MUNICIPAL CORPORATION OF DELHIversusGAGAN NARANG & ORS. ETC.
- Citation
- 2025 INSC 2
- Decided
- 1 January 2025
- Disposal
- Appeal(s) allowed
Holding
A local authority like MCD, acting under its statutory duty to implement a waste‑to‑energy project, may invoke Section 63 of the Electricity Act, 2003 and the appropriate commission may adopt the tariff determined by a transparent bidding process.
Summary
The Municipal Corporation of Delhi (MCD) sought approval from the Delhi Electricity Regulatory Commission (DERC) to conduct a tariff‑based competitive bidding for a 28 MW waste‑to‑energy (WTE) project at Narela Bawana, invoking Section 63 of the Electricity Act, 2003. The Waste to Energy Research & Technology Council challenged MCD’s authority, arguing that only distribution licensees or generating companies could file an application under Section 63. The Appellate Tribunal for Electricity (APTEL) set aside DERC’s orders, holding that MCD, as a ‘local authority’, lacked jurisdiction. On appeal, this Court examined the literal meaning of Section 63, its harmony with Section 86(1)(b), and the statutory duties imposed on MCD by the Solid Waste Management Rules, 2016 and the Environment (Protection) Act, 1986. The Court held that the plain reading of Section 63 does not restrict its invocation to discoms or generators and that a local authority performing a statutory waste‑to‑energy function may invoke the provision. Accordingly, the Court quashed the APTEL judgment, affirmed DERC’s tariff approval, and allowed the appeals. The decision underscores a purposive, harmonious construction of the Electricity Act with environmental statutes.
Issues considered
- Whether a local authority such as the Municipal Corporation of Delhi can file an application under Section 63 of the Electricity Act, 2003 for adoption of tariff.
- Whether Section 63 is limited to distribution licensees or generating companies.
- Whether the provisions of the Electricity Act, particularly Sections 63, 86(1)(b), 174 and 175, are consistent with the Solid Waste Management Rules, 2016 and the Environment (Protection) Act, 1986.
- Whether the Delhi Electricity Regulatory Commission had jurisdiction to approve the tariff for the WTE project.
Legislation cited
- Electricity Act, 2003s. 174, s. 175, s. 2(41), s. 63, s. 86(1)(b), s. 86(1)(e)
- Environment (Protection) Act, 1986
- National Tariff Policy 2016s. Rule 6.4
- Solid Waste Management Rules, 2016s. Rule 15
Subjects
Judgment
[2025] 1 S.C.R. 239 : 2025 INSC 2
Municipal Corporation of Delhi
v.
Gagan Narang & Ors. Etc.
(Civil Appeal Nos. 7463-7464 of 2023)
02 January 2025
[B.R. Gavai* and K.V. Viswanathan, JJ.]
Issue for Consideration
Whether the application under Section 63 of the Electricity Act, 2003
could have been made by the Appellant-MCD, a “local authority”
within the meaning of Section 2(41) of the Act.
Headnotes†
Electricity Act, 2003 – ss.63, 86, 2(41), 174, 175 – Determination
of tariff by bidding process – Functions of the State
Commission – Solid Waste Management Rules, 2016 – r.15 –
Appellant, if could issue tariff based bid and Request for
Proposal (RfP) for setting up the Waste to Energy Project –
Petition filed by appellant before the Delhi Electricity Regulatory
Commission (DERC) for approval of the bidding process of
the Project – Waste to Energy Research & Technology Council
(WTERT) challenged the authority of the appellant to issue the
tariff-based bid and the RfP in setting up the Project – DERC
dismissed the petition of WTERT while allowed that of the
appellant and approved the bid tariff of Rs.7.38/KWh for the
project and directed the Distribution Licensee to negotiate the
terms of the Power Purchase Agreement with the appellant –
Orders of DERC set aside by APTEL holding that since the
appellant was neither a distribution licensee nor a generating
company, it had no jurisdiction to file an application u/s.63
for adoption of tariff – Challenge to:
Held: Impugned judgment quashed and set aside – Appellant was
establishing the Project in order to perform its statutory obligations –
DERC granted its approval to the tariff with certain conditions after
taking into consideration all the relevant factors – However, the same
was upset by APTEL on a hyper-technical ground – Under/s.63, the
* Author
240 [2025] 1 S.C.R.
