Impact on Tariff Under Section 63 of the Electricity Act 2003: Arbitral Tribunal’s Role

The case involves Haryana Vidyut Prasaran Nigam Ltd. (the appellant) challenging the decision regarding the impact on tariff under Section 63 of the Electricity Act, 2003. The issue was left for determination by the Arbitral Tribunal as per the order passed by the Appellate Tribunal for Electricity (APTEL). The appellant sought clarity on how the tariff would be impacted, and the question was whether the matter had been adequately addressed in the previous proceedings or whether further examination was required by the Arbitral Tribunal.

The respondent, Haryana Electricity Regulatory Commission, was also involved in the case, and the question of tariff adjustments and how the regulatory framework under Section 63 would apply to the specific dispute at hand was central to the case. The issue was complicated by the fact that the APTEL had deferred the matter regarding tariff impact, passing the responsibility to the Arbitral Tribunal for a detailed and independent decision.

Justice Kurian Joseph, delivering the judgment, stated that the Arbitral Tribunal would take an independent decision on the impact of the tariff, without being influenced by the observations or findings made in the impugned judgment. The Supreme Court emphasized that the Tribunal must make its decision uninfluenced by the earlier proceedings, allowing it to focus on the technical and legal aspects of the tariff issue as a preliminary matter.

The Court disposed of the appeal, directing that the Arbitral Tribunal decide on the impact on tariff as a preliminary issue. No costs were awarded, and the judgment made it clear that the decision of the Tribunal would stand independent of the previous judgment’s findings.

This judgment underscores the importance of ensuring that the Arbitral Tribunal makes decisions on key issues like tariff adjustments without undue influence, especially when those issues involve complex regulatory frameworks such as the Electricity Act, 2003.

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Download Judgment: Haryana Vidyut Prasa vs Haryana Electricity Supreme Court of India Judgment Dated 14-12-2016.pdf