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2007 Supreme(SC) 1216

Supreme Court Of India
Chattisgarh Vidyut Mandal Abhiyanta Sangh - Appellant
Versus
Chattisgarh State Electricity Regulatory Commission - Respondent
Decided On : 09/19/2007

The Tribunal must consider and address each ground of appeal and record its reasons on each ground while disposing of the appeal.

Headnote:

Electricity Act, 2003 - License Grant - Section 14, 43, 41, 86(4), National Electricity Policy - [Electricity Act, 2003 - Section 14, 43, 41, 86(4), National Electricity Policy]

Fact of the Case:

The appeals were filed against the common judgment and order of the Tribunal dated 11.5.2006 passed under Section 111 of the Electricity Act, 2003. The appellants challenged the order passed by the Chhattisgarh State Electricity Regulatory Commission granting license to M/s Jindal Steel and Power Limited.

Finding of the Court:

The Court found that the Tribunal did not address the grounds raised by the appellants and directed the matter to be remitted to the Tribunal for fresh decision after considering all the grounds raised in the respective appeals.

Issues: The issues included the legality of the grant of license to M/s Jindal Steel and Power Limited, the applicability of Section 10(2) of the Electricity Act, 2003, and the treatment of the period during which power supply was without legal authority.

Ratio Decidendi: The Tribunal must examine the entire grounds of appeal and record its reasons on each ground while disposing of the appeal.

Final Decision: The appeals were allowed, the order dated 11.5.2006 was set aside, and the appeals were restored to the file of the Tribunal for fresh consideration. The Court did not express any opinion on the merit of the case.

JUDGMENT

H.K.SEMA,J

1.Civil Appeal No.3996 of 2006 is filed by Chhattisgarh Vidyut Mandal Abhiyanta Sangh. Civil Appeal No.4268 of 2006 is filed by Chhattisgarh State Electricity Board and Civil Appeal No.4529 of 2006 is filed by M/s Jindal Steel and Power Limited.

2.All these appeals are directed against the common judgment and order of the Tribunal dated 11.5.2006 passed in Appeal Nos. 179 of 2005, 188 of 2005, 16 of 2006 and 27 of 2006 preferred under Section 111 of the Electricity Act, 2003 (in short the Act). In the aforesaid appeals, the appellants have challenged the order dated 29.11.2005 passed by the Chhattisgarh State Electricity Regulatory Commission (in short the Commission)

3.We have heard Mr. Ravi Shankar Prasad, learned senior counsel, appearing on behalf of Chhattisgarh State Electricity Board - appellant in C.A.No.4268 of 2006; Mr. Shanti Bhushan, learned senior counsel, appearing on behalf of M/s Jindal Steel and Power Limited appellant in C.A.No.4529 of 2006 and Mr. Kavin Gulati, learned counsel appearing on behalf of Chhattisgarh Vidyut Mandal Abhiyanta Sangh appellant in C.A.No. 3996 of 2006.

4.Counsel for the appellant in C.A.No.3996 of 2006 has adopted the arguments of Mr. Ravi Shankar Prasad, learned senior counsel, appearing for the appellant in C.A.No.4268 of 2006.

5.In C.A.No.4268 of 2006, the appellant has assailed the order dated 29.11.2005 passed by the Commission, granting license in favour of respondent No.2 herein and the appellant in C.A.No.4529 of 2006.

6. Mr. Ravi Shankar Prasad, learned senior counsel appearing for the appellant, would contend that the impugned order of the Commission granting license to respondent No.2 - M/s Jindal Steel and Power Limited, is contrary to the provisions of Section 14 particularly proviso 6 of the Section. He would also contend that the grant of license is contrary to Section 43, the National Electricity Policy framed under Section 3 particularly 5.4.7. which according to the counsel is statutory in character and sub-rule 2 of Rule 3 of the Code of Conduct Rules, 2005 and explanation thereof. He would also contend that the grant of license in favour of respondent No.2 would also offend the provisions of Section 41 proviso 3 and Section 86(4) of the Act. In this connection, counsel has taken us to the grounds taken in the memo of appeal filed by the appellant. He has also taken us to the entire impugned judgment rendered by the Tribunal. The Tribunal has not at all dealt with the grounds urged by the appellant in the judgment. The Tribunal, however, rejected the grounds in paragraph 38 as under:

"Taking up the fourth point, Concedingly after coming into force of The Electricity Act 2003 the Jindal Power has submitted an application for grant of distribution license under Section 12 of the Act. Section 14 of the Act provides for the grant of license. Section 15 of the Act prescribes procedure for grant of license. Though the Electricity Board has raised an objection, it is a clear after thought presumably because of change or shifting of personalities in power, and such shifting stand had been adopted. The objections raised by Electricity Board are devoid of merits. The Regulatory Commission has considered the request of Jindal Power and directed issue of distribution license. We do not find any illegality or error in the grant of license as Jindal Power do possess all the requirements for the grant."

7. M/s Jindal Steel and Power Limited - appellant in C.A.No.4529 of 2006, was aggrieved by the order of the Commission recorded in paragraph 22 of the Order. Paragraph 22 of the Order is in the following terms:-

"The last issue for discussion is the treatment of the period from 1.4.04 till the date of the grant of distribution licence, during which supply of power by the applicant has been without legal authority. As already discussed in para 11 to 13 ante, the applicant did not have the necessary legal authority either under the








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