclricity Supply Company Ltd"
Corporate Office
Paradigm Plaza
A. B. Slieuy Circle '
_ _ V. Private Limited
' -.GEvSCO'<Co'a*p0rate Centre
A' Dhaui
Mangalore - 575 001
Represented by its Managing Director
4 The Karnataka Electricity Regulatory
C0mm1ss_1on C _'
6"' Floor, Mahalakshmi Cham!;>e1*s...e I
#9/2, M G Road 1 A'
I3a11gaI0re ~ 560 001 V y ._
Represented by its Ct1airn1_a'nV_ " ,_..;Respof:dems
(By Sri Aehok H£11T91§'dhei1l_i, AG
Sri Manj"u:_zna_'th AGA_.__ .t'c)'r-R1:
Sri Naganafzdau Senizor} Adwfioeatey for
M/ S Just Law, :"»_dV(iCa--'-is I'b*15v_'R_2;':
Sri An1a1"'Ku'rnfar." Atdvocatey F01'
M/"s«., Lawyersg me, Adx'/'0e'afe_e_..I70r R4;
_. = _vSe1'y*ed}
Writ__Peti.tie;'i'C«:.;i§filedyt1i1Ciett:VA1ffiCles 226 and 227 or the
Constittttion _ 'pjaying "to quash the impugned
Government erdeihdattetcl 30_~'1---?,--'2008 at Annexu1'e~A.
In Writ Pet1t_ienNes--, '9721}ma'é722 of 2009 [GM~R;f£S)
BETWEEN;
=. 70 .~ ~.Neh1't P.-Silaee
"NewDe_1hif'- 110 019
'«-..Represented by the Managing Di,reetor
Mgijlfien. N.S. Pathania (Retd.]
* QESCO Corporate Centre
70, C0z'pc>1*ate Centre
New Delhi ~ 1 10 019 ...Petit.ioners
(By Sri Ravishankar Prasad, Senior Adxmcraze for
M/s. AD Law Pa1't.ners. Advmates} E
//,.,
AND:
State of Karnataka
Energy Department
Vikas Soudha
Bangalore ~ 560 O0} .1
Represented by its Pririeipal Se%'.::i'e1.._z'1ry
Karnataka State Load Des_;5a1.Veh Cenifre "
Race Course Cross Road M Ad ' ''
Anand Rao Circle __
Bangaiore ~ 560 oo9.__ _ § .__ ,
Represented by Chief Engineer M *
Karnataka Power Traiistiiission
Corpor*atiors«1_,i'_mited I . . "
Cauveiy Bfhagvari. K G Road .
Barlgakire =«:56O'.._0O'1.V'~-.. '
Rep1'ese.,{it€?_d Nfanagiizgiiibireietoi'
Centre} E}e7e.t;°iei'é:y 'Reg'u!_a'£ory Commission
O01".
Chandeiiok BL1i"Iding'"*
36. Ja1'ipa't'he _ A ._
Nev.pDelhi"~1,10001
P.ep.resented Seeretaiy
V' " Power,
Gove'1<'rin3ei:.!:~'of India
"Shran"1--5$hé1l<ti Bhavan
A '---.iRa1'i'w:arg
A j Represented by its Secretary
' of the Cons1,i'éu"Liori of India. praying to strike down
New Deihi 110 001
...Respor1dents
{By Sr}: Naganand, Senior Advocate for
34/5. Just Law. Advocates for R2 to R4;
Sri Ashok Haieiiahzilli. A0 for RE]
These Writ' Petitions are filed under Articles 226 and 227
ihe (35.0.
dated 17vi2»2008 being Annexure~A. (30 dated 17» $242008
being Anr1exui*e«~B and GO dated .30wl2w2008 being ..~"\ime:-<ure»C
iv
{I
to this writ petition. as beiiig violative of Aiiieie V1W9_Li.}e(g3t: oi'VVthe
Constitution of Iritiia and being ultra vires the .i5?iee'tji'=it§it'y '7:'.'t_.t_?t.,
2003.
These Writ Petitions having been'hea.rd.,«e_o'ining"on for
pronounee1'ne1'1t of orders. this day.=__N. :KHA.l:'fl£Ir."' J.,,"f)I'Oi":i'€7).__1lI':i:ii_';x*'3Ci
the fo1lowi1'1§_§: '. « -- 2
0 R
in these Writ o;t1'e.stioi1s relating to
finer aspects ofothve N.;':':¢:;;;[ which finds
statutory the Eieetricity Act.
2003 as the obligation of the
C1OV€l'Y1.1':}1x.€l11', 'pirivate setrtor I pari.ieipai:ion,
delit:ensii1'gVoi' gC'1'1€Vf1.'t¢t['i:')q"1'i$.42;-i'}ti'ii;fl1.)}t3II1€I1E'.3.1i03'1 of the concept of
open ttetzess in i'Z'.AEtrV1VSVrI1iS'E5iOI1 vis~éi~vis its obligation to provide
éceees toieiecftrieity to all areas including villages. hanilets amid
Common arise for Consideration.
it all these Writ Petitions the petfiioners are
":e»hétiIie--ngirig the G-overnmertt Order dated 30. 12.2008 passed by
..j'th'"e--:Steite Government: under Section 11 of the Electricity Act.
'«. 2003 [for short hereinafter 1'eferred to as "the Act"') directing
them to operate and maintain ger1e1'ztt'i.ng s1.xai.ions owned by
them and to supply the electricity produced to the State. Grid.
'HJ
Though facts of each case are different. as the crli.a'}}e1ig§%';.iS" 1:0
the same Goverrmlenii Order and the point ill'./'O'l'V§3(Zl vil's=.p"L1reIy.la
question of law, 'they are taken up"fer"'cnnsidei*ai;iu1.'i ifOge1:h'ei-
and disposed of by this Common o1*cler. :'~fl'l10ii§};.l'l~v,lh€? grouiirl 1:1":
male: {ides is a question of i"EjC.t""i'.?.1iSt3Cl" in 'oi1eflciilfitllielse Writ
Petitions. it is dealt with :separa;te--iy.,.
Facts in WP Nos. 590 anciiegi. l
3. The 'these Writ: Pe1'.iti<)ns
a Writ of Order dated
:.1.2oo9"aiia Ani1'é§;'LiVi~es--A and A: respectively
by whiC}'{.,&h'¢4'_iii"stldirected to supply energy LO the
State Grid eii'<.,{h'Cvl"21l.€AA'-Ql;'RlS.5.50 per unit. from their E:3a1'ge
--vi.Mou1'1L5e.d:._P0wer Plian-i------a'i 'l'a.nnir Bavi near Mangalore from
~2_C)09 'May 2009.
facts leading to these Writ. Petitions are as
u'*_unden--.
first peiiiiioner has established a 220 MW Barge
"~,lVlC"'Lif1t€d Power Plant at 'l'ainii' Bhzivi Village near Marigaime.
being the successful tenderer in pursuani. 10 23. global ilericiering
process iniiizzieci by the G()\*'€i'I'1I1'1€I1E'.' of KE1i'l'1:::1l'&1l(&1 lei' sel'tir1g
ii,/H
up power projects in the State. The second pei}ii.ioheij. ":1
company trading in power. The first petit'ioner'i«was:'stippIyi_figV'
power to tie State of Karnataka Vthrougjh 'ti dr3i;iri£tive'--i'o\§=::i* 0'
Purchase Agreement which expired i0ri.VJti.1_'1e200'8.,. * . 2 iv 0.
5. The second respondieittr pijocturemehti
Company. namely the in the
riionth of October 2008 of power for the
period from Nove:ri7ii§iei* The second
petitioner for supply of power
from thet'B:?1rge; oisthe fl4fi1"st petitiorier with whom
it had betc:I< agreement. It offered to
supply 200'0'IViWv of'._13o~:.§}0ei-.«"00éit the rate of Rs.9.54 per u1'iit:.
PLll'Sv_?;1'i£'§it:I"11:._{.l'1(if:I'€1(). 'e.o..mmittee was €EO§1ST.iiL1[€C1 by the Board of
V':_VDire'<:t.ors._ofi the°!;hii"d respondei"it._ which negotiated with the
seC;or1'd.7petitiporipeii and it was agreed that power wouid be
-Vsuppiiuedz to State Grid at the unit rate of Rs.8.85 in the
"'Vi1*;oii'th's of; December 2008 arid Jamiary 2009. A letter of
._t1f.I1T:;(-'.VI1't was issued aectordingly by the fourth respondent. on the
a_uiIi's'tructior1s of the third respondent to the second pet'.it'ioi1ei*, a
0 copy ofwhiczh is produced as per A1'111exure--B. In }.)L11'S't£2;11"£(?£i', of
the said 1ei.ter of interii dated 14.} 1.2008 the setroiid petitirmex'
the Expianation to Section 11 has to be read ejLisc_te:ii'
to the preceding terms. nanieiy threat to seetirity oijthe St;at;e. 7
pubiic order or a natural eaiamity;"tis'ed in thee:z_pEaVrié.tioi:1.
The {aft in the fuel prices and its: Saiiegedi.'§'7:;iitt31'e:
petitioners to produce doeurnen._t_éry evidenee--._I'or riotiflreducirig
the prices Wiii, by no stretch oi'-----i--:Vne..g;:ii'rI':=i.tior1,fieovnstitute extra-
ordinary circumstances to Section
11 of the Act. _:'T_herei"o"re,' the impugned
C:overnrnerit_Oi'-'d<e1t_i3§: is titiailfitihereiii is no extraordiriary
circurnstance"as::'en3.{i_sttgejd i1, existence of which is
a eonditi_on._exei'c:ise of power uridei" Section
1.1. The is "severe power Crisis" in the
State. The Governiiiiemt: Order is issued for the purpose of
"{.£21l'iff from the negotiated rate of Rs.8.85 to
Rs.E3.,c50" pei'~..unrii.t;'.-_fl'here£ore, the power exe.i't.:ise,d is whoiiy u,Et.rei
vires*-the power conferred upon the Government. There is no
it "'«.__Vjusi:ificati'o_1i for the first respondent to resort to Section 1 I of
Therefore. the imptigiied order is iiiegal, eiezirly
VS _ain_our1t's to mala tide exercise of power zmd in fact is 2-1 fraud on
fpoiver. The power crisis in the State is not an extitiordiriary
eiretirtistanee as envisaged under Seet.iori 11 since the term
"such other circuinsiances arising in the public i11ierg:sz'? l'(J1:i1".1d"i'.11
the explanation to Section 1'11 has to be read e_jii$:"ie:i'ijgerzeriizio
the terms appearing inirnediaieiy pif-::t5eci'ii1.gg t.1'1e17ei._o'."'l_i is'-sliaied
that the Government is facing CTYUIICHvSilI;!_._IaiiiO11.3116»i'}EiSn{;l't€d'iL
to be a reason for invoking Se_§:'i'i~on ll of' f.,l1e,/--'lei'."" '"Se\roralV
States are facing acute Si7':.{.)1'fl'"21{H:lG'i'Vvi5i§V\lé":T__$L1fa}.$ly'£li'1d Qi tl"ierefore.
scarcity of power is not which
enables the respo_n'dv¢nis:'io'Vifiégpfil of the Act. The
fourth I't3SI)(3'.v.l1~ClE'L3I:1't'AA:.:1:3.8 ieoniract with the first
pt"3iiLiOl"it lf'f_(VZ7>v]"' an agreed rate. It is on
the baisis of 1._1i';e' first pe1.ii.ione1" has al1'eady
negoiiaiecil bar:l< for supply of Naphtlra at
fixed price.with'"13PVCL and the consequences of the in'11.)i.1gi1ed
Government _Ozt_cier will have a cascading l'ina1:i(:i.al effect on the
Ap--etii.i'onAe'r:,4f-,fi'i":erci'ireei,ion issued to suppiy electricity to the
Siaie'-«..sGri._'3E rate of Rs.5.50 per Linii is not relating to
operatingaiid maintaining any generai.i:ng station. The power
"(oil 'ihe_,gove1*ninei'1t to issue directions is Einiiied Io operaiing
,ei11__ri maintaining the generating si.ai'io1'is. Fixaiiion oi' i'.ariff is
{riot relatabie to operating and mainiaining gene1'at.ing siaiions.
Tariff fixation is a distinct and separaie aiti traeezible to the
H1
function of supply or wheeling of power to aim._elisVtr'iih't1tZijn
licensee. i.e.. E+3SCOl\/is or the fourth resp<mcleniVin the ii'isI.a.i1t' 7
ease. Operzitirig and nléliiltaiiiiilgV'£1Wge'1T£:'1'a.t.ii'1g _s'ta_tiQn'*Vi's an
activity distinct: from transmission, l'diS:t.~i'ilDLI{lO.i1.'OT». ti'etc--i,ii'1--gM iii
eleeti*ieity inasmuch as the 1at.t_e1'=~,_aCtit5i£tes ~If6lCf:Lii'VI':§i'llEi" licence
under Section 12 of th;e Aet. oi" lé1i"i~§Tf" which a
generating company a distiributor Oi'
distribution lieertseeh is to operating 01'
maintaining_€t..éeheifs't_i11'gl:stsitipnJiijelseheine of the Act Clearly
provides i_'Q_iflsegileli-ifi.£;§f of tai*iff. which is
outside the it »'lol;T"Set?tioi1 1 1. _'l'l"1e app1'()p1'iate
G0ve1'hmei"1~thas .110 to d€i(31"i1'1lI1€ the tariff.
which ga"generst'irigleeriiiiahy (22111 charge. The 1ia1'iff oi" Rs.8.85
pizrettizit héis _been determined through a transparerii. process of
l3idci.inglAlwh'ieh aeeordarlee with the guidelines issued by
the AC-fjI"1ti'_.EIi' Qeifiernment eompiying itiliy with Section 63 of the
whiei2...:,5a.rii'i' is binciingi 'i'hei'ei"o1'e, for the balance period of
it to 31.3.2009 of the letter of intent. ciatecl 14.11.2008
l_the§firs1, respondeiii tiiearly has no a:ithorit"y or power to alter
:.the same. With respect to the period Stil3.'SC"qiiC1'11. to 31.1.2009.
the bidding process is already in progress and the present
the Cen'trai Government that, would be an «y...f,?\'1);§i'eij:1fiate
Government'. If 21 generatfilg C.()n"1})ar1Y is at stiiiljliei' :i1'i.te1'st'aite.
then alone will the State Gtiveiijlinent. be e'in_Vl'21ipp14()p1"ia'te
Government'. The first petitioner mi no obligaiv1':ioi1 to ;~.'su-ppliyyy
electricity within the State. 'Fhe.._iinpL1gi1ed._oiederv_;isl"thus ivliollyl
without jurisdiction asyethe yState".olI"-»_Ka1*1o1éi'taika';l the first
respondent was not an Gv0'\t_€iTi1Ii'3€l1li' in any event
after 3: 01.2009. "
9. _furt'he1f"eonteiided",t.hat Section I0 of the Act.
casts aV'iCilut,y'eAi.ilpon coinpainy to "operate and
maintaii\l'S€"tI1€ lplant. generating company has the
autonomy tew. stippiy 7.electricit.y to any licensee or any
" v ieons:;1h"1er_,_. There is '1'*~--a------powe1' under the Act to dictate choice of
0.'-.coa.surnAe'r__t;o l;1'vrg:en.erating company. The supply by the Traciing
coriipany. tiie'j_second respondent. Cannot be trea.t.e<:i as a legal
'0bligat.iQ.1'lll'Ql'v the first petitioner. In any event. even that.
iobiig'lat;.iyoi1llended on 31.01.2009. 'Ytiei'ei'tire it was contended
Xfrhat the first respondent is not the 'Appropriate Govemnient.'
the purpose of Section li of the fket ziriti hence the
Hinipugneci Governinent Orders dz-it.ed 01.01.2009 and
L\/ /, ..
30.12.2008 vide Amiexiire~A and A} are iI'1('.Oi}]}§€,tVé'Ii:t'v.tifid
without jurisdiction.
Facts in WP No/$693 of2009:
10. Petitioner is El g€i'i(j'i"?}til'"1gV'CQI'i}paI}j}.f'"1"i£i"~!ii1g i'viin_i°.
Hyde! Power Plant with a of 22500
kilowatts. consisting ceipacities of
7500 kiiowatts eaeh. as 'Renewabie
Source'. within;~'ti1ei.i%1eao,_ii1gL Procurement
from Licensee} Regulations.
2004.
