Orissa Electricity
Regulatory Commn. Vs. Western Elect. Company of Orissa Ltd. & Ors [2009] INSC
6 (5 January 2009)
Judgment
CIVIL APPELLATE
JURISDICTION CIVIL APPEAL NO.946 OF 2007 Orissa Electricity Regulatory
Commission ...Appellant(s) Versus Western Electricity Company of Orissa Limited
and Ors. ..Respondent(s) With Civil Appeal No.2309 of 2007 O R D E R Civil
Appeal No.946 of 2007:
By an order dated
27th January, 2006, Orissa Electricity Regulatory Commission (for short `the
Regulatory Commission') directed issue of notice to the respondents under
proviso to Section 24(1) of the Electricity Act, 2003 (for short `the Act'),
requiring them to file representations against proposed suspension of their
licences. Simultaneously, the Regulatory Commission appointed three special
officers to over see working of the respondents. The appeals filed by the
respondents against that order were allowed by the Appellate Tribunal for
Electricity (for short `the Appellate Tribunal') vide its order dated 13th
December, 2006. The Appellate Tribunal set aside the order impugned in the
appeals but observed that if the Regulatory Commission proposes to continue or
initiate fresh action under Section 24 of the Act, then it shall do so strictly
in accordance with the relevant statutory provisions and follow the procedure
prescribed therein.
...2/- -2- We have
heard the learned counsel for the parties and perused the record.
In our view, in the
facts and circumstances of the case, the Regulatory Commission was justified in
issuing notice to the respondents calling upon them to file representations
against proposed suspension of their licences, but there was no warrant for
appointment of special officers to over see their work. Therefore, the
Appellate Tribunal had rightly annulled the appointment of the special
officers.
However, it could not
have set aside the order of the Regulatory Commission in its entirety without
properly appreciating that only show cause notice had been issued to the
respondents and final order was yet to be passed by the Regulatory Commission.
Accordingly, the
appeal is allowed in-part. The impugned order of the Appellate Tribunal is
quashed so far as it annuls the show cause notice issued by the Regulatory
Commission under Section 24(1) of the Act. Now, it would be open to the
respondents to file their representations/ objections before the Regulatory
Commission, which shall proceed to decide the matter in accordance with law
without being influenced by the observations made in the order impugned in
these appeals.
Needless to say that
we have not gone to the question as to whether while issuing notice under
Section 24(1) of the Act proposing suspension of the licence, the Regulatory
Commission could pass an order for appointment of special officer and this
question is left to be decided in appropriate case.
...3/- -3- Civil
Appeal No.2309 of 2007:
In view of the order
passed in Civil Appeal No.946 of 2007, it is not necessary to pass any further
order in this appeal, but we clarify that any observation made against the
appellants in the impugned order shall not prejudice their cause before the
Regulatory Commission.
......................J.
[B.N. AGRAWAL]
......................J.
[G.S. SINGHVI]
New
Delhi,
January
05, 2009.
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