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Appropriate Commission is entitled to adopt the tariff if such tariff
has been determined through a transparent process of bidding in
accordance with the guidelines issued by the Central Government –
Power of the Commission is notwithstanding anything contained
in s.62 – A plain reading of s.63 shows that it does not restrict
its invocation only by Discoms or generating companies – The
interpretation of APTEL is adding words in s.63 which the legislature
did not intend to – Further, APTEL could not have read s.63 in
isolation – s.63 will have to be read in harmony with s.86(1)(b) – The
legislature intended that the State Commission while exercising its
powers u/s.63 shall adopt the tariff when it has been determined
in the bidding process – However, while adopting the same it will
have to be satisfied that the same is done in a transparent manner
and as to whether the interests of the generators/Discoms are
balanced with the interests of the consumers – Reading s.63 in the
manner as interpreted by the APTEL, would impose unnecessary
restrictions on the powers and duties of the State Commission
u/s.86(1)(b) which are of a very wide amplitude – Furthermore,
there is no inconsistency between the provisions of s.63 and r.15,
SWM Rules – r.15 enacted under the Environment (Protection) Act,
1986, mandates the appellant to undertake WTE project – Insofar
as the WTE projects are concerned, the provisions under the Act
will have to be read in addition to the provisions u/r.15 and not in
derogation thereof – Also, s.86(1)(e) r/w r.6.4 of the Tariff Policy
provide for promoting cogeneration and generation of electricity from
renewable sources of energy by providing suitable measures for
connectivity with the grid and sale of electricity from such sources,
a percentage of the total consumption of electricity in the area of a
distribution licensee – APTEL also failed to take into consideration
that the WTE project in question was in the larger public interest
providing for disposal of the huge quantity of waste generated in the
city of Delhi – Orders of DERC affirmed – Environment (Protection)
Act, 1986. [Paras 28, 29, 35, 37, 41, 42, 48, 49, 50, 52, 54-56, 58]
Interpretation of Statutes – Electricity Act, 2003 – s.63 –
Interpretation of – Literal interpretation – Courts by judicial
interpretation not to add, alter, or delete the words when the
statute upon its plain reading is capable of giving a meaning
as intended by the legislature:
Held: When the statute read in a literal manner is capable of
giving meaning to the provision that the legislation intended to
[2025] 1 S.C.R. 241
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
and does not lead to any absurdity, it is not permissible by judicial
interpretation to add, alter, or delete any words to such a statute –
Upon a plain reading of the provisions of s.63, the meaning
gathered does not result in any absurdity thus, addition of words
in the statute by judicial interpretation is wholly impermissible.
[Paras 30, 36]
Electricity Act, 2003 – s.86 – Duty of the State Commission –
Discussed.
Case Law Cited
Pune Municipal Corporation v. Sus Road Baner Vikas Manch and
others [2024] 9 SCR 374 : (2024) 9 SCC 1; Energy Watchdog
v. Central Electricity Regulatory Commission and others [2017] 3
SCR 153 : (2017) 14 SCC 80; Punjab State Power Corporation
Limited and another v. Emta Coal Limited [2021] 11 SCR 772 :
(2022) 2 SCC 1; Jaipur Vidyut Vitran Nigam Limited and others v.
MB Power (Madhya Pradesh) Limited and others [2024] 1 SCR
909 : (2024) 8 SCC 513; Sanjay Ramdas Patil v. Sanjay and
others [2021] 11 SCR 640 : (2021) 10 SCC 306 – referred to.
List of Acts
Electricity Act, 2003; Solid Waste Management Rules, 2016;
National Tariff Policy 2016; Environment (Protection) Act, 1986.
