IN THE SUPREME COURT OF INDIA

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.