11. he p5'eti't'iori--ei"".»t.entered into a Power Purchase
Ag1'C:'B'4I.§t1'(3'VI"1i.CiE11€?(Vi-342.2004 with the 2"" respoitderii:«Kariiat'2:1k2i
Powef 'I'réo?isrn'i'3sion Corporation Limited [hereinafter for short
i"efei*i'fedA in terms. of the said agfreemei1t.. the
petitioneIifiigreieci to supply the electricity gei1er2zt.ed by it to the
s'e!jond i*esf)()iident. The second i'espoi'idei1t: agreed to receive
Vth.e..e1ecte1"ieity made avaiiabte to it and to pay for the .=same at
i uI_13_€'E1'Eit€ of Rs..2.9O per kiiow:--.:-ttt~hotii*, subject": to an esealat_ion
«of 2% p.a. over the base tariff. every year. 'I'E'i.e second
respondeiit. agreed to pay the petitionei' the amotmts due
R//.,
Belgaum. Ka1'na1.aka and as such it is a gei'ie1'at:i&ng,<fonipany
under Seciion 2[28} of the Eilectricily Act [he1'eiI'ialler"e{oi "sho_i'i_ V'
referred to as 'the Act'}. The Sai;'.iW'f)'UWE31"..'})lai'il'"i::5 iwlilailléfs V
commonly relierred to as a 'niercfiarri-._1f>ower ._1..3i~an£"'
electricity SCCKOI'. as it has be.erI-._se1 Lip by pri{>~a{e"'capital§'
without any Geovernmeni. .suppo--rtuiai3.d'"does 'noi-lizwie a power
purchase agreement ;:ow_ned disiribuiion
company. Mei'eli.an_i; poviivelr ro sell eleci';rici1.y
generated 01;.'LIrr.eii'rcliV'oic:e upon mutually
agreed terrns " is also an ini.er~siaie
trading ,»'a's.j:'s1_2(:li licensee, £'lL!Ih()l'lS€d to
undertake i"i=icter--s-1,aie lip-i;:i=cii';1se and sale of electricity.
_Ti1.e petililioirer s power plant was synchronised to the
eagridonce It has been selling power generated by it to
disI.rib'ution'eiikensees under the existing sho1'i.--t"ern1 open
'access i:eg'igrne. During the relevant period. ihe peiiitioner was
.¢_'ng"ag"ed in selling elecl;riCiI;y 1o Reliarice iiiieigy l.imiEed {RE J4
*~'a distribution licensee in lvlurrébai City, under their contract:
25.10.2808. whereby REL agi*eed to p1,El'Cl1&iS€ 5 MW of
power from 131- to 30"' of Nox-'ember, 2008. Thus. the petitioner
was engaged in ini.er-state siipply" of ei(:<é1.i'icr{.y. which was
by the State Cioverilnlent by way of the i11':;)L.1g1'i(:=d G()V(i'2f1'1II1€I11
Orders.
18. With effect. from 12.1 1.2008. _.Ka1;_n;11a"i{§1i.
sa
started 1'efusing Coneu1'1'en(;:e for int£§1'~s1baALe j<)p<j:ri ;;{(:--ee'ss"appiieid
for by generating COII"1paI1ifi3S' and "wading _lvi7een ses. The",
petitioner learnt that the Siat.Ve_Cr)vernn1ent*Waisi going to
purchase power frorn gene,i'a1.i_ng.g _S1.:»;:t..1(_3.11S..i'<)1" n1eeEi11g its own
requirements. and it: was to 'i£'2:;Ci}'i'1.:11t-3 i':'i"i§f.'§3>i;E:'§.i}~lE1SC' of e1ect1'ie1'ty
by the State owned diS_tribL:.tfior:«. e'o1_'i-1.p_£_.i_VrV1:1;es from generating
sta1:ions."'te}ia*i._i.i1e K'Vé;f1'1:;i'1'.a1ai{a S£,EW)'C/I{I9'I'CI. had cieeided not to
grant ec5ij1e'u41_'1'e11_ce*,"1i)1".i.ni:e}f¥;:{211.c: open &1C.'(',('.S.'I-§ 1,1'ansae1.ior1s
involving out}fl_ow of eleC;.lj.rieify from the State.
' \\ ~ 1'9E:"'i:'T5e.§ienia1 open access by Karnataka SLDC, when
Aadm_i~iit.e'd1y,~_o.t:'l'ie§:'eV.rave1'e no E,r.:_msnaissio1'1 (':(ms1:'ai1'at.s. amounted
to av,deli}3e1'_2%.'i.e vioiation oi' the p1'o\.-flsions of the Am. The
'pei,1'i.ior1e:fV__aiiled a pei':i1.1'on 153/2008 befo1'e the CERC under
' "'E=eot_:i_or";' 79 of the AC1. praying ir1t:e:' 211121 for an order c1ir'e(:iing§
Vjthei Kai'nai:a1{a SLDC to grani open access-3 to the pet.it.ione:'.
' 'Accordingly. the Ka1'na1,ak2a SLDC / KPTCL :1 ecorded
czoneuxwemte to the petitiorierks 1'rii.ei~st'a£e open access
. Government Orders.
appiieation and the petitioner was stieeessftiiiy abietiz .$'(:h'edt!V.i€*
power to NUS Reliance E3nei'g,y Limited fmni
25.12.2008 on 23.12.2008 as per A.iine'Xti1'e~:--.G. .;«I-i0(5\}a%e\zer'r"01Tit:e
again open access was denied to the«pelt-i_ti0r1e1'.011252i2:_.200E3.,
It is thereafter the impugned--.a.1if3iibfiea.'{ion
whereby it mandated iieempanies shaii
supply the exportabie Though the
earlier Gove1'nine_nt.__Orde'r pei'itioi'ier's unit.
this order hast aiso. in the
fl1€aHWhii_0,V7VC'ER'C 5«1;;i:ja$.se.;_:i"::1_:rV1' ("Jrcier (511 22.1.2009 dii'c:etii'1g the
Karnataiga ._E';i.I)Cie"=t(5"t a(':eei"d 'r:0nCu1'rei'1ee to open access
appiieationsof the 15Ct'iU0i'}»€l' therein . i.e., Reliance Energy
Trading"Limited"; .. Ciovernment of Karnataka filed Writ
020703/2059 and 2733/2009 before this eoui-i
dated 22.1.2009 passed in petition No.
2 ' Ai58/2008 were ehaiiei'ige.d. An ex--pa1'te order
2z8'.v.iE2009 staying the operation of CERC's order dated
was pas-ilsed. 'I'here.I'()re. the peiitioners have
V""'.,VpvIf<'if§E'<3I'i'f:3C1 this Writ Petition chaiieiigirig' the af01'esaid
29
20. T he second respondent. has flied det.21iLe.d4'ei,;iie<%';nVeI,1t.
ofob_jec:'u'01'1s traversing 2,111 the aiiegations in th'L-:._:\'Vv15i_1;w.i5c:i'.iii;e11
Nos. 590 and 591 of 2009. They c'O>1§V1.e1'1d'that«i',h'eb«.EIVeVeiricii0y
Act of 2003 was enacted to e0r1s0:i'ic__1e{1;eA.£he .'1_¢§xxé'~.reizitj'rig0{0u
generation transmission, distribéiitiroxa and oVf;eVIeVei1'iei[y.V
The Act was enacted gfrld 0'i«i"'i}~;1S.~ffJme into
effect from 10.06.2003. with various
315P€CtS P€FiE1i1?i1:1:gv___ to 'v;:V'Ee:"(:1:rieii.y and the
procedure 1.1 empowers the
21 gerzerating company
shall operate amci I}"lE;1i11{'c1i§1
any ger1e1"e1tir§1!'g with directions issued by
GoVer:;jr"f1er1i. The.__eXpIanatior1 specifies that the power can be
pubkie interest requires such é-'tCEiOI1 to be
of the Act. deafs with the power of
_ a;.)1;)A1"('Jp1'iz%.0__ife er;:')"rIA'1111issi()11 to of£'se'L the adverse fir:a;1(.:ial impacxf.
0 c:ii'1=eteti013s "issued under Seeiion 11(1) cm a generating
_ Company.
21. Section 2(4) ciefines 'appropriate commission' and
Section 2(5) defines 'appropriate Goverr1mem.". Except. in
respect, 01' cases specified in Section 2(5) (21) of the Act, in ail
%,V/"''
w
"Act, it. is clea'1""'thVat matters concerning the generating
'xcomparly'--s_itu.ated'--ii1 a State other than those which are owned
Sitransniissiion of electricity. the State grid. the State
i~i{r°a.nsinission utility and the State ioad dispatch centre are 211}
...'-regt1iat.ed Joy the State Commission and the State Goverriment.
it terms of Section I 1 of the Act. the Government of Karnataka
30
other cases appropriate GO\.!6I'l'1}'y1€I11, would
Government. Section 2[28} def-'mes
mean any company or body corporavtemor'as_sociatioii«or
individuals whether incorporated ()iA':4'I__1(:3:'i.VV_Ab(1"
person which owns or operate.sr"oi"
station. Section 2(-47) d-eais w.it"ri oiiopen} access to
mean the non~disc1"iniinatony:_.iid;:'o\ii&sSivo'i2:.VS"for ihe use of
transmission iines:'o.1'_ iaciiiiies with such
lines or systerii coinsumei' or a person
engaged J gzerieiratioriy. ii 1. th 1-eguiations speci fied
by appro.p1'i.-ate .Co'r:.a.'iniss,i»o'iti.._ --.
c'onsf)ect:us of provisions of Electricity
anciAy'cont.roE'iie__d:: by Central Government, the intra state
is entitled to give directions to a generating company situated
and operating within the territory of Kameitaka.
23. The first petitioner is 21 generating_-:r1.:>1'11pafi'3.*..rii'i.--_jar--.
private sector and therefore not a <toir;pa1i'1y wliich'_('aii- be said"
to be owned wholly or partly by the Ce:i':u§al0Golverrii5i'i{:'n_i 'mid
therefore is amenable to the }:i1*i.sdicLior_iofStaleA._{}oyei'r31i11eri.1;V*
for issuance of directions under Se'elior.i l I of the Act}
24. The State reeli1'1g' under
power Sl'101"LE3.g€'.u exi.ra»oi'di1'ia1'y
levels. while. year 2008 was
expectecl_f:o.ebe" supply available was
about '0e1'1ormous gap of 2300 MW.
which wouldfltrra Ai0r1€.oks/bout 40% of total energy available
_ and ;_800/oeA.o{' tot7'a'l.._V0c:1erna:;1d in the State. The siE:ua1,ior1 was
cor:2poL1n{leLi.4A't;y reduced availability of water from hydro
gene-raf.iii;;.0'l':-giatioiris and redurrtiriri in power availabili1,y from
_ Ceritrzil Se'<i1oi="'generatinfg; strations. Such unprec:edeni,ed clei'i«;:it
sit§£ation"V-'led to lorig hours of load shedding in the Slate
0' o.Goj§'e;"mnent of Karnataka has been monitoring the si1.ua.t,ioi1
was taking steps to iricrease the power availabiiiiy.
" Discussions were iriitiated with stake holders. which include
generators. transmission Lililiiies and distribui,i01'i utilifiies to
%/''l
trading company. In View of the same. the 1)et.it'iog:}.._ir;» fjjafas
the 2"" petitioner is concerned. deserves rejection"-i_n iiVmiy1"ie. "
26. The State is passing throu.gh--:1. :'c1'i'::is-inthe:t'c1r'nij_()l'
deficit power availability. Such' d.eficttd'v.rotild af£'eét,.;the"St:3ate in
all aspects. Non-availability"vof _ypo\tIe1'..VV:lytrouvlfd reduce
productivity in the '»CEi1llSC'. liardsliip to
all categories of eohsunier, 'activities. It will
also adversely of the State and
Central that there was an
a'freen1ejnt Witehftghe VsV{eCo11'd.," etitioner for su )E of ower and
that there.werenegotia1:ion_s"'being held for reduction in cost of
power due totiie' 1'.€vvCiV":1CAl'.'iOVr'1"".i11 fuel price to a great extent. the
"said independent of the action of Government in
V'--iss'-axingypgeiieijatxdiretiztions to all the power generators in the
State power to the grid. The c:ont.ention of the
'petitioners'«._that due to failure of r1egot'iatio1'ts regardirig
ifedoetton in tariff, second respondent has approached
'--fGoVerr1iiie11t requesting for an order to be passed under Section
the Act is false and is hereby denied. While fixing the
tai"ifl'" various factors has been considered, It cannot be
contended that due to l"ixi1"1g 01' price. the 2-ration of (}ove1'n1'nent
r_,_
'J:
is vitiated. Such an aigtinient is absurd and L1r1s_1zsVtai1";2:i}3Fe.
The Govemnaent order is selil explaiiatory. The rej1"ere1':ee--_rto 7
Section 63 of the Act is not tenabie""a's«stai.t.eci;éb'o.ve, 'iia»'ii'1g
regard to the acute shortage in power, genera}S'dii*eetior1--s."h;iveVV
been issued to alt the genei'ating"~~e:ntities__to-..s:i})t5i§"'§3'oitrer as
per Government directives and Vli?j"i'S-.li"i'(-}E'VVE}§)t3(T§fiC?'E1i'}fg/ in respect of
the petitioner alone. The "am-en' is :_1*:1V p1.ib1i(_r interest and
rivate interest tra:dei'"'shoutefvieiti the Ea.r>'er aubiic
interest.
iiii ""i'i":A statewtradiiag of electricity. open
access is'.not_ respondents herein. Oniy a No
Objecti_o'n Certifies,t'e A1sV'g"t'anted if there are no system
"'~..c_oiis._tr$1ii?.tS. Section ---- -«ii does not Si.i}.)ti1Ei1.€ that directions
W,c:eannot_ "be"_'issued in cases where there are existing
ai'i*angeniei1t;s';_ The order issued is general in nature and in
ft-'iew oi".aciii:e shortage of power. the order is issued in piibiic
,.intere'st.
28. The petitioner has not produced back to back
eagreernent which exists with BPCL and it is a matter of
Common Imowiecige that petroieiim pricjtes have been reC."Et:eeci to
3 (1
a large extent and the endeavours of the petitioners hei*ei'n isio
make illegal gain by ehai'gi.ng exorbitant. i'21t'4es_..'i'or
generated and supplied to the St:aLe,e.111':itiesfi .VChi4'L€'{V3T.l"()uI'iu
issued under Section 11 is to the genei'etiiig'~Co';npan3;;'*~fiiiiie
agreement being referred to by the petitioiier is <:§rie»...w,rit:h t;heU
trader. The direction issued is I'1"(",'3Vt§V..vt'.O'..E_',1'1€3 gen-«eifaiioifi to supply
power at": the specified _Ad_ii1i;.t.t.edi3E,'there was no existing
ower urehase a.§ZI'@CII1 nt-.w'ii1,hV--!he 'fei1eraJ'.'tir in the facts of
P ._ . _ _ _ _ «V
the present. case. 'iE'h'ereto*re.i;itVis tintei1.'«ii)'1e to contend that: the
price of power hieing sitippiieid .h21's heeri i'€~d€i.€i'I'}1iI'16d by the
Goveri1n':e11t;_ order."in'view_«oif._ti"1e same. the conE.ei'iiions to the
contrary zir'ee4wiho1I'y The avermentis that" suppiy of
poweijieit ,a1 pE'3.V'i'{-,.i,§.'V.'LV.1i£'tI' tai'ii'f not an zgispect i'ei;:ii.ing to
oj3eraWtion'" sand"._rnaint:enanee is false and is hereby denied.
There' is I".-c§"~«x{ioii2ii2ion of principles of r1a1.tiral justice niieged.
While'«i.exe.re'ising stattitory power. the quesijon of hearing; each
riiayei" in'i;.ii.e field before passing a geiiei-2:1 order of the nature
_do.es».n.ot' arise. The petitionei' is tryirig to eoifitise the tariff
_f;;;<_éd in respect of the agreement. entered into with the trader
«eiid the tariff to be paid to the generator to supply power
ti//..t n
'J;
«.3
pzlrsuam, to G0ve1'r1n'1er11. Order. 'I"'hi$ is untenable. 'E']1"c.1"efc_)re,
they c0r11.end that pet.iE':ionc31' is not entitled to any 1fg'jEi':*:>_f,"' ~
29. The same objections vvere _ad0p':{.e3d"*~ by
resp01'1denLs to oppose the othtsr t.w<i_W1"§.t.. '
30. The two G0verm1'1Vcr1_1°=O1'de1'S ,wr;i.§j1'1'-._21i*:':V"i"11'1pVL1g11eCf'
in the Writ Petitions read as urxderti}-_ '
PROCEEDINGS OF THE GOVEI €N_MENT OF
Sub:- SLLpp'!';,gQj'po:u2er by G€Ii€'I_'b2~l'O'('§: in Karnaiiaka
to. "l,}'1<€5:S1'i;_Z1Ifc-3 jGriL:i~iss;e,t:{' of Directicms under
i$'ec;i{)!1. ":1 'I=.Qf EZ:er:lh".£?iAI,g ACIJ." 2 003.
