High Court of Karnataka Dismisses BBMP's Challenge to KERC Order on Electricity Tariff — Regulatory Commission's Order Upheld as Reasonable and Within Powers. The court held that the KERC had followed due process and the order was not liable to be quashed under Articles 226 and 227 of the Constitution of India.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The petitioner, Bruhat Bangalore Mahanagara Palike (BBMP), filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the order dated 09.04.2015 passed by the Karnataka Electricity Regulatory Commission (KERC) in Complaint No.1/2015. The BBMP sought quashing of the order or alternatively remand of the matter to the Commission for fresh consideration after hearing the petitioner. The respondents included Bangalore Electricity Supply Company Limited and other electricity supply companies. The court, after hearing the advocates for both sides, dismissed the petition, holding that the KERC order was passed after due consideration and within its powers under the Electricity Act, 2003. The court found no violation of natural justice or jurisdictional error warranting interference under writ jurisdiction.

Headnote

A) Electricity Law - Tariff Fixation - Regulatory Commission's Powers - Section 62, 64 of Electricity Act, 2003 - The petitioner BBMP challenged the KERC order fixing electricity tariff for street lighting, alleging that it was passed without hearing the petitioner. The court held that the Commission had followed due process and the order was within its jurisdiction. (Paras 1-3)

B) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - The court examined whether the impugned order suffered from any error of law or violation of natural justice. It found that the petitioner had been given opportunity to participate in the proceedings and the order was reasoned. (Paras 1-3)

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Issue of Consideration

Whether the Karnataka Electricity Regulatory Commission's order dated 09.04.2015 in Complaint No.1/2015 is liable to be quashed on the grounds of violation of natural justice and lack of jurisdiction.

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Final Decision

The writ petition is dismissed. The order of KERC dated 09.04.2015 is upheld.

Law Points

  • Electricity tariff fixation
  • Regulatory commission's powers
  • Natural justice
  • Writ jurisdiction under Articles 226 and 227 of Constitution of India
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Case Details

2017 LawText (KAR) (09) 17

WP No.47730/2016 (GM - KEB)

2017-09-05

Dr. Vineet Kothari

B.S.Gautham, Vikram U., M.Nikhilesh Rao, Prashant T.Pandit, Sridhar Prabhu

Bruhat Bangalore Mahanagara Palike

Bangalore Electricity Supply Company Limited and Ors.

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Nature of Litigation

Writ petition under Articles 226 and 227 of Constitution of India challenging order of Karnataka Electricity Regulatory Commission.

Remedy Sought

Quashing of order dated 09.04.2015 in Complaint No.1/2015 or remand to KERC for fresh hearing.

Filing Reason

Petitioner aggrieved by KERC order fixing electricity tariff for street lighting without hearing the petitioner.

Previous Decisions

KERC passed order dated 09.04.2015 in Complaint No.1/2015.

Issues

Whether the KERC order was passed in violation of natural justice? Whether the KERC had jurisdiction to pass the impugned order?

Submissions/Arguments

Petitioner argued that the order was passed without giving an opportunity of hearing to BBMP. Respondents argued that the order was passed after due process and within the Commission's powers.

Ratio Decidendi

The KERC order was passed after following due process and within its statutory powers under the Electricity Act, 2003. No violation of natural justice or jurisdictional error found. Writ court cannot interfere with a reasoned order of a regulatory commission in the absence of any illegality.

Judgment Excerpts

The petitioner – BBMP has filed this petition aggrieved by the order passed by the Karnataka Electricity Regulatory Commission, Bengaluru...

Procedural History

The petitioner filed Complaint No.1/2015 before KERC which was disposed of by order dated 09.04.2015. Aggrieved, BBMP filed WP No.47730/2016 before the High Court of Karnataka.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Electricity Act, 2003: Sections 62, 64
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