Supreme Court Closes Petition on Dabhol Power Project Inquiry Due to Long Delay. Accountability of State Examined but No Further Inquiry Ordered.

  • 8
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Center of Indian Trade Unions, challenged the execution of Power Project Agreements (PPA) by the Maharashtra State Electricity Board (MSEB) in favor of Dabhol Power Corporation (DPC) before the Bombay High Court. The High Court dismissed the writ petition, finding the action questionable but lacking evidence of corruption. The petitioner then filed a Special Leave Petition in the Supreme Court, which issued notice limited to the accountability of the State of Maharashtra for its inconsistent stand. While the petition was pending, the State appointed the Godbole Committee, which reported serious illegalities and failure of governance. Subsequently, a judicial commission headed by Justice S.P. Kurdukar was appointed but its proceedings were stayed by a suit filed by the Union of India, which was dismissed in 2014. The commission did not resume, and in 2018, the Supreme Court directed the State to decide on continuing the inquiry. The State filed an affidavit stating that due to the long efflux of time, continuing the inquiry was no longer useful. The Supreme Court, considering the more than 25-year delay, the non-availability of the foreign corporation and senior officials, and the opinion of three members of the Godbole Committee that an inquiry would serve no purpose, closed the petition. The Court held that no useful purpose would be served by continuing the judicial commission of inquiry.

Headnote

A) Constitutional Law - Accountability of State - Inconsistent Stand - The State of Maharashtra took inconsistent stands regarding the Dabhol Power Project, leading to the Supreme Court issuing notice on the issue of accountability. (Paras 3-4)

B) Commission of Inquiry - Judicial Commission - Utility After Delay - The Supreme Court held that continuing the judicial commission of inquiry after more than 25 years would serve no useful purpose due to the non-availability of foreign corporations, retired officials, and the long efflux of time. (Paras 15-16)

C) Public Interest - Failure of Governance - Godbole Committee Report - The Godbole Committee found serious illegalities and failure of governance at both administrative and political levels, but the Court declined to order further inquiry due to delay. (Paras 6, 12-13)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the judicial commission of inquiry into the Dabhol Power Project should continue despite the long lapse of time and non-availability of key parties.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court closed the petition, holding that no useful purpose would be served in continuing the judicial commission of inquiry due to the long delay (over 25 years), non-availability of foreign corporations and senior officials, and the opinion of three members of the Godbole Committee that such an inquiry would serve no purpose.

Law Points

  • Commission of Inquiry Act
  • 1952
  • Judicial Commission of Inquiry
  • Failure of Governance
  • Accountability of State
  • Laches
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (4) 30

Special Leave Petition (C) No. 7734 of 1997

2019-04-11

Ranjan Gogoi, Deepak Gupta, Sanjiv Khanna

Dr. Rajeev Dhawan (amicus curiae)

Center of Indian Trade Unions

State of Maharashtra

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Public interest litigation challenging the execution of Power Project Agreements and seeking accountability of the State of Maharashtra.

Remedy Sought

The petitioner sought continuation of the judicial commission of inquiry into the Dabhol Power Project.

Filing Reason

Alleged corruption and irregularities in the award of contract for the Dabhol Power Project.

Previous Decisions

The Bombay High Court dismissed the writ petition, finding the action questionable but lacking evidence of corruption. The Supreme Court issued notice limited to the accountability of the State.

Issues

Whether the judicial commission of inquiry should continue despite the long lapse of time and non-availability of key parties.

Submissions/Arguments

Dr. Rajeev Dhawan, amicus curiae, argued that in view of serious allegations of corruption and failure of governance, the commission of inquiry should continue, possibly with a new retired Supreme Court judge. The State of Maharashtra filed an affidavit stating that due to long efflux of time, continuing the judicial commission of inquiry was no longer useful or feasible.

Ratio Decidendi

A judicial commission of inquiry may be declined if, due to long delay and non-availability of key parties, no useful purpose would be served by continuing the inquiry.

Judgment Excerpts

We are of the considered view that though normally in such a case a judicial inquiry should have been conducted but as far as the present case is concerned, more than a quarter of century has elapsed since the first PPA was executed. In view of the long delay and in view of the fact that due to nonavailability of many persons involved, no useful purpose would be served in continuing with the judicial commission of inquiry, we close the petition in the peculiar facts and circumstances of the case.

Procedural History

The petitioner challenged the PPA before the Bombay High Court, which dismissed the writ petition. The petitioner then filed a Special Leave Petition in the Supreme Court, which issued notice limited to the accountability of the State. While the petition was pending, the State appointed the Godbole Committee, which reported serious illegalities. A judicial commission headed by Justice Kurdukar was appointed but its proceedings were stayed by a suit filed by the Union of India, which was dismissed in 2014. The commission did not resume. In 2018, the Supreme Court directed the State to decide on continuing the inquiry, and the State filed an affidavit stating it was no longer useful. The Supreme Court then closed the petition.

Acts & Sections

  • Commission of Inquiry Act, 1952:
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Closes Petition on Dabhol Power Project Inquiry Due to Long Delay. Accountability of State Examined but No Further Inquiry Ordered.
Related Judgement
Supreme Court Supreme Court Dismisses Application Seeking Scrapping of Inquiry Commission in Vikas Dubey Encounter Case — Allegations of Bias Based on Newspaper Reports Rejected as Lacking Evidentiary Value