.1. I'{{;Lr"r'2 a S(3l.3€,'i"€;' power $;h.orIficzge
' in .':'J'1.1;z._ ;{,tVcar&V20082009. There is u gl.an'.n.g
V tfI.c3{7'1az'1d V;H.g'l£ppl'lj gap in the SI:'a!'e. According
Energy. Power Surue?_L} of the Union
'V ' (JfPOwe3r. in 2008. while a'.emcu 1d is
. c§&j:2e*c:i:c?cI L0 be 8228 MW. supply (5 Q1' I:h.e;=
ordrgr Qf 5393f-) MW. lcaading (.0 a gap Q/' about'
2300 M W.
§\'.>
'1'f'1.e energy a'.<gfI'.Ci.l st't.uan'(m has been
ac'Ce>r1lu(1.1ed be-2cau.se Q1" the poor LU(1£.(-BI'
1'rgfl()L.us ('0 the mqjor lmriel r(3ser1.>()1'r:fs Qj'
Lin_qanamaicici. Supa artd Mrmi !f)cu'7"1s
5. Demand for power is expected. to irlcrease S
the period January .2OO9W1Vo 1'/1'C1'L_;" ua'i'zEi1'*_
the onset of the summer rrroi
short. of the demand po';;;.;Ifi(3r2. :
presented beio LU.' "
March Re:;'t'r':T.e£ed."V " jé A0'0:LjlabiliI:y" Vhf)e/'fez': in --
demand. in MW if_gW " L W MW
January 2009 5888.74" '--v#;;35_4.35 1534.39 .
February 2009 ..-9:79.03.' 4354.35 1824.65
March 2009 .. 801315. 42271.41 1741.74
April 2009 H ..m_._'_57e4.33 3;: 34188.47? 1575.86
May 2009 , '5e.8I--.39e. 4189.472 1482.92'
5. in demand is
V A u 10%. The problem is
" .,_g9 arrl"io1'a1dr"Er;' 'during the peak Iunxr (GAM
9 AM.. H.,'/ 7'. {o IOPM} lL}}'1(;'H. peak load
.5jLLrgeA"o<:er.:.r_<s and ccmnor; be n1arza.ged Luizll
:.i1ue'--exis1:ing power aucu'labz'.iity.
iiVe.o>$.?;dte Government has been int"er2siuely
" _ {he power defieif Lira Karrzataica on
dregular basis. In Jlily, 2008, {the Cabinet.
: set up (1 SL119-cor11n'1£t:i'ee Lo monitor the power
situation under the Chairnmnship of {he
Hon'ble Minister' for Energy. This sub-
committee has review >d power duaz'la.bL'l.z'.€y
and diSi'I'ibLLIiO1"I jrom time to time. 1!, has
irrzpiemented C: series of measures to ensure
effeeiwe load r'nar1c'Lgemer1I and II?iI'2iI'?'2{.£i?'2
Nooernber 14m 2008. All Escoms have
the hottrsfor the three phase and
disrapiiorz of power in the State. For £'.h_.e__
period November to December 2008,
SLLIBACOITIFFIEUIQG has rest.ricted daiiy
consttmption at 105 MU. Cor1sider'irig.:tfjei"'
iikeiy shortfaiis from at2..aii_able;'iaevrieraiione'
and the share of the:;__Siat1e 'ff'r'otst'i':'.Ce.riirai.te,__ f
Generating siat'z'.oris. . V'Si.tb-c*br).'r:'1rnit tee A'
approved a Course» {):f"i'_~1"C:liOI'iV.(.3j:_' t)ztyVi:.1:gV'"':;tp"'it)
500 MW Power. TI1is_Tp!,trch\cLse.hwcisvu to plitg
the gap betvtiaeert deriiari'd...suppi_LjA to the
State. As an"aaaii'ioriatV f?"I'4:E37CiS:cJ.TF(3"__V0f energy
I"f7.(1fitf:."_g.g/"v1fTl6'f'LVT'.','VV' vCa§3.l1r1et}'. '$xLViV.l';)'COfTlI71i'i'1.(3€
apfi5r0I2edVa.. pro3u_ision_of 'St:'$c"':'"iottrs of power
ore" ihree and six hours of power
on in the rural areas to be
.oaf1_ the indiuiciuai Distribution
Cotfqaariies {ESCOII/Is} according to a definite
time tabie.W7'his measure has come into effect
'5ir1gZe phase power siippiy that will be
available in the rural areas. The aoaitabilitiy
of power in the designated areas is being
cioseiy monitored at' the State ieuei, Minimtirn
description and proper provision of power
are the objectives in the sJ'iort'-term
I'?'i.Clf'I.CLQ'€I?'i€3T1I.. The Cabinet" Sub Committee
ft.trt'i"ier rem'eu:ea the siniatiort on :30:
10.
Access and are exporting power
State. be made available to the SL'a.--::e :"
When. this is facilitated, nearly 500, 1j'1r.4w'--.,;g/i.
power will be available to':=h_e'--«oSL-ate;
State is also aware "U'l:tf!,IIV " JI'f'1e'-- e.r'1u1'r1<':'_ '~. ''
ecorlomic ir1:'eresrs»'of.;he ge;-1_eraror:;are to_Vbe
borne in mzind. in c()sVIts.()'f"1'.ap1zt:Ig'jk)I'
poLuer'ge11eraInior1. VV . «' V'
The': proposal" purchuor the short
term fr: view c'.?it'ieal".lpO'LVoero=Shortage in
the and r'teefi_"ro_.__aiigrnenr short-
§L'e'rr71_ ;o_eri{e:'ator's in me SLaIe
has'-beenn reoieuieaf Government.
$ec[£:'_on_ ;IA1 rihe_' Electricity Act. 2003
prov:-'aie'sV __TVTA£h.e.-' app ropr1'aI.e Gouermnen I
Einay. specA§)'y' '(fiat a Generarzhg Company
sha'Ii-.. in e.>ciraordinarg,r c;tircL.mrsI'anceé3.
operate arid maL'r1£"ain any gerleratmg sration
ir'z~ accordance wiirfl the direczfiorzs of that
V ' 'f'_G.oVI;§err1menr.
a matter of policy. it is in {he public
interest. to mitigate the severe power crisis in
('he State. Accordingly. aif generators of 'the
State, are to run their planis to full
exportabie Capacity and supply all the
eieetriC:'Ly (ha.-3 gerlerated to the S{C1.{.€ Grid
for the consumptmn of ail consmners of
Q
on is id e '
43
eiectricity within the Stme to bridg;e_""£ht.e
demandeupply gap. Hence this ordefifl" V 2
o-OVERNENT ORDER No. 54o'1';?C-5; 2005;," 'V, O i'
BANGALORE, DATED:'"30iJ_2=2OOE£ _V ' ..
In the circurr'LsL'c£n_ee§; eXp"!air:Ve_ci.O"_ frr1':._;""£;'1e*
preamble and in exercise é'j7._rf'1e_Vpozoersteon/'erred
under Section IJVo;'1._the the
State Government Ltf'LejoiIou;i.ng
directions infhe pubaiic..in'£eres'1=_urnififilrrtfier' orders:
a) generators operating
" s--n.ali operate and
""" H ;'}.;;;:;:_u-;.;e_:fr.fine Afienerating Stations (.0
" ';n(:i'z;a:V1f':711,Lr7': exportable capacity
Ob} . /iii' gene-~ra1ors shall supply all
A.e§€_oorLc::bie electricity generaz:ed. to the
s:(ii'é"o:':a, in view of the ext'raorc1.1'r1aIy
V "CiI'CLUTlSZ(1J1C(3S.
BY ORDER AND IN THE NAME OF'
GOVERNOR OF' KARNATAKA
SD/-- 30/ 12
(SJ. SAMPATH KUMAR}
Under Secretary to Government
Energy Deparirnent
1
' Mdnga£or'e. indicated that it would not be
j:5o3g§1}'qle'fbr them to reduce the prices as they
0' ."f';az0je0er1tered into "back to back" agreement
45
Dec. 2008 and Jan. 2009 (Thejirm I'1_c;;.d"' V.
offered io supplyfor November 2008).:*~Av
was also issued to that effect.
Further, MD. KPTCL }'1cL€0A1ir1.]"o;;079Led on
date of their ofler I.e.';'--~.§:30"" 0c'I'ob:erf,
Naphlha price was0R.s_x.046_.12<;i'per'KGVVfand
variable Cos":~..pUOrkiri§r" per
unit. A£r:id§.(1 has also
reduced the vim}:-o_r:'EVDL:£y._of051}5Naphtha to
0% ~'L2;:rjr;l'e.1'r'e::z' fr:on{ 7i'Ié;2.oee_...7
____ H Nego':£c1z;1'g'_ons.,_"' held wiI:'h the
s. GMR Energy Ltd...
hjiiorigqiorjje._or'z~._08z:.12--2008 by the Commz't'Iee
corisvtihtz-ed',vfo'r...u-hegoziaiions headed by the
MD)' M/s. GMR Energy 1.mu':ec1.'
0 with M/s. BPCLfor supply of Naphi'ha a: a,
fixed price and they have got paymentfrom
BESCOM at {he LO! rate or Rs.8.85 per unii
for December 2008. Meanwhile, there was
steep fall in the prices of Naphzha. from
Rs.46.I.24 per kg {on 30"' October 2008) to
I€K<5.23.170 per kg (or: 16"! December 2008}.
The G0] have aiso broughl down Ihe import
E3?//,...
we
cat
46
duty of5% on Naphtha to 0% with e[]"ect_j'}'or'r1.__
7"' December 2008. M / s. GMR Energy
Mangatore was requested by the C()f'?>].>vr"'.'.!»'1','£'-'£"E'.V%'."L. "
to pass on the import. duty red.Ltct'toti
also to indicate the reduced _;firtt7e'si'_';(ttiC1.V'_'
requested to produce dOetu-11e!.1ta=I'_tj ' o
for supply of Na_pth.a a:;1.d".ot'I1erttretetzaruv
document to sup}9o__rt _thetrh" case j-'.9:-'.._vz'ion~
reduction in the prtces";foI'--usuptfilga power'.
The uariabtefiost u)tzz1;u¢.;_-;:e"m;:. to Rs.4:A.241
per LLI'1ftjoI'Naj5t_}_'ta 3.7 per kg.
Due thetttcost Vojfif'Naptha M / s.
Vagain called on 26--
" 'have stated that they are
not irfa ;§'osi.ttow, to reduce the rate and they
.'"tav.e'-:'1o(".submitted any supporting
docLtrr:er:.--ts,}'ror71 their suppliers.
tri' A:2:te:;u of steep fail in the Naptha pI'I'.C(:'S. it.
' 3u;§a:<3* decided to further negotiate to obtain
. 'power at a reasonable unit rate. Hence. the
i' above matters were discussed in the PCKL
Board meeting held on 29~12~2008. In the
meeting the Board has decided to
recommend Gouemment to issue direct1'on.s
under Secrtiort H of £~2tec:t:'rim'I:_y Act 2()()3. to
the generator to supply energy to the State
Grid as well as r'ecorrunendtng reasonable
h/,... t
-17
rate of Rs.5.5O per unit from
Energy Ltd,
Section 11 of the E§eciZr'i'e«it_y_ 1.Ac.i«. _ 21)O3*T*
provides that the appropri§fii.e'iV G2me':~:.;me}-1»:"_'-~.."**'
may specify i:hat -.___a gen'ei'a.tVirig
company shall. "ep_ct'rAa::irdi'nary
ci rcums tan (res. operate ani:.1_ I71(1fI'L'!f(1iF'1 (my
generating s'ta.£ion'«_in%.j_.'e=ccori:ig:ince with the
directions of ttioi Cgovernment. ' 1 ..
in the at. '£2/Ttibove in exercise of
the }é.0it)ere i:o.nfe.r.'eci"iin(ir§er Section 1 I of the
F1(?:tW.':Z1OO3 following directions
"have_ tbeen ie,siied' .=_u'iiiIfi.:r1.f1er orders in the
1'.(1terfe.§i. the Voizblicr:
ca) AllV___g_enerat'ors existing and operating
' in Karnataka Sta£"'e shall operate czrzci
Avi._v:'maini'ain the Generating Stations to
their maximum exporiable capacity
and PLF.
b) Ali shalt supply all
exportable electricity generated to the
generators
State Grid, in view of the exirciordin ary
circLm1,si.ances,
E4'/it I
48
8. In view of the sieepfall in zhefuel pricres"afid"c:'*.c.
the above Company being not in a po--;~;=.'1ziofi" '7'
produce documentary eoiaen.ce.e3««.,_[brx "z.1:f()z.
reducing the prices ar1ci 1'r1 the {.nE'e:'est ;'}1e"'
public. thefoliowfng order --. V
GOVERNMENT oIeoEIe'N}5:V.oeN 5.40 Nc.e":2ooé;" 3
BANGALORE. DATED '1x«~.rVa;4NUAR~:<'2oos3 fg
I. In the._circLL:--os1iaz1Lces'»e§q:2Zair'1ed in the
preamble and in exe:*cA§se'V'('g:}bf"'i:}1\g»,, conferred
under -Secli:on.._I1 :Act. 2003. the
Sta£e G€)§:gerfai:1f;nt ;1J.Jeas_edj&*io directions to
NUS. S§ufi)ply energy to the
{€35.50 per :.uu'('_/'rom their
r:'ioI.1Vf1.*f'ec5.AV plant" at. 'I'anm'.r Bcwi near
Mar'1§;a@o;"e']'§9é)n{Jamifiizry 2009 to May 2009.
2 A' '*Po_we.r Company of Karnataka
Li}ai'.;'e>a}'I3a:1galore Electricity Supply Co. Ltd. is
Vciifeoiecf 'Ego amend the Letter' of intent" accordingly.
BY ORDER AND IN THE NAME OF
GOVERNOR OF KARNATAKA
SD/- 1/ 1/ 09
(SJ, SAJ'vIPA'I'H K{;'1\/JAR)
Under Secretary to Govemmem:
Eriergg De.pcu'I:men,i
}a
£_!':g/
ei1'eumst.ance. That is the gemis {O which they beidrig and
while intei*pi'e1'.ii'1g the words "such other (3i.r"c?izIh1L€t_qii{'e$';*arising
in the public irtieresf' {he said uni'oresee1'i .e'xi.:"'a¢Oi'r1hii12i'i"yV'.
circumstance must. exist. and. i.hei*e-i'0"re.';*«i1, c'.:1IiIi<3i:'L¥e sad-Ci: that
the principle of ejusdem generis he-1.s'--.iio E1r)})IE.CE}1.i(}i'h-L."\3Jfih'fl~C
ii'1ie1*pi*eting the said provision. --
33. T here was Q1" "pg)wé€i--'..before the Act was
enacted. The Parliament was (Li1)':IV1Si(3iOU--S'1'17Tl_'ci11,. --V--ii1e:re is shortage
of power subsevqiiehi i;0"._ih;-3 ~eVnzi'ei.Ar'hei'11..___,:In Section 62 while
dealing vw"i'i:i';»_ g:ijetei9i'ifi:i'i1.aiigii oi" '.iV:i'i'iVi'I' they hzzive provided for
deéeermiziaiiion oif iizlfiff 'iii 't:..=1;é§e of shortage of €I€(.',[I"E(,'.i1,y for a
period not 69;'-<_C6Cdi.I1'g c-.i1e«...yiVeai*. 'I'hei'eI'ore. mere slicrmage, of
':;%!c%Ci'.ri'«:;it,s,I_ 'isVnoi. é1'i'i«ex_1.27a--01'di11a:'y Cireiin'isi.ar1(':e \&---'i'}i(Ti'1 was in
ighe"'Corii;<3§n'ip'ie;fic)1'i of the P£1i'1iéliT}€I'11.. '1'ha.i is why i'.h();igii in
S:-3'.c1.i'o.:'1 62 the vJo1'd sfioriage of power used. su<:i'i 2.: worri is
-- COr}Spi£TLiO.LlSIy I'11iSSiI}§:{ in Section 11. if" p(:»we1' under Seeiioii
If i+:..4_exei'eised to meet the siiiiiaiion of sE101't;igcr oi" power it
. j_w"e.uid"i*Lii1 contrary to or counter {:0 the grain of the whole Act.
