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2026 Supreme(Online)(Kar) 28684
THE HIGH COURT OF KARNATAKA
K.S. Hemalekha, J
Distributed Solar Power Association – Appellant
Versus
Karnataka Electricity Regulatory Commission – Respondent
WRIT PETITION No.13316/2025|WRIT PETITION No.14646/2025|WRIT PETITION No.26022/2025|WRIT PETITION No.30238/2025
Important Points
Subject
Regulatory Law - Energy and Electricity
Act Referred
Headnote
(B) Principles of Natural Justice - Regulatory order - Requirement of public consultation - When a statutory authority issues a procedure that materially alters the substantive rights and obligations of stakeholders, failure to provide prior notice or consultation violates the legislative scheme and principles of natural justice. (Paras 14, 48)
Facts of the case:
Petitioners, entities involved in captive power generation and consumption, challenged a state regulatory order that introduced a procedure for verifying the captive status of generating plants. The order introduced a dynamic 'Unitary Qualifying Ratio' (UQR) formula based on total actual consumption, which petitioners argued was contrary to statutory rules and binding judicial precedent that established proportionality based on qualifying thresholds.
Findings of Court:
The Court observed that the regulatory commission lacked the power to substitute the statutory qualifying ratio with a dynamic formula based on total consumption. The methodology introduced fundamentally altered the verification mechanism established under the rules and the interpretation provided by the higher judiciary.
Issues: Whether the regulatory commission's order prescribing a proportionality test based on total actual consumption is contrary to statutory rules and established judicial precedent, and whether the process lacked necessary public consultation.
Ratio Decidendi: The proportionality principle, as interpreted by the Supreme Court, is inherently linked to the minimum qualifying captive consumption threshold rather than total actual generation. A regulatory authority cannot, through subordinate procedural orders, override specific qualifying benchmarks or introduce substantive criteria that deviate from the parent rules and authoritative judicial pronouncements without statutory support.
Result: Writ petitions are allowed; the impugned order is quashed, with direction for reconsideration after following due consultative process.
For the Appellants/Petitioners: C.K. Nandakumar, Mohammed Shameer, Dhyan Chinnappa, Lomesh Kiran N., Vishrov Mukharjee, Yashaswi Kant, Twinkle J. Chadwa, Ajay T.
For the Respondents: Pratibhanu Singh Kharola, Aravind Kamath, K.N. Phaneendra, Shivaprasad Shanthanagoudar, Shahabaaj Husain
| Table of Content |
|---|
| 1. procedures for verification of captive power plant status. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. challenge to kerc's authority and methodology regarding uqr. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 3. regulatory justification for usage of proportionality and anti-gaming tests. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27) |
| 4. statutory framework of electricity rules 2005 and precedent. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37) |
| 5. impermissibility of dynamic uqr violating established apex court standards. (Para 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49) |
IN W.P.NO.13316/2025
BETWEEN:
DISTRIBUTED SOLAR POWER ASSOCIATION
THROUGH ITS AUTHORIZED
REPRESENTATIVE FAIZA ZIA
REGISTERED OFFICE OF THE
SOCIETY IS AT A-57,
DDA SHEDS, OKHLA INDUSTRIAL,
PHASE-II, NEW DELHI-110020.
...PETITIONER
(BY SRI C.K. NANDAKUMAR, SENIOR COUNSEL FOR
SRI MOHAMMED SHAMEER, ADVOCATE)
AND:
1. KARNATAKA ELECTRICITY REGULATORY COMMISSION
REGISTERED OFFICE NO.16, C-1,
MILLERS TANK BUND RD,
BED AREA, VASANTH NAGAR,
BANGALORE-560052.
THROUGH SECRETARY.
2. CENTRAL ELECTRICITY AUTHORITY
REGISTERED OFFICE AT SEWA BHAWAN,
RAMA KRISHNA PURAM,
SECTOR-1, NEW DELHI-110066.
THROUGH CHAIRPERSON.
