GUJARAT URJA VIIKAS NIGAM LIMITED versus SOLAR SEMICONDUCTOR POWER COMPANY (INDIA) PRIVATE LIMITED AND OTHERS

Citation: [2017] 14 S.C.R. 115 · Decided: 25-10-2017 · Supreme Court of India · Bench: KURIAN JOSEPH · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2017) 14 S.C.R.115 
GUJARAT URJA VII<AS NIGAM LIMITED 
v. 
SOLAR SEMICONDUCTOR POWER COMPANY (INDIA) 
PRIVATE LIMITED AND OTHERS 
(Civil Appeal No. 6399 of2016) 
OCTOBER 25, 2017 
[KURIAN JOSEPH AND R. BANUMATHI, JJ.) 
. Gujarat Electricity Regulatory Commission (Conduct of 
Business) Regulations, 2004: 
A 
B 
c 
Regulations 80 to 82 .. - Whether the State Electricity 
Regulatory Commission, in exercise of its inherent powers, could 
have extended the control period for the respondent Company -
Held: The Commission does not have the power to extend the control 
period in exercise of its inherent powers provided under Reg. 80 to 
82, to the advantage of one party and to disadvantage of the other -
D 
Electricity Act, 2003 - s. 181. 
Allowing the appeal, the Court 
HELD: 
Per Kurian Joseph, J.: 
1. An amendment to tariff by the Regulatory Commission 
is permitted under Section 62(4) read with Section 64(6) of the 
Electricity Act, 2003. Section 86(l)(a) clothes the Commission 
with the power to determine the tariff and under Section 86(1)(b), 
it is for the Commission to regulate the price at which electricity 
is to be procured from the generating companies. Section 86 (l)(e) 
deals with. promoting co-generation and generation of electricity 
from renewable sources of energy. Therefore, there cannot be 
any quarrel with regard to the power conferred on the Commission 
with regard to fixation of tariff for the electricity procured from 
E 
F 
the generating companies or amendment thereof in the given G 
circumstances. [Para 29] [145-C-D] 
2. Part X of the Act from Sections 76 to 109 deals with 
"Regulatory Commissions" providing for th.eir constitution, 
powers and functions. Section 92 read with Section 94 provides 
for the proceedings and power of the Commission while exercising H 
115 
116 
SUPREME COURT REPORTS 
[2017) 14 S.C.R. 
A its functions and powers. Under Section 92, the proceedings of 
the Commission are to be governed by what is specified in the 
appropriate Regulation with regard to the transaction of business 
at its meetings. It is that Regulation which is referred to under 
Section 181 (zl) "rules of procedure for transaction of business 
B under sub-section (1) of Section .92". Under Section 181(zp) other 
matters also can be specified. Section 2(62) defines "specified" 
as "specified by regulations made by the Appropriate Commission 
or the Authority, as the case may be, under this Act". [Para 30) 
1145-·E-F) 
3. Section 94 provides that the Appropriate Commission 
C shall be vested with certain powers as are vested in a civil court, 
only in six specified areas. Under Section 94(1)(g), the 
Commission has the powers of a civil court in respect of "any 
other matter which may be prescribed". Under Section 2(52) 
"prescribed means prescribed by rules made by the Appropriate 
D Government under this Act". [Para 31) [145-G-H) 
4. Regulations 80 to 82 of Gujarat Electricity Regulatory 
Commission (Conduct of Business) Regulations, 2004 are 
instances of such powers specified by the Commission. 
Regulation 80 has provided for the inherent power of the 
E Commission to the extent of making such orders as may be 
necessary for the ends of justice or to prevent the abuse of the 
process of the Commission. Such inherent powers are to be 
exercised notwithstanding only the restrictions on the 
Commission under the Conduct of Business Regulations, meaning 
thereby that there cannot be any restrictions in the Conduct of 
F Business Regulations on exercise of inherent powers by the 
Commission. But the specified inherent powers are not as 
pervasive a power as available to a court under Section 151 of 
the Code of Civil Procedure, 1908. [Para 32) [146-A-C) 
5. However, the Commission is enjoined with powers to 
G issue appropriate orders in the interest of justice and for 
preventing abuse of process of the Commission, to the extent 
not otherwise provided for under the Act or Rules. In other words, 
the inherent power of the Commission is available to it for 
exercise only in those areas where the Act or Rules are silent. 
H [Para 32) [146-D-E) 
_ GUJARAT URJA VIKAS NIGAM LTD. v. SOLAR 
117 
SEMICONDUCTOR POWER CO. (I) PVT. LTD. 
6. Under Regulation 81, the Commission is competent to A 
adopt a procedure which is at variance with any of the other 
provisions of the Regulations in case the Commission is of the 
__ view that such an exercise is warranted in view of the special 
circumstances and such special cir
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