List of Keywords
Municipal Corporation of Delhi (MCD); “local authority”; Competitive
bidding process; Determination of tariff; Bid tariff; Approval of
tariff; Appropriate Commission; State Commission; Solid Waste
Management; Statutory obligations; Notice Inviting Tender; Tariff
based bid; Request for Proposal (RfP); Financial Bids; Transparent
process of bidding; Waste to Energy Project at Narela Bawana,
Delhi; WTE project; Procurement of power; Delhi Electricity
Regulatory Commission (DERC); APTEL; Waste to Energy
Research & Technology Council; Tariff Policy; Power Purchase
Agreement (PPA); Distribution Companies; Distribution Licensee;
Discoms or generating companies/generators; Cogeneration,
generation of electricity; Sale of electricity; Electricity from
renewable sources of energy; Bidding Evaluation Committee; Plain
reading; Literal interpretation; Judicial interpretation; Harmonious
construction.
242 [2025] 1 S.C.R.
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Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 7463-7464
of 2023
From the Judgment and Order dated 31.08.2023 of the Appellate
Tribunal for Electricity at New Delhi in DFR Nos. 245 and 247 of 2023
Appearances for Parties
Ramji Srinivasan, Sr. Adv., Ms. Swapna Seshadri, Nikunj Dayal,
Utkarsh Singh, Ms. Sneha Singh Baghel, Ms. Namrata Saraogi,
Parth Bhalla, Advs. for the Appellant.
B.V. Patil, Sr. Adv., Aditya Ranjan, Krishna M. Singh, Anil C Nishani,
Mrs. Deepti Singh (for M/s. Krishna & Nishani Law Chambers),
Ms. Ishita Jain, Anand Kumar Shrivastava, Ms. Priya Goyal,
Ms. Eesha Sharma, Buddy Ranganathan, Dushyant Manocha,
Ms. Anannya Ghosh, Brian Henry Moses, Ms. Mrinalini Mishra,
Suresh Chandra Tripathy, Advs. for the Respondents.
Pukhrambam Ramesh Kumar, Ms. Molshree Bhatnaagar, Deepak
Thukar, Punyam Bhutani, Advs. for the Impleader.
Judgment / Order of the Supreme Court
Judgment
B.R. Gavai, J.
1. The present appeals filed under Section 125 of the Electricity Act,
20031 arise out of the Impugned common final judgment and order
of the Appellate Tribunal for Electricity at New Delhi2 dated 31st
August 2023 passed in DFR No. 245 of 2023 and DFR No. 247
of 2023 which were both filed by the Respondent No. 1 herein-
Mr. Gagan Narang. The APTEL disposed of the appeals and set
aside the orders of the Delhi Electricity Regulatory Commission3
dated 6th and 7th March 2023. Vide the order dated 6th March 2023
the DERC had dismissed the petition filed by Waste to Energy
1 ‘The Act’ hereinafter
2 ‘APTEL’ hereinafter
3 ‘DERC’ hereinafter
[2025] 1 S.C.R. 243
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
Research & Technology Council4 challenging the authority of the
Appellant herein - Municipal Corporation of Delhi, 5 to issue the
tariff-based bid and Request for Proposal6 for setting up the Waste
to Energy7 project at Narela Bawana, Delhi. Vide order of 7th March
2023, the DERC had approved the bid tariff of Rs. 7.38/KWh for the
project and had directed the Distribution Licensee to negotiate the
terms of the Power Purchase Agreement8 with the Appellant-MCD.
2. Shorn of details, the facts leading to the present appeals are:
2.1 The Appellant-MCD organized a meeting with the Distribution
Licensees in Delhi and other stakeholders on 14th May 2022. It
was agreed that a tariff-based bidding model may be adopted
and the details about the same, including the volume of waste,
total power generation, and other considerations for the proposed
project were decided. It was further decided that the sale of
power be distributed amongst the Distribution Licensees as
per their ‘Renewable Purchase Obligation’. The Appellant was
authorized to conduct the bidding process as per the regulations
and requirements of Section 63 of the Act for the proposed
WTE project. The same was put in writing and was detailed in
the Minutes of Meeting dated 30th May 2022.
