Case Note & Summary
The petitioner, Maharashtra State Electricity Board (MSEB), filed a writ petition challenging the order of the Maharashtra State Electricity Regulatory Commission (respondent No.4) dated 3rd August 2004, which dismissed MSEB's application (Case No.57 of 2003). MSEB sought a declaration that respondent No.2 (Bhushan Steel & Strips Ltd.) was not entitled to sell power to respondent No.3 (Vipras Castings Limited) without a valid licence under Sections 12 to 15 of the Electricity Act, 2003. Respondent No.2 had set up a Captive Power generating Plant (CPP) and was supplying power to respondent No.3, which was a defaulter of MSEB. The Commission dismissed the application, holding that a captive generating plant is not required to obtain a licence to sell electricity to any person under Section 9 of the Act. The High Court admitted the petition on 15th March 2005 and heard it finally due to urgency. The court analyzed the provisions of the Electricity Act, 2003, particularly Section 9, which allows a captive generating plant to sell electricity to any person without a licence, and Sections 12 to 15, which apply to licensees. The court held that the Commission's order was correct and dismissed the petition, upholding the right of captive generating plants to sell electricity to third parties without a licence.
Headnote
A) Electricity Law - Captive Generating Plant - Licence Requirement - Sections 9, 12-15, 42 of the Electricity Act, 2003 - Whether a captive generating plant requires a licence to sell electricity to a third party - The court held that Section 9 of the Electricity Act, 2003 permits a captive generating plant to sell electricity to any person without a licence, and Sections 12 to 15 do not apply to such sales. The Regulatory Commission's order dismissing MSEB's application was upheld. (Paras 1-10)
B) Electricity Law - Regulatory Commission - Jurisdiction - Section 86 of the Electricity Act, 2003 - The State Regulatory Commission has the jurisdiction to adjudicate disputes between licensees and generating companies regarding sale of electricity. The Commission's order was within its powers. (Paras 1-10)
Issue of Consideration
Whether a captive generating plant requires a licence under Sections 12 to 15 of the Electricity Act, 2003 to sell electricity to a third party (another industrial consumer).
Final Decision
The High Court dismissed the writ petition, upholding the order of the Maharashtra State Electricity Regulatory Commission dated 3rd August 2004.
Law Points
- Captive generating plant can sell electricity to any person without licence under Section 9 of the Electricity Act
- 2003
- Sections 12 to 15 not applicable to captive generators
- Regulatory Commission's order upheld
Case Details
2005 LawText (BOM) (04) 218
Writ Petition No.882 of 2005
H.L. Gokhale, S.C. Dharmadhikari
Mr. G.R. Joshi with Mrs. Deepa Chavan i/by M/s. Little & Co. for petitioner; Mr. L.T. Satelkar, AGP for respondent No.1; Mr. P.N. Mody with A.N. Jakhadi for respondent No.2; Mr. O.J. Menezes for respondent No.3; Mr. Rajiv Chavan with Mr. D.A. Dubey for respondent No.5
Maharashtra State Electricity Board
State of Maharashtra, through Director of Industries; M/s. Bhushan Steel & Strips Ltd.; Vipras Castings Limited; Maharashtra State Electricity Regulatory Commission; Union of India
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition challenging order of State Regulatory Commission dismissing application seeking declaration that captive generating plant cannot sell power to third party without licence.
Remedy Sought
Petitioner sought declaration that respondent No.2 was not entitled to sell power to third party without licence and order to stop such sale.
Filing Reason
Petitioner filed application before Regulatory Commission which was dismissed; hence filed writ petition to challenge that order.
Previous Decisions
Regulatory Commission dismissed Case No.57 of 2003 on 3rd August 2004.
Issues
Whether a captive generating plant requires a licence under Sections 12 to 15 of the Electricity Act, 2003 to sell electricity to a third party.
Submissions/Arguments
Petitioner argued that respondent No.2 required a licence under Sections 12 to 15 of the Electricity Act, 2003 to sell power to respondent No.3.
Respondent No.2 and 3 argued that Section 9 of the Electricity Act, 2003 permits captive generating plants to sell electricity to any person without a licence.
Ratio Decidendi
A captive generating plant is not required to obtain a licence under Sections 12 to 15 of the Electricity Act, 2003 to sell electricity to any person, as Section 9 of the Act expressly permits such sale without a licence.
Judgment Excerpts
The petitioner herein is Maharashtra State Electricity Board (for short 'MSEB') constituted under the provisions of the Electricity Supply Act, 1948.
This Application sought a declaration that respondent No.2 was not entitled to sell power to third party in the absence of a valid licence as required under Sections 12 to 15 of the Electricity Act, 2003.
Procedural History
Petitioner filed Case No.57 of 2003 before Maharashtra State Electricity Regulatory Commission, which was dismissed on 3rd August 2004. Petitioner then filed Writ Petition No.882 of 2005 in Bombay High Court, which was admitted on 15th March 2005 and heard finally.
Acts & Sections
- Electricity Act, 2003: 2(7), 9, 12, 13, 14, 15, 42, 86
- Electricity Supply Act, 1948:
- Electricity Regulatory Commission Act, 1998:
