IN THE APPELLATE TRIBUNAL FOR ELECTRICITY (Appellate Jurisdiction)

APPEAL Nos. 697 & 698 OF 2023 & IA Nos. 1839 & 1852 OF 2023 Dated : 26^th September, 2025 Present : Hon’ble Mr. Virender Bhat, Judicial Member Hon’ble Bhupinder Singh Bhalla, Technical Member (P&NG)

In the matter of:

APL No. 697 OF 2023 & IA No. 1839 OF 2023 .... Appellant(s)

Bharat Petroleum Corporation Ltd.

Versus Petroleum and Natural Gas Regulatory Board & Anr. .... Respondent(s)

Counsel on record for the Appellant(s) : Mr. Gopal Jain, Sr. Adv.

Rajat Navet Kushagra Pandit Shashi Kant for App. 1 Counsel on record for the Respondent(s) : Sonali Malhotra Sanskriti Bhardwaj Suyash Gaur Harshita Tomar Kartikey Joshi for Res. 1 Mr. Ramji Srinivasan, Sr. Adv.

K R Sasiprabhu Tushar Bhardwaj for Res. 2 APL No. 698 OF 2023 & IA No. 1852 OF 2023 In the matter of:

.... Appellant(s)

Hindustan Petroleum and Corporation Ltd.

Versus Petroleum and Natural Gas Regulatory Board & Anr. .... Respondent(s)

Counsel on record for the Appellant(s) : Mr. Sachin Puri, Sr. Adv.

Matrugupta Mishra Swagatika Sahoo Ritika Singhal Ishita Thakur Nipun Dave Sonakshi Akanksha V. Ingole for App. 1 Counsel on record for the Respondent(s) : Sonali Malhotra Sanskriti Bhardwaj Suyash Gaur Harshita Tomar Kartikey Joshi for Res. 1 Mr. Ramji Srinivasan, Sr. Adv.

K R Sasiprabhu Tushar Bhardwaj for Res. 2 ORDER PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER

1. In these two appeals, the Appellants - Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. respectively have impugned the letter dated 14^th July, 2023 issued by 1^st Respondent – Petroleum and Natural Gas Regulatory Board (hereinafter referred to as “the Board”) whereby the Board has declared the Aviation Turbine Fuel (ATF) pipeline of the Appellants from Mumbai Refinery to Mumbai International Airport along with associated storage facilities/connected infrastructure as a common/contract carrier under Section 20 of Petroleum and Natural Gas Regulatory Board Act read with Regulation 10 of the PNGRB (Guiding Principles for Declaring or Authorizing Petroleum and Petroleum Product Pipelines as Common Carrier or Contract Carrier ) Regulations, 2012.

2. The challenge of the Appellants to the said impugned letter of the Board is premised on the following grounds inter alia:-

(a) There has been violation of fundamental principle of law on the part of the Board while discharging its functions under Section 20 of the PNGRB Act;

(b) Section 20 of PNGRB Act does not envisage declaration of a captive pipeline without adequate capacity and/or infrastructure, to be converted into a common carrier pipeline;

(c) In order to implement the directions of the Board contained in the impugned letter, the Appellants would have to incur substantial investment since it requires converting the captive pipeline in common carrier pipeline; and (d) Neither the Appellants nor the subject pipeline fall under any of the circumstances mentioned in Regulation 3 of Common Carrier Regulations and, therefore, Regulation 10 of these Regulations is not applicable at all. Thus, the Board has not only acted in contravention of Section 20 of the PNGRB Act but also in contravention of the common carrier Regulations which renders the impugned letter legal and invalid.

3. When the appeals came up for hearing on 22^nd August, 2025 it was pointed out by Learned Senior Counsels appearing for the Appellants that vires of Section 20 (1) & (2) of PNGRB Act as well as Regulations 10 of PNGRB (Guiding Principles for declaring or authorizing petroleum and petroleum production pipelines as common carrier or contract carrier) Regulations, 2012 as well as Regulations 2(1)(i) of the PNGRB (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010 have been challenged before Hon’ble High Court by way of writ petitions (C) bearing No. 16173 of 2024, W.P. (C) No. 2815 of 2025, and W.P. (C) No. 4934 of 2025 and W.P. (C) No. 11489 of 2025. It was su