2.2 The Appellant-MCD, issued the Notice Inviting Tender9 and
the RfP dated 15th July 2022 whereby the tariff-based bids
for procurement of power under WTE project for Solid WTE
Processing Facility with a minimum 28 MW capacity in Narela
Bawana, New Delhi, for 3000 (+/- 20%) TPD of MSW10 were
invited. The documents for the same were sent to the DERC
for its consideration.
2.3 The DERC, vide letter dated 24th August 2022 directed the
Appellant-MCD to file a petition for approval of PPA, RfP, etc.
The letter also contained the details of the petitions filed by
4 ‘WTERT’ hereinafter
5 ‘Appellant-MCD’ hereinafter
6 ‘RfP’ hereinafter
7 ‘WTE’ hereinafter
8 ‘PPA’ hereinafter
9 ‘NIT’ hereinafter
10 ‘Project’ hereinafter
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South Delhi Municipal Corporation and the East Delhi Waste
Processing Co. Ltd. seeking similar approvals, which were
granted by the DERC through separate orders. An evaluation
committee was also constituted for the evaluation of bids and
other related issues. The Appellant-MCD issued a notice that
the bidding process dated 15th July 2022 were closed and a
new NIT was issued on 21st October 2022 with identical terms
as the earlier NIT.
2.4 The WTERT filed a Petition No. 65 of 2022 before the DERC
inter alia challenging the authority of the Appellant-MCD for
issuing the tariff-based bid and the RfP in setting up the Project.
During the pendency of this petition, the bidding process
was undertaken, and on 14 th November 2022, bids were
received from M/s JITF Urban Infrastructure Ltd. and M/s JBM
Renewables Pvt. Ltd. A meeting of the Evaluation committee
was held, and the documents submitted by the bidders keeping
in mind the requirement of the RfP document were discussed,
and on recommendation of the committee, the bids of both the
bidders were declared to be technically qualified and their bids
were allowed to be opened. The Regional Centre for Urban &
Environmental Studies11 calculated the levelized tariff based on
the RfP and the same was communicated and calculated as:
Name of the Bidder Levelized Tariff
(Rs/KWh)
M/s JITF Urban Infrastructure Limited 7.380
M/s JBM Renewable Pvt. Limited 9.909
2.5 The Financial Bids were evaluated by the Evaluation Committee
and its recommendation report dated 26th November 2022 was
issued. It was stated in the report that in accordance with the
terms of the RfP, the “Lowest Bidder” for a project was to be
the qualified bidder and the lowest evaluated levelized tariff
shall be the selected bidder for the Project. M/s JITF Urban
Infrastructure Limited was selected to be the lowest bidder with
a levelized tariff bid of Rs. 7.380/KWh. It was further mentioned
that a meeting of the Evaluation Committee was held on 6th
11 ‘RCUES’ hereinafter
[2025] 1 S.C.R. 245
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
October 2022 for the consideration of the Financial Model for
price bid evaluation prepared by RCUES. The representative of
RCUES presented the financial model and after deliberation, the
committee reached a consensus on the key assumptions taken
and had arrived at a levelized tariff of Rs. 6.73/KWh. Since,
there existed a difference between the tariff according to the
financial model and the tariff by the lowest bidder, a justification/
calculation for arriving at the quoted bid was requested from
M/s JITF Urban Infrastructure Limited, and the same was
considered by the committee. It was further mentioned, that
after detailed deliberations, the committee was of the opinion
that the bids had been received through a competitive bidding
process and the lowest bid of Rs. 7.380/KWh was arrived at,
through a competitive and transparent bidding process. It was
further mentioned that the Appellant-MCD herein has no benefit
or loss accruing out of this as the power is to be procured by
the Distribution Companies in accordance with the approval of
tariff by DERC. The report was then forwarded to the DERC
as the final approval was to be given by it.
2.6 Pursuant to the same, the Appellant-MCD filed a Petition No. 72
of 2022 before the DERC for the approval of the bidding process
of the Project.
