JAI BALAJI INDUSTRIES LIMITRED Vs. UNION OF INDIA
LAWS(CAL)-2012-12-13
HIGH COURT OF CALCUTTA
Decided on December 07,2012

Jai Balaji Industries Limitred Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) These writ applications are filed by the petitioner companies for declaration of clause (4) of Regulation 5 of the Central Electricity Regulatory Commission (terms and conditions of tariff) Regulations, 2009 and proviso to Clause(6) of Regulation 3 of the Central Regulatory Commission (procedure of making of application for determination of tariff, publication of the application and other related matters) Regulations, 2004, ultra vires the constitution of India and the Electricity Act, 2003. Provisional tariff order dated June 23, 2011 passed in the matter of Damodar Valley Corporation Vs. West Bengal State Electricity Distribution Company Ltd., Kolkata and Ors. in petition no.240 of 2009 for the period from 2009 to 2014 and differential power bills raised by the respondent no.3 for the period from May 2010, to May 2011 for enjoying the benefit of the impugned provisional tariff order are also under challenge in these writ applications.
(2.) Considering that the same points of law depending on identical facts and circumstances are involved in all these matters, these writ applications are taken up for analogous hearing.
(3.) The backdrop of these cases are as follows: Respondent no.3 was established on July 7, 1948 under the Damodar Valley Corporation Act, 1948. Section 18 of Damodar Valley Corporation Act, 1948 prohibited the respondent no.3 from supplying electrical energy below 33000 volts and it had no retail supply. Section 20 of the aforesaid Act empowered the respondent no.3 to determine its own tariff. The Electricity Act, 2003(hereinafter referred to as the said Act, 2003) came into force with effect from June 10, 2003. The preamble of the said Act, 2003, is quoted below: "An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.";


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