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/-
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/-
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.
[G.S. SINGHVI] New Delhi, January 05, 2009.