34. There was an a.gi'eemeri1 i'J<:twe,ei1 the pei.iii0i'1ers
anti the i"e.<sp0ndei1i.s for suppiy oi" eie.c:tL1'ieii'._y 21: the 1'eii.e oi"
ol3jt:(.:1.ive 01' prc')viciii1g ele<"E'1'ic'7i£'y-acvcsas; it) all l'ic)Lisel1olds in
next. five yezns 2i1.1'1cl p1"0\'i(.liI1g reli2.1l3lc uiiini(>1'i*uptt'cl""Q;ialiI.y
power supply to all COI1S1ll'l"1C1'S. 'l'l'ic% Smit? Govern1.'iié:'i1'é:have a
m2,1'0r role. )a1'1iCi1l3.1'lV in ('.'.l'C2Illl(.)l'1 oftfe1'1em1ic)1'1"-«(£13.21c.it:$k. sir-_1l€ V'
J t.-.» __ _ .. .4
11
level £1'an$1'11issi0n and disst.1'1'l)1.11ioI1;""""i':--'i<? S'.I'c1i._c-_=. _Cj;~<i\_rr:1'1'11i':e1:1{'s
need to ensure the success of 1'(i':l'-!)l'l;l1SA.E11'lCl'_l'€.'S.l(}l'&{{lb'!]vll'Of
financial h€E.1ll.l'J in CllSll'll"JLll4l()I'1.,'v'lVJl1lCl1l.&.l'()§';:.jv (ft.;€1I:\f'..:(;"ll':iE{'L)lll€ the'
c1*<:ati0i1 oi' requi:~3iI'.6 ge1'1c_.i'a1ii()11 A(I'-3:-§"~.';.'l'l(.':il#\l)";.._'
46. Now it. is in the t§2,1,_c%l<;g{:§'19()i1I1r;'l~.,OI".l_ii1ié: national policy.
which ands 1;t:£:«Vcl5;g;1i1i1il(.}li'I"' in part. II of the Act. the
[)1'Ovisi0i3.s C-If the lli'e3lll);f ir1E:ci'pi'€t€d. Part. Ill of the Acti
deals \Vll.l'1 lC'}i<§::_I1"e1jat.i'0_11 oi"E3¥t%.t'*ti'i(rity. SE,'(_Tl.l()l'l 7 deals w'ith
ge11e1'zgti'1:g c0r1'1;);1i1y and 1'equi1'e1'nenE for setting up of
g'e:1ei4'e:l'ifig' Sl,Ei«l,lOI'1. 11: provides that any ge11e1'z»1I.iii1g company
A1l1:1é1j.f_l~ €${...2i13.lis§'1,'~,(ipc1"21Ec: and 1'11;-,L%i1i'.ai:"1 Ll g(;'I'l('1'E.ll'.il'lg§ i'5l2':li()I'I
\x»*ii.lA1<._3';..:1. ()Vl3£;a-1ii';1A1l'1g 21 li(':e1'1(.:c* Limlcr this X-\<>E. ii" E1" m1'1:plic:~s with
Vibes 1'.e(+l';1j1iti_-.al si'2.111da1'(is rcl2.11i1'1g [0 ("~.01'1r1ectIiv1'£,y w'itl'1 i.l1c'~>. grid
'i'é.f}{:i'1'€5L7l to in cla1.ise {is} of SL".C.'l'l()l1 '73. In other words
""'g€l}.€I'EL{l()l'1 of elecE[1*i<3i1"y SOL.lgl1l 1.0 has cleli('1c11(:€:d. 'l'l':C only
r<équi1'en1<::r11 €l(',L'.1,I'i(?l1'.}/' g€;.>1'1e1'ai1.ec1 by s1,1cl'1 g€fE1C1'8.lll1g
(:oi'11pamy sh0i.1.l('l be c:<)1'1i'"ze<%1'.ed to {.119 ;..gi*iCl £l1lCl t.l1ey Sl'1()LllCl
ii
Cieciicated t.1':'111s111,issi011 !i1'1(*.s (..'0111"1(=c".1'ied ""1(ii7f£fiW'i~I_£i'1_ in
ac(toi'€13.1'1(:e witI'1 the provisioiis of {he Ac: o1---'. {"113.R{::.i};*:;a_v0i4*
RegL1Ia1,i()1'1s 11'iad€-3 t,I*1e1'et.1ndc:1'. 821.1. (2111::-.*. 11 gc}1'1e1';1i'Aii';r.i'g si21.('iv0131v..is '
eslabiished. ii. si'.a1'1.s 0pe1"ai:iI1g 'i1:id._ €:*.!ec1"I"-icjv:2.1i._
pI'OCii.1('.€d._ 2.1 duty is Cast 011 the _ge11€1'e1£.'i'1':g (ii)ii1'i;f)_z1i'1y"'t'(3~~Qj)e1'aié'
and rilainlain gc>r1e1'e1t,ii__1_;_§ stai;i.r.m_js._ii*:-»_. 'c1('.'(.'.(J"I"C1Z?1\_1A'1(}('3': with the
provisions of the Act: o139"--t;°m3. (')"2'[:i..P.1.c%Regz.:]ai.i01'1s 1'}'1i-ldff
thenzundei'. In ()1.'he1' \»\{oi"ci's;s-¥§i'4:1Eii.l.:&:._1'c'g:.:].;1'i1'k;'ss the opc1*a1.i()r1 of'
electricity ge11.eéi>y;,1l'.e'g'iby {he g_'>('\'E?'V1'1(.'IT.l='1i.i:'11K£__'; st;aii<:)1'1s. S1.1l)Asec:t.i01i1 (2)
of Section 'l()V.Vci"e::111;:sn \vi1_1i's'L1;)[3{y oE"feIec:é.1'i(tit3,' geiic-;t1';11.eci by a
gC1'1€YE1UDg (toiiipéilj-3/_ to E;1'I'«..§/V.'iiCt",.1'1.'ist'?.t" 01' to any CT01'lSL.1I'1}€'.1' s:.1b_]'c3(:t
to the Ac1lE.v.V_1.i1r3 Rt%.IC$5'AVE;.Jj1ii"-.R€%gLI]211,i()E'1f+3. I--i('>wevc1*. keepiiig in
mind ifine_0bhje<:1'~Qf'1}ie Act". as 21 rule, the ge1'1e1'21t'.ii'1g c'ompa;1ny
'Vr':121y"i":=~L1f):'j'l}I V"(i'.}'.€'3(?l,1'i(.',ifI}/' to any 1i(%e:'1secs. but it. shall be in
Aa.ctct<3_i1'd£Am.CL~...Wif.h_.~1}'1e Act. Rufes :'11'1cI the R(?§_{L.I}é"1U()I'}S made
t'.1"1€;'.1"@i_111d_e~1'*._"I'he |ge1'1c21'ei1,i.1"1g (:0111pa1'1_v 111;i1y also supply
'A 't;'.§C~.'('.[I'i(',iU',.."3.0 any (:01'1sun'1(«'r:'. !'1owe'vc'1'. s:.1¥:)je(.:t1. to the
'1'€}§;:£E>l'E3,A1'A;}:0I1S made i.E1'1d€I' s5z,.12')A:s(--3(%1i01'1 (2) of Se(.:t.i01'1 42.
VTh(3:1"el'0rc, it is Clean' 2.1bs<j)iL:i,e £'1'ee€I()1"11 gix--'c*1'1 to ?;'1'1ese ge1i1er"2-iting
, ('.()1'1'1j)£1I1i€S 1.0 (est;-113Iis}'1, operate and mairitaizri at g(~:1'1e1'at4i11g
s1.ati.on is no: €.X1.€I"1dC'Cf to the supply ofeicct:.1'ic:i1..y geI1e1"2:1l.ed by
the (:onnotatior1 of some word 0C(YLl1'1'iI'1g.§_' in it. 1+-3ve.1s1..'21..;i'egat.ive
Exp1ar1at.ion whieia exclucfes Certain types of 2: _(§££i.(%g_=§:j:*§g_"h=ofn._
the ambit of the enactment may have the ei'I'e.:'.rt..M":-;ho\t%11'1g *.hat..
the category leaving aside the excrepied i::t1c*E_t1é_edVWithin
it. An expianation. normaiiy. sh'ot1}dA'be »'sr_). »1ie21.d" @113. 'to
harmonise with and clear up t,'3ie"s=;11bigu.i.ty in the. 1{11'a»i.nH sect.ion. '
and should not be so eonstr'uedx°'a1s'i.o_ widen_i.11e ar:51bit of the
section. If the inte1'1tiVo"n._of tghéi"1??:i;'liée:1f1e11£ \2tfa's"V'1tc) exeiude
severe sC.a1'eiiy of €I€(t{.I'it?i'I'.y. IT_0I'i;1V }t.hL=. j:1nea:s_1i1'1g of the word
ex'tI'a--ordinary (',il'.£'.L}I'11S1§1fi{T€S:;"U'i'_fh€3 exp.]"au'1:-11i(>1'1 they couid
have express}yA's%_e t.e(i"«so;«,Wh1__ch. they have not cione.
SE. 2.11. w is V"€:of1£end'eo1' that mere se21reit:y or severe
sc:arcity" of eIe'etir_ieiVt.y do not constitute an ext'ra--ordina1'y
Ci;<r:tii'1'2st'éLf1Ce."because the very purpose of repealing the earlier
Actn[ar1 ci~-.;j3,Vssi£jg,§--v"1'.I1e present. Act" because of scarcity of
eIec:tf1?.i_eityv."it to improve the positzéon oi' ;.):"<)c1t.:t':t:io11 of
eieet.ricti1jJ,.i"his e1'1z2Lc7f:111em", is passed. 'I'herefoI'e.. :'1'1e1'e sc:;11'(:ity of
j elAe'oi:ri_Ac:'ity do not co11stitiute an ex1'.:'21~o1'di1'1a1y cti1*etmr1stanee
M _jL1_st.i{yi11g the exc:1'c§se of power under SCtI{iOI'l I 1 of the Act. In
..V'support of the said Co1'1i.enE'i()1'1 it was a11'gt.:e(si when ihe
Pariiamelfi. expiaiued the 1'I1e£:11'11'r1g of the word "e><i..1'2.1eordinary
_e.\<pressio1;lVs'~of' i"-restricted meaning must be
j 'isas_cepi.ibieA'of--~i«he import ihar they represeni a
_V class can be found. ejasdem generis
V rfaie r1oV£'v.--ifi1tiraci:ed and "such broad construction
'' .-§'ubsequeni' words may admit will be
_'favJ'o1.iredi As a learned author puts its
76
I In siaiiiiofy inier[JreL'ai'i'on
Cross {p.I16] says: A' i V
The ciraflsman. mus: be iak'eni:i.ob""V.
have inserted the gerierai Loofdszin "
somei hing which oiighi" .(:o:1--._haue
included among F. __i'ne ' V. peci] V .
enurneraiea'. items hadbeen orniiied.
14. The Lll'?iC'i§'.;I;J.F§-,.'.VIi:i'!_.CA:}""Uf}i.S approach
to statutory cons1'riici'i0_n ...subseqLLeriat
general u,}orcis~- i,o"fgiir1rd against
some orn'is_sio_n in objects of the kind
menizTo:1eci:._e;ariiei' 'a:id':aii_LL1e"rei'r1oi§, intended Io exi'end
of' kind. This is a
pn;:su~mpz"ior'rifana». unless ihere is some
corii'raLrgiindieaiion. "Biit the proceedings words or
...{'f a class can befound. but the
specific words exhaust" ihe class. then
rejection of the rule may be favoured
because its adoption would make the
general words unnecessary: if however,
the specific words do noi eXhai.isi the
-}
-.}
class. {hen adopiion of {he rule may be
favoured because its rejeciion iuoiild
make the specyic words iinrlecessszajii '
15. Francis Benniorii ir':'s._l"fi.is >'S'ia£Liioi'g_:"'~. "
Construction [pg 830-8311' o«.b_Vserue'c.-.: 2
For the eJ'Lisde'm«..'geri.eris" ;9.ri}'Ii;i:1:)le:':§
Io apply ih'e.re m.=;is'i* Slgf/;ilC1V(3:"llVVV
indication can
properly be _.d.e:s_crfibeo'. q . or
geizitsgi ' tlio-;_:iQli"«. v.§pecij'ied as
;sucF1.__ ':.l*'ii,ri}1£.>rmo:'e the
gigiyifig L ,:%:"l1.a:i ihe words
-regiilciiei The naiure of the
l geriusl gai::§;:.«g::.. by implication from
i._he exoress. Lvofiiiis which suggest" ii......
_ _ Ii'vv---2's-«"necessary ilo be able (0
A V..Vfo:rim_ilai:e ihe genus: for if ii cannot, be
iuiaiea ii does not exist'. 'Unless you
.lca.rifjind a category'. said Farweil ii,.J,,
.'ihere is no room for the applicatiorz of
the ejusdem generis doctrine".
16. In SS. Magnhild v. Mciniyre Bros. &
Co.,[ (1920) 3 KB 321' MC. Cardie. J. said:
Sofar as I can seen the only test.
seems to be l,£.Jl'E,E?lhE3I' the speirg'/'ieci Ii'11'.n_gs
._SCVC« I6} ii*;;a}as observed:
".73
which precede the general words can be
placed under some common cazegary. T
By this I understand that the spec§i'_i_e'd"<--"
things must: possess some common V
c:lomz'nanifeature. -
I In Trfblmban: _Parkash'V«lVayyVa~iE . A.
Union qr India {(1 969 1 3 Ln; ccgzm Ts_V*'~_:11'ci;'j l
...The _rule ref_l.ecls__anV aLLemp1;_i.o_.ii
reconcile z'ncra'f;"paf_lbilVi:1j " the
speeific and of
the Oihtf rules' Hcjf' 'lh£efplfe{;aI'i'or'::.3 "that" all
wokds f:'I;l1 s.m;:e are glueh effecz 21'
pasV:s£.ble,lA3V.Vtfzaiga ' statute is to be
cohsI.rLLe.§d~asali;uh.c~le and that no words
xix; l a 's.£ai1z.lEie__u.Jare presumed Io be
Sllp€?:fjlll(§IlS.l..4
In UPSEB U. Han' Shanlcar /£978 (4)
_ ...The true scope qj" the rule Q/'
'~ _ "ejusdem. _ger1erz's" is that. words of a
general nature following spec;'f'ic gmcl
particular words should be construed. as
limited to things which are Qf the same
nature as ("hose specgfied. But the rule is
one l.L?hlC,'h has {'0 be "applied l.£.'l[l"l
eaulion and not pushed. 1o<)j2:zr"..., a
L/_/,..
._§'
*9
19. The preceding words in {he
provision which. under this »pVariiCula'r*--
Consiruciion. control and iimiiezniihelitrneanjing
subsequent words must" represern a geri;£s"or'.
jamiiy which admits Q]" a"---nun'ibe=r of." specievsmzr
members. 1]" ihere is only "am _specie--s_i't.' c"ariri()i
supply the idea Qf-;iQ_enLLS§'H.' " i
20- In 5778 Pf' -C056'; Siiier'.ieéipressions
'bleacfiirig, ' '?T:),é.:"'C€f'ii'3I'T1_.-*2], 'V dijeiirigi, = Vining, water-
proofing: 1" "'sr__ii*i'nfc{proojir1g, organdie
proeessirigi' ._.§'expression 'or any
oigner protesspfeonieiripiaise processes which impart
a i3m:i}1ge' Q/ii a'V..ei--raraci.er lo the jabric by
eiiheriijie a,ddiIior{_ Qjitsorrie Chemical inio i"he_[abric
er"aiirieuriiiiseg2411;} oiher process' in the section
share onéii;;~"me other of these incidenis. The
'any other process' is used in the
consiiiuies mariigfaciiue in iis
"-<.exten(;ied' meaning and the expression
"u;nprocessed" in the exempting notification draws
A meaning from that context. The principle of
Vdconsiruction considered appropriate by the
Tribunal in this case appears to as to be
iinsnpporiabie in the Con {ext in wh id': ihe
expression "or an _i_,r other process" has Io be
Lin.dersioo(1.
iii//i., i
' pz'elL*io:i;§?ly_ eniuneraled unless the language of the
8(2)
54. in the case of ASSTT C.C.E. v.
TOBACCO COMPANY, [AIR 1991 so 506],
under» ll ll V l
"6. The rule of e;'usa'.ern-generiis
invoiced where the scope and i.lie
words which 'follow ceririi-'l__ Spee'§J1_'rc"words'l'l'{'u.:liieh
have some common charaeirerisiic ari(i_ooAns.=iiiuie
genus} is required. to :g.:ile.ie'r.r;nir1ecl."Bg..5§1l1e .
application of this s:g_co_o'e=- _ana*an1bil of the
general > certain. specific words
constriiullingl to things ejiisciern
ge:neris-- u}il:E1w._rl*iosle'iipreceaing ihern unless ihe
cor1i.egcl"' oiher_u)i:se General uaorcls musi.
o_rdi:1ar'i'lg Vbearf. l.l1.ei.r"~'naiiiral and larger meaning
.~i;m.d"need noi:be__eo:1_f'ined ejusdern generis to things
V . out an ir1i'enl'ion io that efleci'. Couris
lliave also..elirniiec:l the scope of the general words in
ioere a larger meaning is likely to lead lo
_ aosura and unforeseen results. To pui ii.
, _ l.lClyji"erentlg, the general expression has to be read to
eomprehend things of {he same kind as lhose
re erred to by line preceding specific: [mugs
consliiuiing a genus, unless of Course from the
language of the si.al1.u:e is can be inferred l.l'i.Cil the
general words were not inl.er1cied to be so limiiea'.
