JUDGMENT :

ALOK ARADHE, J.

1. This appeal under Section 125 of the Electricity Act, 2003, (2003 Act) preferred by Delhi Electricity Regulatory Commission (Commission) challenges the correctness and legality of the judgment and order dated 10.02.2025 passed by the Appellate Tribunal for Electricity (APTEL). By the impugned judgment, APTEL has set aside the order dated 11.11.2019 passed by the Commission and issued the direction that entire capital cost of Rithala Combined Cycle Power Plant at Rithala, Delhi (the Plant) be permitted to be recovered through depreciation over a period of fifteen years notwithstanding the admitted fact that the Plant ceased to supply electricity to the consumers from and after March-2018.

2. The facts giving rise to this litigation though substantially not in dispute, are required to be set out, in order to appreciate the competing legal submissions advanced before us.

FACTUAL MATRIX

3. The respondent, Tata Power Delhi Distribution Limited (TPDDL) is a joint venture entity between the Tata Power Company Limited and Delhi Power Company Limited. On 11.06.2017, TPDDL moved a proposal for allotment of land at Rithala for setting up a temporary 108-megawatts Ga