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It is necessary first to examine the periphery of the
statutory fields within which the Board and the State
Government has to function. Admittedly both are statutory
functionaries under the Central Act. They have to perform
their obligations within the limits they have been
entrusted with. Section 78 A empowers the State Government
to issue directions to the Board on question of policy, on
the other hand the Board has to perform its statutory
obligations under the said Act and with reference to the
fixation of tariff it has to act in term of what is
contained in Sections 49 and 50. But this field of policy
direction is not unlimited. There cannot be any policy
direction which pushes the Board to perform its obligations
beyond the limits of the said two sections. Any policy
direction, which in its due performance keep the Board
within its permissible statutory limitations would be
binding on the Board. So, both State and the Board have to
maintain its cordiality and co- ordination in terms of the
statutory sanctions. If any policy direction pushes the
Board in its compliance beyond statutory limitations, it
cannot be a direction within the meaning of Section 78 A.
It is significant that opening words of Section 78 A is,
in the discharge of its functions, the Board shall be
guided by such directions. So, the direction of the State
is for the guidance to the Board, in the discharge of its
functions. Thus this direction has also limitation to give
such direction which will subserve in performing its
statutory obligation. We would be returning later to test,
if direction to charge tariff at the rate of Rs. 50 per
H.P. per annum would have been followed by the Board,
whether it would have travelled beyond Section 59.