Assrr. COMMERCIAL TAX OFFICER AND
8}
and no absurdity or unintended and
complication is iiiceig to result i']'t.tie_i; are ailiifioed 1- V
taice their riaturai meaning. The cardinoii"2:iile.:'tgfE
interpretation is to ailow ihe geriemlg LUif4)I'd_S'.'
their naturai wide meaning iiri£ess"'thi,> id;:;g%g€§::er
the statute gives oi dgffeiferii «inr_i2"t::1iionorig.suchig
meaning is likeiy to iead toobsurd .resuItss
case their meaning restricted'vv.by..v'§the
appiicaiion Qf'thisV:=Ltzi§:*' and required to
jail in lime with the if1itigs'fi_es'igr1at'ed by
the preceiiing ujriZ~es.s_ theérev is a genus
which biiebiieornpreheridedg' j;I"0I:?'imV£'f1(3 preceding
words. _i'he__re_ can be *n._o_ques£ion oi invoking this
rule. 'iCnn._tt':i«i.s any application iufiere
the' general specific words. "
ifis"ih'e'1vca's¢.to1' PRINTERS IMYSOREJ LTD., AND
o:tIiERs'[{i.99zit'sTc VOL. 93 PG. 951, ii. is held as under :»
" _ "This concern must have to be borne in mind
it while understanding and inzierpreiing the
ekcpression "goods" occurring in the second. haif of
Section 8{3}{b). In other words, the "goods"
referred in thefirsi half ofelause {b} in Section 8(3)
refers to what: may generaiiy be referred. to as raw
inaierioi {in cases where they were purcrhosed by Ca.
421/ ,,,,
the said. de}'iinttz'on need not be applied. It we keep
"tfhe»~."i'~ab"oi2e consideration in mind, it would be
"eotd.ertt4thatvthe expression 'goods' occurring in the
of Section 8{3}{b} cannot' be taken to
"-..e.>ccV_lt'ideAhewspapers from its purview. The context
A 'liincltidecli by Parliament. Even apart from the
openinggwords in Section 2 referred to above, it is
dealerfor use in the martiij"aet.ure ofgoodsfor sate}
while the said word "'goods" occurring for l'.l'L(--,'_f'vOx!"l.*l1._"t__"""
time [i.e. in the latter half) cannot. obviously ''
raw material. It refers to maniifactured
t.e., goods rnanty'E:1ctured bywsuch
dealer W in this case, newspapers.'
aiso be remembered that Section l'2 l.i)hl'C>l.'l
certain expressions occtii*r_ifig_ir1 the Act
the words: "In this AC'l4."'~._"liiIl(:'SS" ' neonftexi
otherwise requires ih.a:rAwi1e:~eber the
word "goods" occiirsl in it is not
mandatqry that oneii-sh_o:u.ld*-- attribute
to the said e;xjp,ressi3on =t'heV niear1irtgv--d,s«sigr1c*d to it in
clause _[dj.5f;VQrdtnarily, that is so. But where the
con'texi'«. does7r_to.t"p_erm.i--t. or where the context
requir'es_ otheru_)ise," the meaning 'assigned to it in
does 1 not permit: it. It Could never have been
well settled that. where the context does not permit.
or where it would lead to absurd or unintended
result, the definition of an expression need not be
mechanically applied.
83
56. From the aforesaid judgnient what eEI'1'€:I'g€S is
this : -
The Latin words EJUSDEM GENERIS ioihthe ':'5::«"£.1'l1v'i4€'}Kl1"i"£:]
of nature} have been attached to 2:1' piineipie of-§:bns.ti'i.1t:titin
whereby wide words associated in the .1';
ext withiA1'1'10:'*e iiéinitedu
words are taken to be i'estricte'd. by iii1p1i--r;eit'i<.iifi_= t.<j'1.bn1é.it.tei's oi"
the same limited chai"-a{':1,.er. '.AThc"'_:t":;;'L1\Sd_i'3I"£1 geh'ei*i's p1'inc:ipIe
arises from the iinguistic' ViinpEieati;:)n__byV"which words having
literaiiy a wide me:an..i_ng -j_wheii'i'..t'aken°':'if1 isolation) are treated as
redueeci. in _<3eope[F:>y_'Vt!1e"%Iei'b_3.l Context. It may be i'eg'aarded as
an instant:e'o_f eii!.ips«is, b_é"r._ireV}iance on impliczation. The ruie
F€f1€Cf:~;5=?k_I1 atte-nAA1p't"t0iireeonciie incornpatibiiity between the
Rspecfific E~'é§;i1dV't'..g;eneraI words, in View of the other ruies of
Ein"::efpr€ta.ti'o2.i';' .tjh"a:t all words in a statute are to be given effect
to if ;$C2ssibi'e{I_tEi21t a statute is to be c0nsti'ued as a whole and
fthat no. vvords in 21 statute are presumed to be superfluous.
=Bui.*t.he rnie is one which has to be "applied with Caution and
_' too far". This doctrine appiies when (1) the statute
V. contains an enumeration of specific words: (ii) the subjects of
ftiie €31"1Ll£T1C1'€1iiOI'"1 eor'1st.it:ute a. Class 01" <.tat.eg<)ry. (iii) that, ciass
1gV,,ii ,.
or category is noi exhausted by the ei1un'1eraiioi'i e;1Hi_1L"I.{ii-")."'l7lie;"e
is no indication 01' a different legislative EIL.{Elli.""{;x'(f1'1fC'}T£ll igvcumlilsl'.
must ordiriaril bear their natural"é1ii'd.la;-jfer. 1i§'e.alniiw2 and
1 " ' ' .V C:
r, -'
need not be confined ejusdem gerieris
enumerated unless the language"'~QA£' the s_ta1--:e:ite: s"péi1's' cut all
imention to ills': effect- Tlrie c:arcl--i-i'is'l:--.rul-e. of lIll€l'}}l7€i'c3l.l.()Il to
allow the general wcurdslich'{,si;ei~.i;liei:i*lsl.V:;'i.;:ii{ital wide meaning
unless the lai1g§f--{ié§E.?_ 01' Vtllilferem indication
or such II1€I::";3l~'llEl1g ifrol results in which
case by {lie application of this
rule they 50 fall in line with the specific
things designated by {lie »--p.f'eceding words.
._i.
For tlieejusderrz gerlens pririciple to apply there
V'ari'1us'l"be"s»«s%,£i*i'ic1er1i indication of 21 category that car: properly
beldelsicribeci class or genus, even though I101 specified
Tsuch. iii: the eraaetmerit. Furthemiore the genus must be
..&i:211"1*O'w«er mail the general words ii is said to regulate. If a
'««.--gei3us (:emnot be found. the ejusdem generis principle does not
a it is necessary to be able to formulate the genus: for if it
cannot" be l'o1*ii1uIaI.ed it does riot. exist. 'Unless you can lirici a
rgtazlegory there is no room {or the a¢i;)p§ic21ti()I1 of {l'1e c;fj1zsc'ZcIn.
LL e
lo iliizigs. 'prexfi'o.i,:Vsly
?'¥
generis clociririe. If no class can be found. {;fjz.lS(1e'i'_7fTI.._Qé3Il€'i7iS fule
is not aitreicied and such broad consir1.l'e__liov:i'e=.és 'the 7
subsequem, words may admit will be' llA}*1\io:.ufer,i. .:A1'}.'iI1§.F.iIl'tlO1"1V"iiO
exclude {he ejusdem generals prinoiple ri1ay."oe".t'1teeié;eci_as
implied where the application ol7._i'h.e p1'ihci_pIeuwlould pfoelu(re
result Conirem,r to the legal Inegmiiig1,é1'l«ie11 iolse iriierided by
pailiamerit. The pr.inC'1ple' lispf:'~n;1oreoirei* but one of the
. V .«..VI '. 'V _.
interpretative e1*ii'e'i*i__a th'¢1"l'."Vii';qypb'e;jz--1ppli(i:;iE5le in 3. pzuiicular
Case. Acc()1'cl_iI:;;gl3{ any iiidieaiion that
the 1"(:'Si,v1ll__VVila"v;ll;Olil-l3i:e?v¢5l..':Wil:lLild'.:iiQ_L»:§COI1I'0i'H'l to Parliaments
iriterldeéi But. where the context
does not lper:I11ii.vploi" context requires otherwise. the
meaiiihg i;1ssign"'er:l_pl.o ii in the said dei'init.io1"1 need not be
lap-pljiled. _isa__well settled that where the context. does not
p"erm_it_()'1'v would lead to absurd or uriihleridecl result,
the '(i.el'in__'i'tioIi."' of an expressiori need not be 1'nec:ha:iieally
A éilbplpikéd. "
l Now applying these principles we have to find out
I
whether this doctrine is attracted to exelllide {he cireumsiariee
V I
of severe sc:a1'cii':y of Elecmieiiy to the nieaiiing of the word
"eXtrao1"cii:ia:'y e.i1*ctu1ixstanees" in Sec¥.i<:»n l l of t.l'1(- Actll.
1{;_Uf1(3.._ACl.. l"1."se~'~~gsV out i'.l'1ree circun1sta1'1('cs c:o1'1sti1.u:i1i1g
Exits' ordviiisry circunisiaiictes. They are:
.,___11oi. used aftei" the words "Public Interest", which is the third
So
59. "Such other circumstances" is at §_.§€'I'I€1"".V€'V1.l"-V."<»'--f"n';?_l"'Vf.'l_' or
siatemenlt, if it follows an enumeration of circL1jn':sis.nZc,es or: 217
particular or specific nsieaniiig, such»~ge.nera.l \vorci--s'f«1re._ifi.o1'.to
be construed in their widest. extent. are _i'<)._l3::: l1_l"el.<:l"l21s
applying only to c:i1'c:L1n1s1,ances_of the "same_ l{iV1i1c1a__o"r" atléiss V
those specifically mentioned. __l.t ca1n'1on_ of statutory
constiruction theft where "'gf--1fl[1€1""c3l \3.fOv1"Cl.'S-_:fO_11.UX;V the e1'1umei"aiio1'1
of pa1*ticula1' classes of""th.in'gs;* Vgeinilefal words will be
construed as _a§ppl_{}ing o.171'ly1£o t.hi..i'1gs loilltlfie same general class
as those e1idn<:er_ateéV'i.' E\1ni'»izhe i1'1Sti'--i'11t case the said expression
is used in EH1 e>:plaijaiio.nl"'vszh'ei"e the word "Extra Ordinary
Circumstances" isV'V--l:iei*f_11e'<;i", only For the purpose of Seciion
""{o:) }l}'"i.irE2c11: to security of the S{.az'e. Public order.'
44" {I3} "£1" natural calamity:
A _ (0)3. " 3/uch other circmnstances arising in public ini.e:'est.
60. Firstly the words "such other circumstances" are
(?E1t€§§Ol'"y constit.L:t.ing an exira ordi1'1a1"y circ1,:msi.a1'1ce. it is
ALL-//~
87
useé after the two categories. The question is \vhei'lie:r"the.l"irsi
two categories constitute the same class or kind--;[_ if the"a1i?i:3xye1"'»
is no, the principle of ejusdem generis--.has-'_no'éi'pplic:avtioii7iri '
construing the words 'such other ci'rcu:mls°tlances'.~. _
61. Let us take the io:2§seetii'ity of
State. It may be from outside insicle the eountiy.
Simiiarly, there may be This threat to
the security oi_'lfiConstitui:e one class
01' kind and between these two
words is..:'.'coris.isictiously missing. Such a
circumstance is Generaliy it is an act of' enemy
may be fi'or"i"1l"o.utf'side ()i"._iriside the coiilltry. Unity and integrity
._o_f tii:ie"co;ur11;:y is tihremehed. The phrase used in Section ll of
fthe A611lVi3.'>;'lI1'"€'}*(;Li7E1 ordinary ci1'eumstanCes"'. i. e., it is only to
n1e'ct'"'ar1 €.Xlfi'Ei.':;Ordil1aYy circumstance such as £h1'eat, to the
Csecui'ity.. oiithve State or public order, if electricity is needed and
..:I'i")xtV'£l"'<s{2;'1l1E13f)}€3 at the disposal of the Government' this power
'«l«'-'could be exercised to procure electricity from private hands. To
"e_meet, such a ci1*cumsi;anCe. ii' electricrity is needed and it is
available in plenty. the quest:ion oi'Govem1i1e:':t' exercising the
power under Section 11 would not zirise. ()i'1§_§,r wiieii the
bye uuuu
88
electricity is not available, it is in the hands oi"pri}:ifc_1_1'eVoe.i*so'ns.
the Eliectriciiy is needed to face the threat" to [l"1€""'£~"~_t.'(?Ll:VAi"i'v.l;lyv§"' oi"
State or public 0I'Cl€F._ this power L2o't1'iel"be «e;.<«er(;:«ise'cIA. I"i()We\re'r.
it does not mean when there is thVi'e3{t--_i.o the seetiri1yu_oi7~.theu
State or public: orcleiz this ;)oyi9er eotiid berexeirctilsed even
though there is no scraixyiiy of otlieir words threat
to the security oi' the St2all:e'llsr not the cause for
scarcity of electrieity'. order' the word
'_()_I3' is usec:l_~'l'~l1e is 3.'io:25ri1l2iii;l3rlllllclisjunctive. It is an
iI'iCliC{:lU(lF_'i"_'[_1f1'E'LV"jL~ l3Q1?»;Stittlt6S a class or kind by
itself. an alternative. The second
categoiy is 221 r1i1iu1'es fury. It an act
of ii' is ':::a__s~js' by. itseli', as well Linclerstood in legal
Again unless there shortage of
eieC'i1lifiCity~ titiestion OfGOV€i'I]11'1(iTI'}E' exercising" this power do
not arise..__"It -islonly when the ehailerige posed by such I'lE;t{,Lil'al
e'alam.ity'it to be met. electricity is required zmd ii' sufficient.
l.e1--eet»rie'ity is not available at the disposal of the Government,
Government. could exercise this power to procure the
~ leieetrieity lrom p1'i.vai.e gerieraiing (:c):'1'ipz,11'1ies. This eo:i.si.it.Li1e a
separate Category or g€'.i'}t.1S. There is no connection wliatsoev-"er
1.»
89
between the first Category and second ca1.egory...__fI7}'1.e's{5e. Ewe
categories do not constitute a class. or kind or ge'n_us.:f=. L"
62. These were the only two ezzfiegoezjies V"v;rI*'xieh__ wi-:1-e
found in the Section \-\r11e11»oV-the BEE! 7.,xrase.'V11i1t1);ved in me!»
pariiament. The draflsmen p'1'<::x'2id:%:f_'o;" general
words. It was not in ¥1:':s.T':eor111e11}.o1éd:§oooA21$_all. the Bill
was moved in the of the peopie
in their wisdo;h4"i'A}1:otV:gf:i1& eg1id-----V;or'ov'isior1 would not
adéfiiluately fin the absence of {he
af'o1*esaiVd"d"ox¢o* 'i'f.;'vV£'1'v1'€I'€3.'iS severe scarcity of
elee1:r'ictitS'z-.21"::d in pa1'L:'eu1;i:1'. the IZ2.1"r11c:1's.
people _1iVi1'1g"m V't.he';vi1Al';_1ge'S§ or 1*121miet.s. or befow the poverty
'V"~i_iAne xj.ror'r:ing oi2i's's"'é:ir1d even peopie be:-.ionging Efo middie
V'=.e'la;Se." w1"1:)»_"ce:z1h5::o'¢-- afford to pay higher tariff. cannot'. be denied
9"
eleoifieity The Nationai Policy er1visage:a. em obligation
'on the .Go':{e:"nment to suppiy eE.ec1.ri<:it.y to rural areas under
6 of the Act. India is stiil 21 Sooialistic State. E"i1eetrieity
'Wis an essential requirement of all facets of our me. It is a basic
'°<_humzm need. as food. c1o1.hi1'1g and shelter' '1'i'1ough the Ad.
liberalizes the market" economy but. is not 21 lzzzzie {dire
provision. which seeks to iin'1i1' the operaE'io1'1 of the public:
LL ,4 ,,,,,, ,.
EX
interest and directions related thereto. 'i"hereforeMa '4I11Vé;}'1:1'b{3i.'< of
the parliarrient proposed an ainendiiieiit to eovergthe 'ii:1teres!_'oE°.
the common man of this c:ountry""'by.
an ari_diti._on Wot' an
independent category apart from the dc-xiistirig" two, <:2ite'go;'ViesV
namely "such other circums£.artc'es"£:zr:Lsint} in pz.ib£'i(; ir1,t'e'i'es'i.". The
aniendinerit was allowed. and parif 'of the Section.
