Supreme Court to Decide If 'Regulate' U/S 79(1) of Electricity Act Includes Control Over Electricity Trade

The Supreme Court, while hearing PTC India Limited's appeal against the Delhi High Court’s refusal to reject MB Power’s suit, issued an interim order restraining the encashment of a ₹15 crore Bank Guarantee and directed CERC to withhold its final order.

The key issue concerns the interpretation of “regulate” under Section 79(1) of the Electricity Act, 2003, whether it only refers to the power to make rules and regulations or also includes regulating electricity trade.

The dispute arose from the termination of a Power Purchase Agreement (PPA) between the parties and the return of a Bank Guarantee. The High Court previously held the suit maintainable. 

The Supreme Court's final verdict is pending.