SANJIV KHANNA, M. M. SUNDRESH
Dakshin Gujarat Vij Company Limited – Appellant
Versus
Gayatri Shakti Paper And Board Limited And Another, Etc. – Respondent
| Table of Content |
|---|
| 1. interpretation of the electricity act. (Para 1 , 2) |
| 2. criteria for establishing cgps. (Para 3 , 7) |
| 3. definition and ownership criteria of cgps (Para 4 , 5 , 6) |
| 4. rights and obligations under section 9 of the act (Para 8 , 9 , 10) |
| 5. understanding of captive generating plant's operational rights (Para 11 , 12 , 13) |
| 6. proportionality requirement for 'association of persons' (Para 21 , 30) |
| 7. significance of ownership and consumption requirements. (Para 22) |
| 8. interpretation of spvs and compliance with association of persons (Para 49 , 50 , 65) |
| 9. spv as an association of persons. (Para 66) |
JUDGMENT :
(Sanjiv Khanna, J.)
This judgment interprets relevant provisions of the ELECTRICITY ACT , 20031[For short, “Act”] and Rule 3 of the ELECTRICITY RULES , 20052[For short, “Rules”], for being classified as a Captive Generating Plant3[For short, “CGP”] and a captive user.
2. We will be elucidating the legal position as per the statute, our intent being to first lay down the principles of law and then apply the principles to the facts and circumstances of each case.
3. To decide th
Captive generating plants must ensure 26% ownership and 51% consumption by captive users, interpreted not only to include individuals but also legal entities as associations, ensuring compliance with....
The main legal point established in the judgment is the fulfillment of the conditions for a power plant to qualify as a 'Captive Generating Plant' as per the provisions of the Electricity Act, 2003 a....
State regulatory bodies cannot impose procedural verification requirements for captive power status that deviate from statutory thresholds and proportionality principles established by judicial prece....
Regulations mandating captive power plants to purchase renewable energy are lawful under the Electricity Act, promoting environmental sustainability without violating constitutional rights.
Captive consumers / captive users are not liable to pay additional surcharge under Section 42(4) of Electricity Act, 2003 – Consumers defined under Section 2(15) of Electricity Act, 2003 and captive ....
The regulation defining the threshold for captive generating plants was upheld as intra vires; notifications issued without adherence to natural justice were annulled.
The Central Government lacks the legislative competence to frame rules regarding open access in electricity, which is exclusively regulated by the State Commission under the Electricity Act.
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