The subsequent amendriienti--i'o'--uofdhe Act makes the
intention clear. the Act. 2007 the
old Section 6 which provides
that the ____ and the Central
Goxfernnieni,' sVha£.i""-..}'ointij,z_ "ei'1'deavor of provide access to
electricity tfoaii areasieiineltidiéiig villages and i1dI'l'lI('3'{.S through
ruralégjieiect.1'icit'y infrast.ruct'tire and electriI'ieat:ioi'i of
h'ou¢ser:oi:'d.s. _ A'
'"83. "i5hei*ei'ore the third category is "such other
'.eireunis.tan:_ces affecting public interest". Thereby meaning
v.:CirC1Ji"i1.Star1C€S other than the earlier two categories. Therefore,
' «i«.~'the§woi'd Q3 is again used after the word calamity, making the
"=_intention clear that. the third eategoiy is yet another a.lternative
and to be read disjtzricttively. The only conimoii ieaiime
runniirig u1'iderne,atii these three eat.eg;ories is an extra ordinary
1
{)1
circumstance requiring electricity. justifying '1IV.T..1J.'\f'Ci»kV.Vi'I'1.é'§W'V/.vul"}'V].€'
power under Section 11 of the Act. 'i'heref'oi'e.7.§hat'-Est" not
general word used to follow the speeiiie words,4eorisé.i.tt:*ti'I1g"'.a
genus and restricted to things ejLiIecie*:_n ger1eris" .:.ui.iha. t'i=1.()seu
preceding them.
64. The CaI"dil1Ei§'..".Iz'L.',16 of i.n.t'e1f._prre't;a,tion is to allow the
general words to take their"n_atti_ra} \n--?idveVrn_e;i1iirig. When this
general word is" by waysof"2::rn'e'iidment. the intention of
the parliament 'r_.:1ear. »th'at}f.hes.e words are in addition to the
other two téivrt:ui§1_stariees,"in' the Biltl before amendment. as an
independent «eate;g_ory':_t'e.rt'ge_ri'La.s.: Any other interp1'et.a;tt'.ior1 would
negate the ;j)é-'l.i'li'cii'}l¢.{1Eal'y iiitention and would not eoriform to
'"~._the ._péti'iiz2;1'ne11ts intended meaning of. the enactment. The
V'--,a'ppiiC8_(.iO..[1"Ofihve.{L116} would produce 21 result" contrary to the
legal 'riiear1in;g'{'j_ tetking to be intended by pariiarnent. i\/iore over
'this prineiple of ejusdem generés is pressed into service to
jiesoiveip the ambiguity or uneertairiiziy and reconcile
'«t«.--ine«;>n1pat,ibiiit.y between specific and general words. in the
"e_instam'. case there is no .21mbigi.:it'y. There is no incroxnpatibiiity
I
between specific: words and ge1'1eral words. The g,;"ene1'al words
used itseii' Constitutes an indepen<:1e1'11 <:a1.ego:y or genus.
')3
ever intends to favour one section of the popui.at.i<m..§;ég;r;_ii1s!, the
other. Its ostensible and proclaimed intentiori__is"e1lweiys't.he1't« it
is doing justice between the various"lseetionszol'-it.he pr_,yp_t1"l'zi,t'iol§1.
.'_.
No rule is better established than tl1s;i__w1.'1_ere two ti1e3'r1i1':'gs~i;1re.L
possible. we mtist take the Irioie i'easc)i"i21ble 'one. If the choice
is between the two intfii' 131' ,,'?tatiO1'i's ha1T_l'0\xreli9 oi' which would
fail to achieve the lot:1};.t;vl"legislation. Courts
should avoid a iieduee the legislation
to futility ariti the holder coristruction
based ort Pittl.leiAn;l€i}1;...Wt)L1ld legislate only for the
purposeiol" effective result. When the
Court is cal'l:1:_d"uvpoh_1'so'.g1"vel";: wide or limited lI'1l.f:'.l'}')I'('31&ilIlOi'1 to a
p£1l'ilt2i§:llt:ti"'.€Xp1'€s.SSv.iQI1 arid when that expression is capable of
booth" 'El1F.3SC1'iI1iz"iTpi'€tElI,iOI1S. it is open to the Court to consider
what"__'.v::is of the Legislature and what was the
_II1lSCl;Ii€{'./._'c3\.i.I1'1f3.tZl at and the Court niust try and give that
oonstrU.et'ioi'i to particular expression which will be more
_clt;.risi--:~:--tent with the suppression of the mischief' rather than
I"-.t,.h_z.:t mischief being allowed to contiriue untitontroiled. W'%ieh
"I11€1l,€l'§£1l words of 21 st.a1,1.it'e are <'ra;3a1ble of two tit)l'lSl,1't.iC?l.i()I'1S.
one of which is 1il<;el_v to deleal. 0!" izilpaii" the pciliey of the /-\(:i
[g/to
94
whilst the other eonstrtzetioh is likely to assist. tinesehievernvehti
of the said policy, then the Courts would p1'eie"r._:toiiiidoptb
latter COl1SLI'U.Cl',lOf1. It is more p1'obe,'tjlle >l.'l;1{"_'{'. '!,egislgitu_i'eVvVshotiici
have used the word ii"! that interp1'et::itioiji xvliielé. Aleasi O'l'l¢Ci1d:3.,
ag21i1'1st 'our sense of justice'. ii'-ist"appea1's. .t'l'i'a.t_"'._?)i'1ci':. oirthe two
G
constructions will do if1}"i,iSUC€.."l3.'1id.:"lT.llE--._0l,l'I€l" lé-ivoid ihjtzstiee.
then it is the bouriden §Co_tii'.t'.v"tto"'adopt the second.
and not adopt thle._l'i1'si_.'.A of"tho.seffeonstiitietioiis. Where one
COIlST.I'L1CUOf1:S"'lCEl.CléE,.{O.VE1lj.$1:11TClil;§l',x'a1'1§l'U16 other makes the
statute lVQg.iee_:il;..e_the--i;,latte.rV ie_oii's't--metilon is to be preferred as
every effo_1't s'FiO11l'(lt)ff_"fi3,§1&é17fO-- make sense and not nonsense of
legislation.
'\'86_':--Iii was n'e'x't"e'oVntei1ded that. in Section 62 of the Act
determination of tariil", they have provided
detetfi1inaii.oi5;I_oftariff in case of shortage of supply for a period
'not exceeding one year. Therefore. shortage oi" eleeti"ieit'.y is not
VeXttfa~o1'dir1etry Cil'CE}1I1Sta1'1C€ and that is how though in
"~Seetion 62 the word 'shortage of power' is used. such a word is
ueonspieuously missing in Section 1 1. Part VI] oi" the Act". deals
exclusively with tariff. Section 61 speaks of tariil i"e._g11lati(ms.
It provides that. t.he Approprizne Commission shall! stibjeet to
i§I£1COI"d€1r1C€ with the provisions oi' i:he Act; for
by 3 geriei'21i:ing company to 21 disiiribuiiou
' licerisee: .';'.VI.'c';ii".:$;'I};1i.S133iO1"i of eIeci'.1*i(?ii;y: wheeling oi" eEeci.ricii;y arid
ii so.i'e-Z of eleCi;i'icii.y. in case of shortage of supply of
reideetrienity, the Appropriate Commission is empowered to fix the
i:II.1i.!'iimum and maximum ceiling of i:arii'i'" for sale or 1I)UI'Ch&1S(;'. of
«* e1e(ti:1*icii,}=* in pLu'Suar1(:e of an ag-,§1'e<.=,I1'1c1r1":1,. €'l"it€I'tTd into b€1,WC(:Tz3
the provisions of this Aei. specify the terms and
the deierminai'.ioi1 of tariff, and in doing So,
the Criteria which are 5631: out in iI*1e;v'Séi»id'é3t*;v:i;;i.oii:
to clause (i). One of the
safeguarding oi" consumers' ..'c'Vi{=. ii1I'1t"V,V
recovery of the (1031. of €v1€C..i.I'iCi1%}]r"i'115%?"I'££é{S_9I1aI$iévViqialii}/161'. Also.
it should bear in mind Policy and tariff
policy. Seei.io1"?.:i\5L3 very clear the
Appropriate :.C,"o'ivi7i_1'fii_sSioii.:;:_hé1iE.I a.dop"i. iarifi' if such tariff has
been deiemiiuned' "i§ii:rough.ii*afispa1'ér1i: process of bidding in
acCordai1_ce«_ dg't,}7i.dfilii3'€S issued by the Central
Govern1'11e1"i'i, Theii'; Se(?tioAfi= 62 provides for dei.e:'1'ni1'1aiioI1 of
iarifflgj ii. e.nipou}'e-Ai7_s the Appropriate Commission to deieri'ni1'1e
a ger1ei'ai.ing ctompziny and 21 Iictensee or b€1,V\----"ff€;'i'1 li{'.t'?1']&S(':L'TS, {or
ii, iiiiiiiii
96
at period not exceeding one year to ensure ree1soi1e.h_i'e of
electricity. 'I'herei'ore. the proviso which einpmve1*s:iii3:eitic)tn--.oi'i'
tariff in case of shortage of supply ciiietiectrietiiy .;is.o"ri!ycioVeiWeer1
a generating company and a iieensee éirid iiot_*v_iri' 'Of'1'1€1j czlse.
"i'herei'ore. Section i 1(2) provide'e.._pti'i.2iit., whe.:.i1'.iiei'_e ciii'e.¢7i.ioi'i
to suppiy electricity toafitatet'g'i'i.d:'-;iiid_2tiie fixed for
such supply by the restilts in adverse
financial inipzlcion the Appropriate
COInff1iSSiO1'1:_.i'iEiti"_'bt%i\'"i'V to offsei the adverse
tinanciai 'the_.~s.rgLiineni that the word
ighortagep oi". 'is specifically used in Section
62 and espanie absent in Section I}, the
sho1'te§ge o.i's14113;V5i3I_Voi' eievct1"icii.y cannot be :51 groimd to exercise
1ind.er_Section it or fix the tarifi' for such power to be
s'u.p'p'i_ied"'vis"wiéhoifit: any substance. Section 62 applies to a
9
case"'whe.re' there is no direction under Section 11.. Once the
d'irection"is granted it is Section ii(2} which is attracted and
_ not Section 62,
87. it was contended what the Court has to keep in
mind is not the eiiect. but the cause for shoi'1,2ige of scarcity of
electricity. Oniy a circiimstance such ti"ire2ii to fhe State,
[,L//We
'J9
MU per day in the same period last year. "mere ya;-felt:sVét'tii:"21'sti(:
reduction in power availability from its sharetot?li'(:ertt1;alV'«
generating stations. As against theeX};3eot.ed'l.4sha=fe'of 1:542 h
daily. on an average only about".lOUOA' MW ._was«.
resulting in a shortage of 500 M'ylVv'..__'l'l'1c-rt "Bella-t'y 'V'l'h'erlit1alllPower'
Station of 500 MW. C()I1'}lI1lSSl()i},Ed at-.tl'ieyAez'1d §i)'1'--.u._liyf 2008 unit
experienced 35 trips in tiliiel _Oetober. 2008. At
present the unitis operzitizig at.fpar't': V.c:t.t;¥"a1<:ity. resulting in
further power _to~__the_; ,ltjle;i1a1'1d for power is
expected to i1iere--as_ev tia§'11'uai*y 2009 to May 2009.
Then tabular-'r:Qi_;i;nn'«.i_s'-giver: showing the availability of
electricity; .;;:¢cu--:t~::»u_-_y"::ec;,.u;_:--~¢:d and the delieite for the mcmt.l1s
Jantiagryv to May'-2VO'0'9. They have also i11l11'()fltl('€('l power Cuts
'ir1.th"e S127:-'1iVti(*.""*.l"t'. is in those eirc:tm1stanees. special measures
Awelreg re'q-tti'i<:;d to_--protec:t the public interest. lrt that" context
they -felt. itis_viAi.i:1'ipe:"ative that all power generated in the State.
it -'~aitteludirigpower from those who have gone on Open Access and
l.aije'vex;oorting power outside the State, be matte available to the
"--.l:;State Grid. When this is faeilit.ated. nearly 500 MW of power
fwill be available to the State. 'l"l1e1*e.lox"e. as a matter 01' p()liCjv'._
in public intere.~'5t.. to mitigat,e the severe power crisis in the
.. ,l'fj;"~.__VSection 2{2i5} of the Act as uriderw
H33
"73. The word 'generate' is also defined ¥.1..1.1_\<kiI.*_V'4Viu""ii'f';.rc3"2"'i(.?1
211;. Section ?.{29) as under :-
"(29} "generate" nieaiis'~io prodirce: V
eleciriciig from a genwaiirigg sliaiiloin for.' the'
purpose of giving supply to any. pn3rr1iS=::s'~or~. V
enabling a supply io be so gioen."._ ' A
74. The word "generaVtl:li--ng."sta*tion" Hisvv«de.i'ined under
Section 2(3()) of ihe Act
"2(30}'-- "gei1é1'3ting...VV'i.._ stai;io'n" or
" station?» ' 'imiaris any » {9iaiio'nT '_,l'or....:ger1.eratirig
eleciriclgfiy, inz'jlu:iir~:gari1gl9u_i*idi;'ig and plant: ioilli
siep--up i'r:ir.2,sjVo'r¢.:n.ef"'.'Vfsrpii:th.--~ge.ar;' swircli yard,
cables or 'oiiigr app':1.1'l'L'l?'C£Ijll' eaiiiipr'r1eni, if any.
Lised';jozqlfiiai puf,ooS~<3V'and ihéllsiie lfiereof: a site
ir'iv.tende+d Vio.v-b._e4"us'ed"j'or'i a generaiirig S£'CLLiOI'l,
and any biiildiflg usela~-fo,r= housing the operating
sia/fl, of. a '=.géfiierafi--rig siaiion. and wliere
eleciricliy is: ge'r.1efalé'cf" by wal.er~pou>er, irzclucles
per!.si'ocks;-» head and fail works, main and
v_"'i:<3g:L_1l.aiir'ig ré$evrvti.ioir"s. dams and other l1_i;draulic
V l"'z.oo'1'lC~3. but does ROI, in any case include any
' " ..sub_¢{e:iiai«ioi'z '7,
A word "generating company" is dfifillfid under
_ A "Generating company" means any
Company or body C01'p01'3.t.e or association or
body of individuals, wheiher iricorporaied or
not. or artificial juridical person. which owns
or operates or maintains a generating station."
I
E
i
L,//
76. The word 'grid' is also defined i1r1de.z_'_"£he ~ at'.-.;1." or
Section 2(33) as under : ~
"Grid" means the high ooliLofge'ee_baelrbo'n:e,_
system of interconnected i'rar1'srriis'sior1 lines; .sub--»_
station and generating plants. " ' " ' ' 3
77. The word 'li_censee?----is...i:i--eili'1~2ed aiSc-oiion 2 (39) as
u11der:~
"licerwee" n=eam.'ja j9e,i"s_or'i uzfio has been
Qranied Cf: i'i:'@',7h'Se iifloicfir' Seciifln *l 4 7
78. Tl2e¥'v2o_:7i_:1 V'cof1.siIiIie1r:':VVisVeiefined at Section 230.5) as
undefi-K L
A "consi.':.m"er"' . fnecins any person who is
siipplied wiij'h '._ele-cirieiiy _]or his own use by a
,li'ci;'nsee or» the VGoz,!ermnen1. or by any other person.
_"e.ng§igeg:i in Ch8w'9~l:lSifl€SS of supplying eieci'rieil'y to
V l'lie"'1oiabiir; under this Act' or any other lawfor me
Lime in force and includes any person whose
preniises .A:Cir.e'_]'or the time being conrieciedfor the
A "p'iir;:2os--e-oil"receiving electricity with the works Qfa
'~-.4lL'C(:'ll;S8(;';~"U18 Government or such oiherjoerson, as
ihetose may be".
