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PTC INDIA LTD. versus CENTRAL ELECTRICITY REGULATORY COMMISSION THR. ITS SECRETARY

Citation: [2009] 4 S.C.R. 134 · Decided: 06-03-2009 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Matter referred to larger bench

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Judgment (excerpt)

[2009] 4 S.C.R. 134 
A 
PTC INDIA LTD. 
B 
v. 
CENTRAL ELECTRICITY REGULATORY COMMISSION 
THR. ITS SECRETARY 
Civil Appeal No. 3902 of 2006 
MARCH 6, 2009 
[DR. ARIJIT PASAYAT, HARJIT SINGH BEDI AND 
ASOK KUMAR GANGULY,JJ.] 
Electricity Regulatory Commission Act, 1998 - s. 27 -
C Appellate court under - Jurisdiction - Scope of - Order of 
Central Electricity Regulatory Commission and Central 
Electricity Regulatory Commission (Fixation of Trading 
Margin) Regulations, 2006 - Challenge to - Order of appellate 
tribunal that it has no jurisdiction, relying on West Bengal 
D Electricity Regulatory Commission v. CESC Ltd. case - On 
appeal, held: Matter referred to larger Bench as regard 
applicability of West Bengal Electricity case to matters under 
the 2003 Act; and jurisdiction of tribunal to decide the validity 
of the Regulations - Electricity Act, 2003 - Central Electricity 
E Regulatory Commission (Fixation of Trading Margin) 
Regulations, 2006. 
West Bengal Electricity Regulatory Commission v. CESC 
Ltd. 2002 (8) SCC 715; Clariant International Ltd. and Anr. v. 
F Securities and Exchange Board of India 2004 (8) SCC 524; 
Cellular Operators Association of India and Ors. v. Union of 
India and Ors. 2003 (3) SCC 186; National Sewing Thread 
Co. Ltd. v. James Chadwick and Bros. Ltd. 1953 SCR 1028 -
referred to. 
G 
H 
Case Law Reference 
2004 (8) SCC 524 
ยท 
Referred to. 
2003 (3) SCC 186 
Referred to. 
134 
Para 7 
Para 8 
CENTRAL ELECTRICITY REGULATORY 
COMMISSION THR ITS SECRETARY 
1953 SCR 1028 
2002 (8) sec 715 
Referred to. 
Referred to. 
Para 9 
Para 10 
135 
CIVILAPPELLATE JURISDICTION: Civil Appeal No. 3902 
of 2006 
ยท 
A 
From the Judgement and Order dated 28.04.2006 of the 
8 
Appellate Tribunal for Electricity, New Delhi, inter alia, in Appeal 
No. 45 of 2006. 
WITH 
\_; 
Civil Appeal Nos. 4354/2006, 4355/2006, 2875/2007, C 
Civil Appeal D. 9870/2007, SLP (C) No.22080/2005, __ Civil 
Appeal Nos. 7437/2005, 7438/2005, 2073/2007, 1471/2007, -
2166/2007. 
Manish Singhvi, AAG, Harish N. Salve, Vikas Singh, P.S. 0 
Narasimha, Shanti Bhushan, Amit Kapur, Appprva Misra, Vibha 
Dutta Makhija, Shrivenketesh Singh, Meenakshri Grover, 
Mansoor Alo Shoket, Anupam Verma, A.G. Sharma, Poonam 
Verma, Shreshth Sharma, Sanjeev Kumar, Abhinash Menon, . 
Kumar Mihir, Vishal Gupta (Mis. Khaitan & Co.) Sridhar Potaraju, 
E 
Prakeik Dhar, C.K. Rai, Julius, D.K. Sinha, M.G. Ramachandran, 
K.V. Mohan, Anand K. Ganesm, S. Sheshdari, Ajit Bhasme, ยท 
Varun Thakur, Brajesh Kumar, Vivek Kishore, Ruchi Gaur Narule, 
Sangeeta Bharti Rakesh K. Sharma, G. Umapathy, Vibhu Tiwari, 
Rakesh K. Sharma, Nikhit Nayyar, T.V.S. Raghvendra Sreyas, 
Ambuj Agrawal, Pradeep Misra, Daleep Dhyani, Suraj Singh, 
F 
Mayur Kumar, K.R. Sasiprabhu, K.V. Mohan, H.K. Puri, R. 
Nedumaran, Suresh Chandra Tripathy, Sharmila Upadhayay, 
Ashish Kumar, Shibhashish Misra, for the appearing partie$. 
The Judgement of the Court was delivered by . 
G 
DR. ARIJIT PASAYAT, J. 
1. In these appeals and special leave petition, challenge 
in each case is.to the order passed by the AppellateTribunal 
for Electricity (in short the 'Tribunal'). Challenge before the 
H 
j 
136 
SUPREME COURT REPORTS 
[2009] 4 S.C.R. 
A 
Tribunal was to the order/decision dated 23.1.2006 of the 
Central Electricity Regulatory Commission (in short the 'CERC') 
and the Central Electricity Regulatory Commission (Fixation of 
Trading Margin) Regulations, 2006 (in short the 'Regulations') 
published in the Gazette of India on 27.1.2006. The Tribunal by 
B the impugned judgment held that it has no jurisdiction to deal 
with the matter. For this purpose the Tribunal placed reliance on 
a three-Judge Bench decision of this Court in West Bengal 
Electricity Regulatory Commission v. CESC Ltd. (2002 (8) 
sec 715). The conclusion in the said decision was to the effect 
c that the High Court sitting as an Appellate Court under Section 
27 of the Electricity Regulatory Commission Act, 1998 (in short 
'1998 Act') has no jurisdiction to go into the validity of the 
Regulations. It was ultimately held that there is weighty authority 
for the proposition that a Tribunal which is a creature of the statute 
0 
cannot question the vires of the provisions under which it 
functions. 
2. Questioning correctness of the said view the present 
appeals have been filed. It has been contended that the decision 
in West Bengal Electricity case (supra) has no application to 
E the present case. The Regulations have been framed

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