Electricity Tariff Dispute: Supreme Court Upholds Tribunal’s Remand in Karnataka Power Case

The case of M/S Karnataka Power Transmission Corporation Ltd. v. M/S South Indian Sugar Mills Association & Ors. revolves around electricity tariff disputes and regulatory oversight. The Supreme Court dismissed the appeal, upholding the remand order issued by the Appellate Tribunal for Electricity (APTEL) and allowing the Karnataka Electricity Regulatory Commission (KERC) to reconsider the matter.

Background of the Case

The case involved disputes over electricity tariffs and regulatory jurisdiction between Karnataka Power Transmission Corporation Ltd. (KPTCL) and co-generators, including members of the South Indian Sugar Mills Association. The matter was brought before the Appellate Tribunal, which ruled in favor of remanding the case to the Karnataka Electricity Regulatory Commission (KERC) for fresh consideration.

Meanwhile, during the pendency of the case, the plant and machinery owned by the respondent sugar mills were sold in auction, rendering one of the appeals infructuous.

Key Arguments by the Petitioner (KPTCL)

• KPTCL contended that the Tribunal’s order suffered from legal infirmities and should be overturned.
• The corporation objected to the maintainability of cross-objections filed by the respondents.
• It argued that the matter should not have been remanded to KERC and should have been decided conclusively at the Tribunal level.

Key Arguments by the Respondents (South Indian Sugar Mills Association & Others)

• The respondents supported the Tribunal’s decision to remand the case to KERC.
• They emphasized that co-generators were the primary stakeholders in the dispute and should have the opportunity to present their case before the regulatory authority.
• They argued that the Tribunal’s ruling did not suffer from any legal errors and should be upheld.

Supreme Court Judgment

A bench comprising Justices Kurian Joseph and Rohinton Fali Nariman ruled in favor of maintaining the Appellate Tribunal’s remand order. The Court observed:

• Since the plant and machinery had already been sold, one of the appeals had become infructuous.
• Regarding the other appeal, the Supreme Court found no legal perversity in the Tribunal’s order remanding the case to KERC.
• The Court rejected KPTCL’s objections concerning the maintainability of cross-objections.
• The remand scope was limited to the co-generators, who were the only parties before the Tribunal.
• The appeal was dismissed, and the case was directed back to KERC for further proceedings.

Conclusion

This ruling highlights the importance of regulatory bodies in resolving tariff disputes and underscores the judiciary’s role in ensuring fair adjudication. By remanding the case, the Supreme Court upheld due process and reinforced the authority of regulatory commissions in overseeing electricity pricing and compliance.

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Download Judgment: MS Karnataka Power vs MS South Indian Sug Supreme Court of India Judgment Dated 21-01-2016.pdf