* The word 'supply' has been éefined under the Act
Section 2["/'0) as under 1»
"2(70) "suppiy"i in relation to eiecmciiy.
means the sale of elecririeiiy to a licensee or
consumer" '
fly
introduced in Section 11 also, it means ting".»(§i'ef€;;.a'iL3iVty
generated by virtue of the direction to operate and ;i"1;1inté1i:1_¢'tis F
to be suppiied to the iieencee or (:.'u"stoi11er'.. o1'_: .theb.;;enei5atii1g
company oniy. It serves no pL1i'p()s"c, '-Fol' 1'.i1£.1f.._UCJV€i'i':1;Iiv;?i'i[.'~'3
iI1'[.f3i'\,rei"1UOH is not required;., '~.._'1"11e1*'eiToi*(:,_ 't,i1{;~, legisia1tu1*eV
advisedly has not used the W()VA¥7£1<u3.b'"h:L}.1')!i]§'\'/.. in 'Section 11.. it is
because when 3 g"61'1€i'&1tixfigé,"' st2t'tioVn:is" and maintailied
properly it resuitgvivn The electricity
thus produoed of 1,i"c1I1S1T1iSSiOi"1
lines to iioower Cannot. be exerciseci
by the E+3tat:_e.GoV'e1*nn':en'i:._oi=--.lite-t Central Govemment only for
the purpose of ii'1t:ireétsii1g."g.enei'ai4ion. only for the purpose of
operai;io'n_ai'1d inzaiiritlenance oi" a ge11ei"2i1,ii'1g station. When de~
iieensingiilEioerglisation is the object of the Act, the private
Aenti?ep1'en.e'u.i9Vsiwho are operating and iiiaifitfiiilillg these
gerierzgtiiigstéitions do not need any direction from the
it €~ovei'ni'ne_n't. It is a commercial venture. If there is 21 demand
" thberfnarket, they are bound to put these genei'atin,g__>; stations
Vi _to the optimum use and scrupulously i'I1aii1¥.£iiI1 the station so
ft:hat. any hurdle in mnning of the gei'1e:'21ti2.ig statioii would
cause financial 20555 to them. if no eiec:1'i'iCity is produced the
conspicuously missing in Section 11 of the Act._i:he.Vldire(ttion
issued to a generating station to operate and' maintai11_fav'«
generating station includes a direction tn .su'pp1_y the electricity
produced by such generation to tl1eA:'St::.?1-ted.grid.' ._'E'E'iis: (ie_es.Vrio£;
mean supply in a comrne1'eia_l'~..gense' ,i_nd:i(§a;ted"' in the
definition of supply in Section g.(..'.7.f§)"as"eontra 'Cii'S.lfi,K1L£l{L1lShE3d by
the meaning ofsupply inlE':eC--ii.o--n' 1 I is not meant:
for supply of eleCti*ieit'.y toa" errnsurncér'. if is only
when electricity isffuto be'supp1i__ed:ffo a person other than a
licencee or a cu.s'to1m.ei* i;-'~e'e1iion" 1. __1__is jnvolied.
84;Tnis i11ean.i11.g'iis_. implied from the words used in subv
section {2} oflsectienA"T_s1','~.-"EIt provides that the Appropriate
---.y_Con1_n'i'ission_n1ay"olEis.e.t' the adverse financial impact of the
'Y_ydir,e'c'1;.ionsV"rei'eri"'e.d to in subsection {1} on any generating
company ii1--V--"s--:.ie}h manner as it considers appropriate. if the
adirection by the Government is only to be understood as
'_opera--t.e and maintain a generating station and not supply of
-.ly'ele'etrieity, the generating company cannot complain of any
lakjlyerse financial impact. because the eiecrtrieity so supplied is
supplied to its customer or a heeneee for the market' price
agreed to between the pariies. Similarly. no sL1e.h c.iiree.t,io:'1
requires to be given by any Government if it is for C()ITi"i}?.i€1'(YiE¥.i
supply. Adverse i'inanci.ai impact means
generated by virtue of the direction issued by iiivieii
is not feteliing the generating c()i11';j'any {::"1€.'_.}f'i1.'A(l"C?';:3'_ \'x-'hieh"~vii.
would have {etched in the €\-'('_'I'11 hf the'ii' st1ppiyVii':g'.tb~..the
lieencee or a customer. i.e.. l€VSSv'§{hVE'1f1 the saute.'-._£1VV'ijias"a.d\rerse'
financial impact. Their__iriterest--------is"V-protected"Lzndier the said
provision. It implies if the EiV(i'(3'£'1'_}'(3§if'1;'Vy:. se'pi<od'Li_c:ed is supplied to
the Government Va pri'ée"}esse'ithan commercial price,
the said pr()'\/i..si.0r15jiijite1*1ds_ tdproteci; the generating company
from su1:l'1 21civer::"é: -i:firiai'1(:i:'.aV1"imfiaei. The st: ') 31v oi' eiec~.1.ri<::it\.' in
_._ V ._i ii- ,
pu1'SLlaI1(3t?~.Qf; the d.ii'eCi'1i:3i§"*--by' the C}0ve.ri1111er1i. could be clearly
gathered _from the 'ai'0re'said provision. What is iritended is
'ap.prr)pi'ia't'e Ci(}i";f\11I)t3I1S'cii.iOf1 as a eoiiseqtteiice oi' {I011wCOI11I'I16I'Cia1
's:.uVp.p1yia.5V'eQasi'dered appropriate.
The Apex Court in the case of TATA POWER
LIMITED vs RELIANCE ENERGY LIMITED AND
. .ii'.1O'i-fatks [CIVIL APPEAL Nos. 3510-351 1/2008 AND OTHER
" CONNECTED CASES] had an o(?(:asi()ri to Consider the meaning
ii that is to be attributed to the word 'suppiy' as defined in the
£{fi_('J",,.,. I.
Act when the said word is used in different Sect.ions_ '4i'r1lV'd~li:iTe1'e111'
Contexts and it held as under : ~
"the legal principle is__ thatflallg it
dejinitions have to be read. :'S--Lai;>Jieci:,.".;i,('): " the"; .
qualification uariou,sl_i,r expres_sed "in. 2 the vClQ]}iV:';?:I:1V'.'l'()"rI
clause which created il1en1_and_ ii..niayl)e _l'Ehatveuer1
where the definitionris e)_fhaiisltijr3eiinasmiich the
word defined is said to in-ecin a__.ce-:fiain'ihing, it is
possible for i.uo'rd "i'o:V':t1auet*..3orn7e ..,n_%}i.at' different
meaning iin sectionIsA._oVj" ih'e"1Ac1: depending
upon 'That is why all
definVi.rioris.' ::;:A:.stat=:.ltes Lqenerally begin with the
C]lLiVv(Ilf[j.j~lrlLVCv]V""',L£2§5Vl"C)'§;'"w.j;tivt?,l£3.S§S there is an_i;i_h.ir2.g
r'ep'ugnlar1i to l'l':...'.:?. :2:iltg'ect« or eon text '.
V Accord.irig_li;«.i:l1e word supply' contained in
refer to 'supply to consumers only' in
it a Section 23 and not to supply to
On the other hand, in Section 86(I}{a)
'sup:ply"';:*ejers to both consumers and licensees. in
Sectiorl 10(2) the word 'supply' is used in to part of
the said Section to mean two dizfereni things. In
i first part it means 'supply to a licensee only'
and in the second part 'supply to a {;'()f't$i1Ti'I€l' only'.
Further in first proviso to Section 14, the word
supply' has been used specsiflcally to mean
'distribution ofelectricity'. in Section 52(2) the word
EX,
'"._t1'1e._"ger1e_fat1_ng eompany to operate and mair1tain the
.7..genei'a.tiug"station in accordance with the direction of the
'electricitytfifof supply to the State grid oniy and not for
"V.e-ofimiercial suppiy. Direction to maintain means to keep the
~ .t.geAr:§ere{ti11g company in good condition by eheokirlg or repairing
"--«.VVVitV'19egu1a1*ly so that. the productiorl and sttpply of electricity in
to the State grid is unimpaired. to enable the Cmverlmlem to
Supply' has been used to refer to
electricity by a trader'. V
To assign the same meaning to" "zf--1.£{~..;,;jt)fd'--A
'supply' in Section 23 Of the
{he interpretan'on Section. 1': 01.1?' .o;3i.r:zior1'V,;o '
necessary to take rect>:m*:~ie to Wthie
hClI'm;OI1iOL§S constru.eu'on cLVr'fi:3.._V'Ar'e'.r2;ci l.fte'--:~'t§1tl'tte a
whole. Interpretat£()nV_ of z'fic£§$pL1t'dI5ly "rnnu_sI
be premzlsed on iIi'1e.V:_s£¥Ctt:Lte. For the
P1U'P03€ Of. C0"55'V559:i.Q'" C1: and in
paJ'iict1la:;~;f'o§_esce}*.tai:1mg§ thereof. the
entire 0., whole and then
chqp_ter"V~by' c}'3§apI¢>(§" section and word
by LUOI'dfi.': _~.
86. Tlie.1'e'fo1fe,'._ vJt3_21t'~f3ec1.io11 ll intends is :1 directiom to
G-ovAef'mner':i:.7'tjj The direction to operate means to generate
meet the extra orciinary c.iz*Cmnst'.anc:e a:"ising out of scrzmtity of
it
electricity to meet, the public demand. if-{ere the to
supply the electricity which is generat.ed in .ge.1ile1tait.ilngl'
company to the State Grid only 2;.-r1'tl"n«r,)t& :t'oi<1.lieir
licensee or custoiner. 'i'I'1erefoi'e. l'i.lie.-_ ;<'1I'gLii'1}.€1'll;. '.i.ha,_l."--.Vi::l"ieV
Government has no power to iss__ue_di§eci'.ion -tin:le1'gSec1,1on ii.
to suppiy electricity to the State--C~r:i'd. iS"-.\__V]'lhOl.l{"£1.Uy'lS1,1bSlEi1"lC(3
and accordingly it is rejec.ted;- S'
Point No. *Arti,eIe'
87'; llll »ei§:e§c'ised State Government is to
regttlate ,=.-md not 10 prohibit: or restrict
' 1
supply' of eEecti'i(:ityi_ I?'-1_'i1l1'1~al izicie, a direction which totally
yproh._ib'i.tsE t;:he__siipplyvefeiectricity is prohibitive or restrici.ive of.'
S7.ythe.l'righ1:a_toitriilie, commerce and intercourse th1'ougl1out. the
t.errito'ry of violates Article 301 of the Constitution.
'Vl"fO'\-&'6\/"l':I.f,i'i\I'lI.Cl{3 302 empowers the parliament by law to
;1':{31}n3OSf§& sttch restrictions on the freedom of trade, commerce or
-..li'fntc:1'coui"se betweeri one State and another 01' within any patrt.
"--4_lol'"l':he t:errii,ory of indie. may be required in the public
interest. Article 1303 prohibits itlakirig oi' any iaw giviiig,
aL1th()i'ising the giving of. any ;.2.z*etcrei'1ce to one State over the
other. or making or authorising the rnak_i.I_1_g»VV'of';~ éivgy
discrimination between one State and anothei'. by virtue" oidiny '
entry relating to trade and cori1me'ree"*i«n aiiy_;«oi°"i.he lists "in
Schedule VII". The said prohib:'i,ioi'1 WoL1I--{i 'riot e'ome.iiti i.i1e'«~\-v'¢i;;'VV
of parliament from F11:-}.k1'I'1g a11§,;{"'i~.':;\.v 'giving --oi"';2iLi~f:ido'i'i11g {he
giving of, any pi'eferenCe;_.oi' {11av].*Zi"i'"ivL§"W..5-.;v§':'&i_i1thOi'iZi'Flg~-'ii'1€ making
oi", ariy discrimination. ii' law that it is
necessary to do for the with a situation
arising fI'OI11.' in of the territory of
India. oi' 21 State. by law.
impose 1;?-,"va2Ll(3.}\'.~i"eéiSQ'i1eii13i@'"iT7éiSEETiCU'Of1S on 'ihe Iieedoial of i'i"3.de.
cor11ii'1ere.eor?'ii11.ei'oo£i'ire.e:.€;i;*'i.i:i§ within that. Siaiie as ma-iy be
requireé:i" ii} pzibiie _ih€ereSt.
-
.se;._V4"~<:;«;e:"'Apex Court in ATIBARI TEA COMPANY LIMITED Vv$7"eg':f;iTE or ASSAM [AIR 1961 so 232] has heid 'that. ihs: sinaifi object 0'/'Article 30} Obviously was to allow the fr.eé 'fiozo of the stream of trade. com.merce and intercourse '..V..i'hi'Ql,£ gi;iOLiif {he i:'errz'£'ory Qf India. The doctrine Qj"I:hefreedon'1 of vifode. Commerce and iniwcourse eruinciated by Ar2'l"z'Cle 301 is not sukgjeci to the other provisions ofihe eonsi"i!.uu'on but is made siil2jecI' to the other pr'ouz'sz'ons of Far: XIII: that means {hag once i M6 the width and amplitude of ihefreedom ensh.rir'ied_i;_1_'4Artieie'£301 are determined they cannot be coritrolied by'?.an_gj'e,oroots.t_or1V' outside Part" XIII. It is obvious that o-;hai'e'i»er rrzag; the 'content of the said freedom it. is not ini'endeda'!o bean absotutie_j?oe.eé"ior;:1; absoluiefreedom in matters of co1}'u?.r__1et"i:e "ari'd...v ii5iiercoiir'seV would lead to economic cor"lfusion-,-~§1."'nofct1aos arid. cz..riar'cI'iy,- and so iharfreedom guaranteed log A_rijt;cl.e 3'Oe.1__ its made subject to the excepiiorls provided_ by;"Vthe* Part XIII. The _ freedom guarojiieed__is =ltrn_ii'ed iris the mdrtner specified by the 1 said Articles bzii"*£f[is Vnc-t_"i:'rrui'ed___l2y Vang other provisions of the Consiitiit'ion_ outs'ide.._;5ori'XIII;,_'Fhai' is why. Article 301, react in its proper cotfi(exi' olrid"':~fiiIqje'c't. to the limitations prescribed by me other s';"Ql(:'i2Qt1iAt"ff_CiE3S in "I-'art'XIII. must be regarded as imposing la cori'si'iti;'i:iori"alo_limitation on the legislative power of Porliam.en.l of the States. Wherever it is held that Ari'iole__ 30:' the legislative competence of the Legislature in guestiort' will have to be judged in the light of the relevant VI ofPart XIII. The freedom of trade guaranteed by Article VI _30_t is freedom from all restrictions except those l.l.?I'1lC}'l. are :.V'provid.ed by the other Articles in Part XIII. 'I'I'1e rzori-obsturile clause referring to Article 301 would go with Artmte 304{'a} and it:
indicates that tax on goods would not: have been peifrriissilele bait' for Article 304(a} with the nori-obstanie clause. 'l"hr.f_s i.fictider1,tk.tl.ly helps to determine the scope ahdlfll i'uio'__tl'i«.A Of .the._ freedom guaranteed under Article 301: in other 'it;aord.s. }i_rt'ic.le 'l.;'-iv another exception to Article 30].
89. Again another4_Cor1s.lit1,§_tion._V_ £3_ez1ch of the Supreme Court in the case Volt' TRANSPORT (RAJASTHAN) ;~I;i1%{.[Iti'Jt'El2:i._ vs '~sT'Aj§E1--"'oE.5'RAJAsTHAN AND OTHERS that, the concept of _/reedomV'llof"trade. chriimerce andWinter-cot.u'se postulated by Article 30.! h_1ilsi:. be'~iur1:ders1I.ood in the coritext of an orderly society and has "part" Cor'1stitution whicli envisages a dtstnfblzttgun of poi.uer's~£3'--e'r'toeen the States and the Uriion, and if
7..so tvar'idersttood:r. the concept. must recogritse the need and the leg'i€.irh'acy oj""SjOr.*7"'ie degree of regulatory control. whether by the 'Untori or "the States: this is irrespective of the restrictions Q V' ll.tm,t3ose.d bl; the other articles in Part X111 of the Coristttuiiori. As
--..lfreg'ttlatozy measures do not impede the freedom of trade. 4
"'«.Vcor1tuIierce and intercourse and cornperisatory taxes/'or the use of trading jactlities are not hit by thefreedom declared by x-'-lrtztcle
301. They are t3X(?ll.tCl~'_'C£'.fI'()}"T'l the pI.lTl.?f£'I.l.' of the }Z}I't)UfSf.()?lS of commerce. and inter course through the territory ,£';i7.l'I"id:lEi '.si1"a.ll be free, and it is a constitut.ioi'ial right. subject t<)"'i'est.iiAic>tioiisas provided under part XIII of the Co'rJ1s»titt'iti_on. -;"l7l1:ei-.gVi'oreV;VVythe right to carry on trade or business not an ii,bsolti1.e'=--'ri'ght'.--..y This right. could be curtailed by 'Fhei..ui1d.er}yiAii;g 'H;$rii'1cipleV behind this cu1'taiIrI1et.1=tz0f 'tv}'If5'--::i+ig:fi§_2 is interest. Therefore. the makers oththhe' iriacle a very fine balancing ac4!_:be_twee'ri' public interest.
in other word st to public interest.