... RESPONDENTS
(BY SMT. PRATIBHANU SINGH KHAROLA, ADVOCATE FOR R-1;
SRI ARAVIND KAMATH, ASG FOR R-2;
SRI K.N. PHANEENDRA, SENIOR COUNSEL FOR
SRI SHIVAPRASAD SHANTHANAGOUDAR, ADVOCATE FOR IMPLEADING
APPLICANT ON I.A.NO.2/2025)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO ORDER OR DIRECTION
SETTING ASIDE / QUASH THE SUO-MOTU ORDER PASSED BY LD. KERC
DATED 28.03.2025 VIDE ANNEXURE-A WHEREBY LD. KERC HAS LAID
DOWN THE PROCEDURE FOR DATA COLLECTION, SCRUTINY AND
VERIFICATION OF INTRA-STATE CAPTIVE STATUS OF GENERATING
PLANTS AND CAPTIVE USERS, CHALLENGED HEREIN AND ETC.
IN W.P.NO.14646/2025
BETWEEN:
JSW ENERGY LIMITED
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, 1956
HAVING ITS REGISTERED OFFICE AT
JSW CENTRE, BANDRA KURLA COMPLEX,
BANDRA (EAST), MUMBAI-400051
REPRESENTED BY ITS
AUTHORIZED SIGNATORY
MR. KARTIKEYA MISRA,
Email: kartikeya.misra@jsw.in
...PETITIONER
(BY SRI DHYAN CHINNAPPA, SENIOR COUNSEL FOR
SRI LOMESH KIRAN N., ADVOCATE)
AND:
KARNATAKA ELECTRICITY REGULATORY COMMISSION
TANK BED AREA, 16C-1,
MILLERS TANK BUND RD,
KAVERAPPA LAYOUT, VASANTH NAGAR,
BENGALURU, KARNATAKA-560052
REPRESENTED THROUGH ITS SECRETARY
Email: kerc-ka@nic.in
...RESPONDENT
(BY SMT. PRATIBHANU SINGH KHAROLA, ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER
DATED 28.03.2025 PASSED BY THE LD. COMMISSION AS BEING,
PRODUCED AT ANNEXURE-A; QUASH THE KERC CAPTIVE VERIFICATION
PROCEDURE FOR VERIFICATION OF CAPTIVE STATUS OF CAPTIVE
GENERATING PLANT AND ITS CAPTIVE USER(S) LOCATED WITHIN
STATE OF KARNATAKA ALONG WITH ITS ANNEXURES AS SET OUT IN
THE IMPUGNED ORDER DATED 28.03.2025 PASSED BY THE LD.
COMMISSION.
IN W.P.NO.26022/2025
BETWEEN:
1. SEMBCORP GREEN INFRA PRIVATE LIMITED
(PREVIOUSLY KNOWN AS GREEN
INFRA WIND ENERGY LIMITED)
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 2013
THROUGH ITS AUTHORIZED REPRESENTATIVE
SHRIKANTH SHANTESHRAO KULKARNI,
ASSISTANT VICE PRESIDENT
REGISTERED OFFICE AT BUILDING 7A,
LEVEL 5, DLF CYBER CITY,
GURUGRAM-122002.
2. GREEN INFRA WIND POWER GENERATION LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 2013
THROUGH ITS AUTHORISED REPRESENTATIVE
SHRIKANTH SHANTESHRAO KULKARNI
ASSISTANT VICE PRESIDENT
BUILDING 7A, LEVEL 5, DLF CYBER CITY,
GURUGRAM-122 002, HARYANA.
3. GREEN INFRA CLEAN SOLAR ENERGY LIMITED,
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 2013
THROUGH ITS AUTHORIZED REPRESENTATIVE
SHRIKANTH SHANTESHRAO KULKARNI
ASSISTANT VICE PRESIDENT
REGISTERED OFFICE AT BUILDING 7A,
LEVEL 5, DLF CYBERCITY,
GURUGRAM, HARYANA-122002.
4. GREEN INFRA SOLAR POWER PROJECTS LIMITED
A COMPANY REGISTERED UNDER
THE COMPANIES ACT, 2013
THROUGH ITS AUTHORIZED REPRESENTATIVE
SHRIKANTH SHANTESHRAO KULKARNI
