# In the matter of Reliance Infrastructure Limited Vs. State of Maharashtra and Ors. Civil Appeal No. 879 of 2019

> SC judgment dated 2019-01-21. Citation: TCN-2019-SC-00100. This case involves a civil appeal filed by Reliance Infrastructure Limited against the State of…

- **Court:** SC
- **Order date:** 21 Jan 2019
- **Citation:** TCN-2019-SC-00100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/reliance-infrastructure-limited-vs-state-of-maharashtra-and-ors-civil-appeal-no-67ac58ad

## Summary

### Background

This case involves a civil appeal filed by Reliance Infrastructure Limited against the State of Maharashtra and others, challenging the validity of a tariff regulation framed by the Maharashtra Electricity Regulatory Commission (MERC). The appellant argued that the regulation discriminated against its thermal power station at Dahanu by subjecting it to a more stringent Station Heat Rate (SHR) norm compared to other comparable units, allegedly breaching the National Tariff Policy 2006. The High Court of Judicature at Bombay ruled against the appellant, leading to the appeal before the Supreme Court.

## Facts

Reliance Infrastructure Limited filed an appeal against the State of Maharashtra challenging the tariff regulations set by the Maharashtra Electricity Regulatory Commission (MERC). The core issue was the Station Heat Rate (SHR) prescribed for Reliance's Dahanu Thermal Power Station (DTPS). Reliance argued that the SHR was more stringent compared to other similar power plants, leading to discrimination. The Electricity Act 2003 empowers regulatory commissions to frame regulations for tariff determination. MERC framed regulations for a five-year period, later extended. The National Tariff Policy under Section 3 of the Electricity Act 2003 aims to ensure electricity availability at reasonable rates and promote financial viability. MERC commissioned a report from the

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## Issues and analysis

### Issue 1: Whether the High Court was justified in dismissing the writ petition under Article 226 of the …

**Ratio:** The Supreme Court in PTC India Limited v Central Electricity Regulatory Commission

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**Reasoning:** The High Court erred in dismissing the writ petition based on the pendency of the appeal

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**Interpretation:** Article 226 of the Constitution provides the High Court with the power of

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**Application:** The Supreme Court held that the High Court was not justified in disparaging the

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## Parties

- **Judges:** Dr Dhananjaya Y…; HEMANT…
- **Appellants:** Reliance Infrastru…
- **Respondents:** State of Maharasht…

## Timeline

- **2003-06-10 — Electricity A…**: The Electricity Act 2003 came into force, empowering regulatory commissions to frame…
- **2006-01-06 — National Tariff Policy…**: The Union of India in the Ministry of Power notified the National Tariff Policy under…

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