Howexren of 21 right. but it is only regulat;irig the': rrighii. no such law is required. The only CO'fldilt,i0nx'iS the; powvei" to reguiaie must exist in law. This pejjweii to is: provided in Section 1 I of the Act. by It is a. statutory right conferred on the :2 a"ppropi'iate'"«.,Goi{ei'nr1ient.. By exercise of such power the govern-.me:ji't' not curtailing the production and supply of it '4"..eiectricity';~Or1 the contrary the direction issued is to operate _2t1i.d'=.m'aiiitaii1'1 the geiierating st.at'.iori. The operating - ige_:1eratirig station means prodzicing elect.rieit'y and supplying " » «the electricity produced. ii. really facilitates the productiori of electricity. it does not retard the production. Similarly the l2"
electricity produced is directed to be supplied to 'I'herefore. there is no prohibition or restriction o_:_f (éu'i''tailr1rient '' of the right to supply the eleetriciiy'"§31*edu(:ed.;«'i;he._:iii*'ectio'h also facilitates the supply of electricity, §i()tvexre2r._--vit,iie elec::1:i'i«:tyit'y'.VV supplied is regulated. Instead ot'.._supplyi.iég._to of their choice. they are directed to the State Grid in public interest i.el.a.' to'A:1ia_l{e it 21ye.:il1la,l:j'lr: to the public at large and not to ariy_ individvual 0'r'«a:'i»--p_articj.).ia1* customer. This regulation iS.fOiT'E15:A:1_1f.I.T1itCCl __period'' to tide over the scarcity of electricity,_ Vby'<.;t},he c.,e_3i':'1_rh::>iri« ..1_i_'ia_115. farmer. 3-1 worker. and people it'; lower s{:taI;_a"ot°'soci--et:y,- to whom the State owes an obligation toLmake"'-axFa.iIa.ble.i.electricity. which is the National Policy. ; 'ii' such 's:ipply were to have any adverse financial irrtpacit orii:the"p.1'odutéer of the electricity. his interest is also ;:A)1"-otectecivv-23:12dVer.Al.i'i-aw. Therefore, the producer cannot. have any gi'ieva'i1ce.V_'ii:i_is the interest of both the producer and customer " _is'*tiaker1 care of by law.
The Supreme Court in the aforesaid Tata's case had "--.a'fi'occasion to consider the regulatory scheme provided under the Act. It held as urider : --
"In the scheme of the Ac: wherever reg;.;La:'ic§Vii . Qfgerleraling companies is necessary [he s.r.--uL'rfr*ze> I1;as:. been provided for. Seciion 11 and '"€.O'g providejbr adequate 1'ndicaI'f0r1g.fi't I.iiis ..beI'2.cz*{]'.' deal with extra ordinary si1rL:a}:{orL;_. A'A ge:1eI~'al{«ng--,u"
company, if the ZiberaZ?za*ézfi0r1. and pr'1'i:a£I:§{aiv:Za1e1_ policy is to be given. effect lobrrrusif be I10":
10 enter into an ag'reeI'neni""ar:.d trier.pc1rt'icaZar'"lor1g term agreement with the agency. terms and conditions of sueffian agre%erfierf:i£'"r;oa2eLver. are not un.r'eg;aia'£ed.; Sachg agrf:ee.§'7zVe:1£':«1's su.b_,iec£ to gram of a§p:5uaie_V ('3r)__mfir7it2;:s!(:rrz.
A :V:bger1eAraf.:;"12_g"_ _hL'?LS to make a huge z'nve'sIrfr:er1VI.' arid" given Io it that subjecz to rhea"pérvvfsiorts?Qf7.§iie Act he would be free to ggenerate eZe.cZricii:y and supply the same {:0 those ¢,¢v;v?1c:A'-rir2t'er1d to alter into an agreement aw': it. Only V' " a'»n[tt21fi*r1..<::V'i:3Vffi.'««1e said statutory policy. he makes huge ir'L'veSi"rr;en£r.,fly' all his activities are subject (":0 "~regL;!ai':3r;: regime. he may not be inreresized in r7n:I.'(ifi1_;; mve.-'sIn1enI. The busfrzess in regard Ia °a.4',locau'.on Qf eieci_ricz'i_y ai the hands Q/' me dgeneratirtg cornparzy was the subjecl. rnarier Qf {he Zicensmg regime. While inl.erpreI':t'.ng the statute it must be borne in mind that' such. a mechanism should not" come back. That, hoavever, would not' mean thai the generalmg company is abs<)lu1.eIy ' .
" w ;Iv'oinV'§ .Vf'Ap1A§i*op--.ri--ate Government"
Proeureme:o§. Centre in N0ve:nbe1' 2008. In lijsjxienlojrenllmstarlctes. the n12;mdai,e of the AC1 is clear. Only the Government. which is the Appropriate Government. can taking note of the larger interest of the Nation as a whole. Merely because the plant is in l{'a1'natal\:a it would not l34 free from all regularfion.s. Such z'egL.ziaIic3IjI:3.__l V permissible under the Act. The PcJ:4'li':arn12e.}"'z'i;.ll . thought if necessary to promde fo'r'"=-s}t>eolfic"g provisions for the purpose of 're=gLT:£ai1i'r1g.__"£he_ M jurzctiorlzs of the generaiing l'«eo:n;f:ar1iese...e 'theses' provisions are speegffiic provisions v'z';.<ma-msl'€.l1e§o'i'her general provisions which ieilce' r,;1izI'1.in."-tfjae' 'abridge the function of ti1'e..V_distr'iblLi'iolr, ~li.'rar1sr71.£tter°lan.d trader. ' I V 2 M 95- K-l'l"1€31"f.5'l"(l3'l'l"¢.~l.rl-lthf/I"}31'QVision:--;A.of7"':3e<:fiioI1 l I of the Aci. is regulatory inlnal.-{1r_e".V 'it is"1"--:lovt, .2li"~:".¢:."l'_~'atfi:C{'iOI"i as contended by the counselV"forllVL'l'1€t:ifpetil§:lol1era=._lé1nd, _tll1"e1*el'ore. we do not. see any substancein the saicl"oeo"rn'_.elf;ti'ol1 also. contended by petitioner No.1 that it is involhved 'llf:tef'--lstate supply. It has supplied elecrtrieity to i give the State Government _jLll'lSCliLTEiOI1;. The concept of My St:ate~My Peopie has been deprecated by the Apex ih<~31'ei'()re. the order passed by the State C:UVC?:'1'1;-'f'1'1.€fI1v1-._i§SV %}&}11--L}.fiy' ' withoutjurisdiction and is to be set atsidrx
97. In order to ap}V3>1V¥:_r':iatcv§«'«--
necessary to see the ciefinitii3'2.1:VV:.V'<)1' the" "Q X1:§3£3VaV;opri21te Government" as Containcfiuigi ..<«).f'ti"1e* A(:L".J 2 {5} "Appropri;1fe*.'CR3zge'f;rz}'I1¢.2fi:i."' ij;%§Q:1s. -- {a} Thai. u V (1') Cf)r1'1par'1;; wholly or """ H V (1'f) .__ in£'er~St:at'e geermraiion.
V'(fcar'zfsn1i§$;ic§Ar:," Virtazdiirg or supply Qf electricity and LLiitit-------~réspecr to any mines. oil-fields. ~ ' natiorlal highways. airports '.1£%.§é:{?1C;f:I;;:lpf1S. broad-(tasting starjmrts and any 1;.:%)1'ics Q1' dc{fer1.ce. cioctkyarcie rmcrlear' power installations:
in respect' Qf the National Load ;T)espaI'c:h Cerltre cmd Regional Load. I)espaICh. Cer1:ire.'
(iv) in relai'z',or1 to any words or electric installation belcmglhg (".0 it or under its cronzrol: .
I36 tbiin any other case, Lite Slate ('.\tOL)¢Vf'I.'.1r."'.i.l'?TI.§';V"I1!"'< having jurisdiction under this Act.
98. Section 11 of the Act e_1npo.wAers'tithe' V'aopre,;3i*i£;at.e Government to issue directions.,_'I'he appiopriate' ;Go\reri_i§ii1e1:t. is defined under Section appropriate Government means Centrai._ M 'State'HGVovernment. in what cases directioiisv:'c'arii.."_:toe the Central Government is :gé1e3gtif; set oL'1Lt':in v{.Ei.}FSt£b*S€(itiOl} 2(5) of Section 2. Governn'1ent.. Sub-
ciause (a) is clear. arid no interpi'etéitioia. is giving the words their piain and ordinary naea'i3.i1ig,.VtheA'--intei1tio1'1 of the parliament could be g;:athere~d.;b_.,cI:n respect' generating company whoiiy or partly V'-om3fi.ed.}13y..,4it,t ,o'rA in-.relation to any works or electric installation beiongiiig E-.4(,)"Y'L:?g'§ Gr under its control or in respect of National 'Load Centre and Regional Load t)espa1.ch Centre. the ..Z&;5propi'iaite Government under Section 1} is the Central * « « ":'xOV"\§'€1'l1I'i"1E3I'1t..
99. Section 2 (5){a){ii) is in reiation to any interstate generation. transmission, trading or supply of electricity and fi,/ ......... ,.
*7 with respect to any mines. oil fieids. 1'ai.}wa1ys. vTi:17a.ti()1'1a1I highways. ai1'p0rts. tc1leg1*a1)i1s, broad("21.sstE.11g s:tai"i.:.>1'_i4s» ,§1iirf§~ at-i";1y works 0fd<=:i'e11(?t3. docrkyard. f}L.1(',I(;'Ekl' power iI1S'I'&tl}21!:f().1":'tS. "tide '' Central Gov-'e1'm11enI'. would be the 'C1:!V_:):I,)I--V() i-,.)'1",i£:"1t'iE': G.;m».'cfi"rm1ci1't'.
100. In the said sub,--c::1au$€*«. the wc§..i--'.r;f.t"'s«up,£7l_fi* electricity' is used. The argun'1ef1t i's.the word"'i!éttef,state is to be prefixed to the said "'W.§JI'd..7';Lt;}iA(§».i:i' it" 'I',§3adS 'inter state supply of electricity'. The in respect of inter state supply 01', €'.Qc't:*ic>ity. .2%.p15i'5é)j:)1jié1tt{" Govc1*m'11er11 is the Ce1'"1t'.I'zi1«G(ivc.s:iitji1(11'itf1jmitt';,t1'1<ei'eEI5i'€';the State G<,>ve1'1'1ment has no powé:._1' to'issue'idii'cQt'i0;i"tiricier Section 11 of the Act. In order to 2ip.p1't3c.:i21{'@ this ,.(:b-.r1114<;'r11.1'<)1'1 we have to rcacl the sub» clatisc as a \2\r"i'10V_}€3.' it stéxtesi the Cent1':--;1i Cr()V(;'.F1'"1I'l1€1'1¥I in relation "1.Q 21n.__y€'ii':;ter g€vi"i'f'.'.'I"3ti01"1. transmission. t.radin\;_§ or supply i'=Qf"é;igét't.1'iV(:'ii;y »:1ui'1A.rj "v;it;11 I'(;'Sp€'.C1'. to any mine.S.. oil fields. railways. natmriai i1_ihs:,ii*1ix;*2i'}/5. ai1'ports, t.<::1egraphs, t)1*<)21(i<.tast.i1'1gg S1E11,i(_)i1S gaind anvj w01'I<.s of d(?I'enc"e. <:!<)(?§<ya1'd. Iitmieai' pmvei' ./ ~inst.é.i'i*at.i(.)1'1s. 'E'i1e word i1'1t.e1*--st4z1te to be p1'ei'ixecE to the ' ««--'v\7o"3;ds ge1'1e:"at'.ior1. t.1'2msn'1issi01i. tradi1'1;;'o1* sttppiy of eie(r1.1'icit'y'.
"<_'I'hen only the said pm»-'isi01'1 could be 1't'3&';1d to I}'1€°.£-11') énterAstat<:' supply of e1e(:ir1'(:it.y. Aftciw 1'c:i'e1'1'ir1g.g to g;'€'1'1€1";'1Ei()I'1, it".
the State. To eus:,i1*e the proper working 0!.' those. 1'h.st.'aiIzit,i'ons in extra~oi-ciiha1'y circumstances the Central C1'f:).\"'(?l'v1'i-E1V'}VV(',11"'t--.r'gé1lt' exercise the power under Section .--i"i".~..T1r1erefore;-V'4inte1T]si}i.te b supply of electricity has to be Lir1ei<e1's:f._cioti iii" '1,E."I{:;"V&'\..OI;VV1,t::' i~;t'i.!_i which it; is used in the said .St)~~b*{?121ti':&Z(?, iigtn-'1_ei'y_V"'ii'1'tei9~st.at.e' supply of electricity to the iI1St'c_iU£::1A-l';:"(_)I'T£=3_, spec_:i'i"ic:_ill_y..'§mei'1t.ioned in that subsclause which~'e.xt§it1:§'i,Vei}}"'Emloiigs to the Central Government. In other vve'i'Ci's-sin 1*-e.S{p_eet'V'_off i1"it'e1'~st,at,e supply of electricity. mentioned in the said GVo:tte:'1i1:i1iVerit has no role to play.
it; is iocat,ion of the generating COI11[)E1I}y"'£i_Ifii'tt within the geograpiiicai jz.1risdi(.:tion of 'c,i SVtf'c'1V!l(? is 2.1 (TI'ff.iCE11 factor because the Stzttes ijurisciicttioii ca.1j111ot extend beyond its iaotindziries. The mere :C'~',XViVS't{",1TC'.t?.:v'"E25dE'rtTiii1'1iI11tlS supply ihter--si.ate would not: tiake aw.:»iy_ the.-_}i:_1;ijsdictio11 of the Stzite Gr)ver11mei'1t: \»vl'1ic:i"z. has to ideal vt'iffh,V__t,he extra~ord1'na.1'y ('iI"(?.L1I'I1S{.E11](JCS existing wit,hi1d the i "'Sta,.t._e. However. even in cases where 21 gerierating s!:at'ion is at--.._si.tt51ated within a. State and ii" t.h21t' g(31"1€I'E},Ul.'lg stiation is ;"suppiyi1'1g eiectricity outside the State to 21 Cemlral C}()V€?i"Il1'I'IQ'.1'1t. est;-tb1isim'1ei'1t. E-3.3 meittioneci in sul:i--<"tl;2it..zsse (ii) oi.' clzmse {at} of {Lie subwseetion (5) 01" Sec'tion 2 the ju1*isdie1,icm of":i.t;e "--VSL:;t.e Government to issue direction under.Se(r1i011-ji"1 V0E *'L~!;1"ee.A{'tf". stands excluded. if so ir1terpret.eCi'"'iheref isMi'i(:Vf<éOnE}ig;t£ 7.01"
interest §3e1weer1 the S1'.2u'e C";r;:)\§%:§:*I"i£11e-91¢! -.';11'1Li"
G0ve1"r1ment's power Lmdel' th:-:<~_V }\.€,:'1 as'"l:)(,)tE'a _tI'ae €i_V()'V've.r1e1:11'1c%1'1Is V can exercise this })0\Ner in pLi§j'%i.e'~.ipt.e1;esi--.,Q2"li11'1de1~ the Ci1'Cumsian(:es na1"rat.ee! -L0 S€(?§i()I'} MU} of the ACE. 'F11e1*el'0r_e. in''' the Appr0p1'iat.e Governmem... :;g;.{-' ALE"? is the State G0vern1:v1_/Ni' :,5Vé:E eerly exercised.
POINT ACCESS:
101. Tht:** \.yc)':_'(:Iifopeh autcess' hat-rs beer": dc-fi11et1 Lulder
" 2 ¢_ Secf;1'(3:n ,'2__L['4'7x) whi(i?hvr.ea«ds as under:--
VVV"e'Tq::i:pen access" means the non ' VdEsgrfi'z»§é.ir12:1:'c)ry provision for me use Qf'
1..rcé;v.qvs;?iei'issior'1 lines or c:iist.rL'i0u£:ion. sysiern or asséciatedkfacilities with such lines or system any iicrerzsee or conswrler or a per'e3c;r1 engaged in ger2erc1i.i.0r2 in C1(?(.'()I'dC'UI(l'(3 L1>1'.tI1 the regz.Liau'ons s;3ec.'§fz'eci E11; ihe App:'()pr1'.a.£e Commission "
150
distribution networks has been one of the major reasons for poor quality of supply. Electricity industry is capitaljintensive having long gestation period. Resources of pow-;5r"gene:rationp are unevenly dispersed across the country. is commodity that can be stored in the _§'E_Li'i;i_"l supply have to be continuously fbalancedgnl distributed and rapidly increasingidemand' requirements of the country need to be met.1}1..an gn"1a.nner.lV'Inadequacy of generation has cliaracte1izedAV_péiwler s-ectoraoperation in India. The Government gh-.i.;i§iEi«. initiated several reform izmeasure-sV--«e.tpo". ci'e_ate_ a -l favourable environment for addition ofgnew generaLi.ng- capacity in the country. The Act has put in place: 'as: highly liberal framework for generation. There isllrio requirement of licensing for generation. Captive been freed from all controls. For Hydro Cgveiieration also the permission is made simpler. realvochallenge of reforms in the power sector lies in f 'ef£iei_e_nt management of the distribution sector. % Condusive business environment in terms of adequate returns generated in the country, which could our requirements, in case of dire need, in pub1i'c_"intere'st,r»the Government should have the power: to 'i--nter5Ver1e" '.ti<Vj:e--.ove'r*VAa if AV situation, which is rightly deserfioed CIRCUMSTANCES". To that privéite. _1inr¢f~e.gt""s§viiou1E1 yield' V to public interest.
118. For the aforesaid" w'e.'1:;'éiss'.V--the following If """ " ' upheld.
2) it tlté'--Wf'it'Peti'tio'ris are dismissed.
53} No cos'tsv.v- -----
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