Punjab's Suit Over Shanan Hydropower Project: Supreme Court Issues Summons to Himachal Pradesh - 2024-03-04

Supreme Court Issues Summons To Himachal Pradesh On Punjab's Suit Over Control Of Shanan Hydropower Project, Orders Status Quo

Briefly put, the Project in question is situated in Himachal Pradesh and has an annual turnover of about Rs 200 crores.

When the reorganization of the states of Punjab, Haryana and Himachal Pradesh took place in 1966, the Project was allocated to Punjab.

The state claimed that it has been in possession, control and management of the Project since its inception in 1932.

As a matter of interim relief, it prayed for temporary ad-interim injunction against Himachal Pradesh, in order that status quo may be maintained qua the Project.

Advocate General Gurminder Singh, Additional Advocate General Shadan Farasat and AoR Siddhant Sharma appeared for the State of Punjab

Case Title: The State of Punjab v. The State of Himachal Pradesh and Anr., ORGNL.SUIT No. 2/2024

In an original suit filed by the State of Punjab for restraining of interference with its possession & control of the Shanan Power House Hydel Project, the Supreme Court today issued summons to the Himachal Pradesh government and asked the parties to maintain status quo in terms of order dated 01.03.2024 passed by the Ministry of Power, Government of India.

The order was passed by a Bench of Justices Abhay S Oka and Ujjal Bhuyan which was hearing Punjab's suit under Article 131 of the Constitution, alleging that the Himachal Pradesh government is trying to dispossess it from the suit property (ie the Project) to take it over in a malafide manner.

Briefly put, the Project in question is situated in Himachal Pradesh and has an annual turnover of about Rs 200 crores. It was established in 1925 in the then princely state of Mandi, but leased to the Punjab government. When the reorganization of the states of Punjab, Haryana and Himachal Pradesh took place in 1966, the Project was allocated to Punjab. The 99-year lease in favor of the state expired on March 2, 2024.

In the backdrop of Himachal Pradesh's claims that it will take over the Project, the present suit came to be filed by Punjab pressing that the same was allocated to it by way of Notification dated May 1, 1967 issued by the Ministry of Irrigation and Power, Government of India. The state claimed that it has been in possession, control and management of the Project since its inception in 1932. As a matter of interim relief, it prayed for temporary ad-interim injunction against Himachal Pradesh, in order that status quo may be maintained qua the Project.

Advocate General Gurminder Singh, Additional Advocate General Shadan Farasat and AoR Siddhant Sharma appeared for the State of Punjab

Case Title: The State of Punjab v. The State of Himachal Pradesh and Anr., ORGNL.SUIT No. 2/2024