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2025 Supreme(SC) 1075

PAMIDIGHANTAM SRI NARASIMHA, JOYMALYA BAGCHI
State Of Himachal Pradesh – Appellant
Versus
JSW Hydro Energy Limited – Respondent


Advocates appeared:
For the Appellant(s) : Mr. Vaibhav Srivastava, A.A.G. Ms. Sugandha Anand, AOR
For the Respondent(s): Mr. P. Chidambaram, Sr. Adv. Dr. A.M. Singhvi, Sr. Adv. Mr. Mahesh Agarawal, Adv. Mr. Aman Anand, Adv. Mr. Shashwat Singh, Adv. Ms. Madhavi Agarwal, Adv. Mr. Chirag Nayak, Adv. Ms. Natasha Debroy, Adv. Mr. Shidharth Seem, Adv. Mr. E. C. Agrawala, AOR Mr. Anand K Ganesan, Adv. Mr. Amal Nair, Adv. Mr. Nitin Saluja, AOR Mrs. Shivani Verma, Adv. Ms. Preetika Dwivedi, AOR Mr. Abhisek Mohanty, Adv. Mr. Gurminder Singh, Sr. Adv. Mr. Nikunj Dayal, AOR Mr. Jatinder Singh Gill, Adv. Mr. Nikhil Nayyar, Sr. Adv. Mr. T. V. S. Raghavendra Sreyas, AOR Mr. Siddharth Vasudev, Adv. Mr. Brahma Prakash Soni, Adv. Mr. Kshitij Maheshwari, Adv.

JUDGMENT :

PAMIDIGHANTAM SRI NARASIMHA, J.

Table of Contents

I. Introduction

II. Facts

III. Impugned Order

IV. Submissions

V. Issue

VI. Analysis

VII. Regulation of Electricity Generation Under the ELECTRICITY ACT

VIII. Legal Effect of Note 3 of Regulation 55

i) Interpretation of the CERC Regulations, 2019

ii) CERC’s Order dated 17.03.2022

IX. Maintainability of the Writ Petition:

i) CERC as an Expert and Specialised Regulator, and Extent of Judicial Interference

ii) Grant of Relief by the High Court

X. Conclusion

I. Introduction:

1. Respondent no. 1, a generating company, installed and commissioned a 1045MW hydroelectric power project pursuant to a grant followed by an Implementation Agreement with the appellant-State of Himachal Pradesh. Under this Agreement, respondent no. 1 undertook to supply as consideration 18% of net generation free of cost1[The obligation to supply free power is 12% of net generation from 12.09.2011 to 12.09.2023, and 18% thereafter till 12.09.2051.] to the appellant-State. At the commencement of the obligation to supply 18% free power, responde

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