justice mehta - The Legal Chamber

The Supreme Court ruled that Regulatory Assets, while a valid regulatory tool, must be created only in exceptional circumstances and liquidated in a time-bound manner. It upheld the legal framework under the Electricity Act, 2003, and directed strict adherence to the newly inserted Rule 23 of the Electricity Rules, which mandates a maximum 3% gap in revenue and a 7-year liquidation period for existing assets. The judgment emphasizes the duty of Regulatory Commissions to ensure cost-reflective tariffs and affirms APTEL's power under Section 121 to issue directions against regulatory failure. Facts Of The Case: The case originated from petitions and appeals filed by three private power distribution companies (Discoms) in Delhi—BSES Rajdhani, BSES Yamuna, and Tata Power Delhi—agains...

The Supreme Court held that the High Court erred in dismissing the appeal solely on the ground of delay, particularly when the appellant was incarcerated. On merits, the Court acquitted the accused due to fatal procedural lapses: non-compliance with mandatory sampling guidelines under Standing Order No. 1 of 1989 and Section 52A of the NDPS Act, which rendered the seizure and FSL report unreliable. The trial court also erred in clubbing separate recoveries to constitute commercial quantity without evidence of conspiracy under Section 29. Facts Of The Case: On July 16, 2018, based on source information, police apprehended the appellant, Nadeem Ahamed, and a co-accused, Amit Dutta, near Laxmi Store in Kolkata. A search, conducted in the presence of a Gazetted Officer, led to the recovery o...

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Who Pays for Unpaid Power Bills? Supreme Court Explains ‘Regulatory Asset’ Mess and Orders a Fix

Technicality or Right? Supreme Court Acquits Man, Rules Mandatory NDPS Procedures Were Ignored