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2022 Supreme(Ori) 29

IN THE HIGH COURT OF ORISSA, CUTTACK
Dr. B.R.Sarangi, J.
Surendra Kumar Sahoo & Ors. - Appellants
Versus
State Of Odisha & Ors. - Respondents
W.P.(C) No. 30107 of 2021, W.P.(C) No. 31137 of 2021 and W.P.(C) No. 41959 of 2021
Decided On : 24-01-2022

Advocates Appeared:
Mr. P.K. Mohanty, Senior Advocate along with M/s. S.B. Das and P.K. Nayak, Advocates, for the Appellant; Mr. S.N. Nayak, Addl. Standing Counsel, for the Respondent.

The main legal principle established in the judgment is that the status of an entity as an 'authority' under Article 226 of the Constitution of India depends on the nature of the public duties it discharges, its regulation by the State, and the control exercised by the State over its functions.

Headnote:

State - Maintainability of Writ Petitions against Electricity Distribution Companies - Orissa Electricity Reforms Act, 1995 - Electricity Act, 2003 - Articles 12 and 226 of the Constitution of India

Fact of the Case:

The Court addressed the maintainability of writ petitions against electricity distribution companies in the State of Odisha. The distribution companies were formed under the Orissa Electricity Reforms Act, 1995 and were discharging public duties of supplying electricity to the people of the State. The companies were regulated by the State Government and the Orissa Electricity Regulatory Commission.

Finding of the Court:

The Court found that the distribution companies were discharging essential public duties and were under the control of the State through GRIDCO. Therefore, the companies were considered as 'authority' under Article 226 of the Constitution of India, making the writ petitions maintainable against them.

Issues: The main issue was the maintainability of the writ petitions against the electricity distribution companies, considering their status as 'authority' under Article 226 of the Constitution of India.

Ratio Decidendi: The Court applied the principles laid down in various judgments to determine the status of the distribution companies as 'authority' under Article 226. It considered the public duties discharged by the companies, their regulation by the State Government, and their control through GRIDCO to establish their status as 'authority' and the maintainability of the writ petitions.

Final Decision: The Court held that the writ petitions were maintainable against the distribution companies as they were considered as 'authority' under Article 226 of the Constitution of India.

ORDER

Dr. B.R. Sarangi, J. - A good number of writ petitions, having been filed against different electricity distribution companies, this Court called upon learned counsel appearing for the petitioners in those writ petitions to address this Court with regard to their maintainability. In response, learned counsel appearing for the petitioners in the above noted three writ petitions participated in the process of hearing and addressed the Court on the question of maintainability of the writ petitions. Therefore, these three writ petitions are taken up for consideration with regard to their maintainability before this Court against the distribution companies, irrespective of the factual matrix mentioned in each of the writ petitions.

2. Mr. P.K. Mohanty, learned Senior Advocate appearing along with Mr. S.B. Das, learned counsel for the petitioner in W.P.(C) No. 30107 of 2021 contended that as the opposite party-Tata Power Northern Odisha Distribution Limited (TPNODL) performs activity of supply of electricity, which is a duty of public nature, therefore, it is a 'State' and, as such, the writ is maintainable as against TPNODL. To substantiate his contention, he has relied upon the judgments of the apex Court in M/s. Zee Tele Films Ltd. and another v. Union of India and others, (2005) 4 SCC 649 : AIR 2005 SCC 2677; North Eastern Electricity Supply Company of Orissa Ltd v. State of Orissa and others, 2010 (supp.-1) OLR-919; and NESCO Power Engineers Association v. Managing Director, NESCO, WESCO & Director, SOUTHCO and others (W.P.(C) No. 9745 of 2010 disposed of on 18.04.2011).

3. Mr. Binaya Kumar Mohanty, learned counsel for the petitioner in W.P.(C) No. 31137 of 2021 supported the argument advanced by Mr. P.K. Mohanty, learned Senior Advocate appearing for the petitioner in W.P.(C) No. 30107 of 2021. He also relied on the judgment of this Court in National Bank for Agriculture and Rural Development (NABARD) and another v. Chita Ranjan Patnaik and others, 126 (2018) CLT633.

4. Mr. Satyabrata Mohanty, learned counsel appearing for the petitioner in W.P.(C) No. 41959 of 2021 also supported the contention raised by Mr. P.K. Mohanty, learned Senior Advocate appearing for the petitioner in W.P.(C) No. 30107 of 2021 and Mr. Binaya Kumar Mohanty, learned counsel for the petitioner in W.P.(C) No. 31137 of 2021. He unequivocally contended that since TPCODL is discharging the duties and responsibilities of supplying electricity to the people, is performing "public duty". Therefore, the writ petition is maintainable against TPCODL.

5. At the outset, it is of relevance to mention here that initially the supply of electricity, including transmission, maintenance and distribution, was undertaken by Orissa State Electricity Board, a corporation created under the statute and completely regulated by the State. Subsequently, with a view to restructuring of the electricity industry for rationalization of the generation, transmission, distribution and supply of electricity; and for avenues for participation of private sector entrepreneurs in the electricity industry in the State in an efficient, economic and competitive manner, including the constitution of Electricity Regulatory Commission for the State and for the matters connected therewith and incidental thereto, the State Government, in exercise of the powers conferred under Sub-section (5) of Section 23 read with Section 55 of the Orissa Electricity Reforms Act, 1955 (Orissa Act 2 of 1996) as amended by the Orissa Electricity Reforms (Amendment) Ordinance, 1998 (Orissa Ordinance No. 3 of 1998) and after consultation with the Grid Corporation of Orissa Limited, made the transfer scheme rules, for the purpose of providing and giving effect to preparation and implementation of a scheme for the transfer of distribution undertakings of the Grid Corporation of Orissa Limited to the distribution companies, called "Orissa Electricity Reform (Transfer of undertakings, Assets, Liabilities, Proceedings and

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