POWERGRID CORP.OF INDIA LTD. v. CEN.ELECT.REGUL.COMMN..
Discusses statutory interpretation, regulatory frameworks, tariff regulations, and the principle of proximate cause in insurance claims.
Court: Supreme Court of India
Citation: 2025 INSC 626
Decision Date: 05-05-2025
List of Laws
Electricity Act, 2003; Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014; Electricity Regulatory Commission Act, 1998; General Principles of Law
- Electricity Act, 2003: The judgment discusses Section 125, which provides for appeals to the Supreme Court against any decision or order of the Appellate Tribunal on a substantial question of law. The judgment also mentions Section 178, which empowers the CERC to make Tariff Regulations. Section 38(1) is referenced regarding the Central Transmission Utility. The Act's overall purpose is described as consolidating laws relating to electricity generation, transmission, distribution, trading, and use, promoting competition, protecting consumer interests, rationalizing tariffs, and establishing regulatory bodies.
- Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014: The judgment extensively discusses these regulations, particularly Regulation 2 regarding the scope and extent of application of the Tariff Regulations, including tariff determination through bidding and capital cost. Regulation 14(xviii) defines 'Operation and Maintenance Expenses' (O&M). Regulation 18 deals with additional capitalization for thermal power generating stations. Regulation 53, included in Chapter 4 (Inter-State Transmission), is analyzed in detail, focusing on additional capitalization, including Note 2 regarding expenditure on replacement of old assets. The court interprets Regulation 53(2)(iv) regarding additional works/services necessary for efficient project operation.
- Electricity Regulatory Commission Act, 1998: The judgment mentions that the Central Electricity Regulatory Commission is a statutory body established under the provisions of the erstwhile Electricity Regulatory Commission Act, 1998 (since repealed).
- General Principles of Law: The judgment discusses the principle of "proximate cause" in the context of insurance claims, referencing the case of *Zuari Industries Limited*. The court explains that the proximate cause is not necessarily the cause nearest in time or place, but the active and efficient cause that sets in motion a chain of events leading to the ultimate result. The judgment also touches upon the interpretation of contracts and policies, specifically self-insurance policies, and the allocation of risk.
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