2.7 The DERC, vide order dated 6th March 2023, dismissed the
Petition No. 65 filed by WTERT and inter alia held that the
Appellant-MCD is mandated under the Solid Waste Management
Rules, 201612 to construct, operate, and maintain the solid waste
processing facilities. Vide order dated 7th March 2023, the DERC
in Petition No. 72 filed by the Appellant-MCD herein, approved
the bid tariff of Rs. 7.38/KWh for the project and directed the
Distribution Licensee to negotiate terms of the PPA with the
Appellant-MCD and place a signed copy of the PPA before the
DERC within three months.
2.8 Aggrieved, two separate appeals were filed by the Respondent
No. 1 herein bearing DFR Nos. 245 of 2023 and 247 of 2023
against the orders dated 7th March 2023 and 6th March 2023
respectively.
12 ‘SWM Rule 2016’ hereinafter
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2.9 The APTEL, vide the Impugned common final judgment and
order dated 31st August 2023 disposed of the appeals and set
aside both the orders dated 6th and 7th March 2023 passed by
the DERC on the ground that the DERC lacked jurisdiction to
entertain and adjudicate upon a petition filed by the Appellant-
MCD herein.
2.10 Aggrieved, the present appeals are filed under Section 125 of
the Electricity Act, 2003.
3. We have heard Mr. Ramji Srinivasan, learned Senior Counsel
appearing for the Appellant and Mr. Basava Prabhu Patil, learned
Senior Counsel appearing for the Respondent No.1, Mr. Krishna M.
Singh, Ms. Ishita Jain, Mr. Buddy Ranganathan, Mr. Suresh Chandra
Tripathi, learned counsel appearing for Respondent Nos. 2, 3, 4 &
5, and 9 respectively and Mr. Pukhrambam Ramesh Kumar, learned
counsel for the applicant.
4. Mr. Ramji Srinivasan, learned Senior Counsel appearing for the
Appellant submits that the APTEL has grossly erred in restricting
the applicability of Sections 63 and 86(1)(b) of the Act only to the
distribution licensee13 or generating company insofar as the filing of
application for adoption of tariff is concerned. He submits that the
provisions of Section 86(1)(b) of the Act would reveal that a wide
power is bestowed upon the State Commission to regulate electricity
purchase and procurement process of Discoms including the price
at which electricity shall be procured from the generating companies
or licensees or from other sources.
5. Learned Senior Counsel further submits that the Appellant-MCD,
which is a statutory body under the Delhi Municipal Corporation Act,
has been put under statutory obligation under Rule 15(v)(b) of the
SWM Rules 2016 to proceed for setting up of the WTE projects. It
is submitted that this statutory duty has also been recognized by
this Court in the case of Pune Municipal Corporation v. Sus Road
Baner Vikas Manch and others.14
6. The learned Senior Counsel further submits that Rule 6.4(1)(ii)
and (2) of the National Tariff Policy 2016 mandates Discoms to
13 ‘Discoms’ hereinafter
14 [2024] 9 SCR 374 : (2024) 9 SCC 1
[2025] 1 S.C.R. 247
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
procure 100% of the power produced from all WTE plants either
through Section 62 (normative tariff process) or through Section 63
(competitive based mechanism).
7. It is further submitted that Section 175 of the Act itself provides that
the provisions of the Act are in addition to and not in derogation of
any other law for the time being in force. It is, therefore, submitted
that the mandate for setting up the WTE project by MCD has to be
read in consonance with the provisions of the Environment (Protection)
Act, 1986 and the Rules framed thereunder.
8. It is submitted that for WTE projects, no guidelines have been framed
by the Central Government for conducting the bidding and accordingly
the DERC has exercised its powers to regulate under Section 86(1)(b)
of the Act to approve the bidding process and adopt the tariff. It is
submitted that this is in tune with the judgment of this Court in the case
of Energy Watchdog v. Central Electricity Regulatory Commission
and others,15 wherein this Court has held that in a situation when
there are no guidelines, then the general regulatory powers under
Section 79(1)(b) can be exercised by the Commission. It is, therefore,
submitted that by the same analogy the State Commission can exercise
such powers in view of Section 86(1)(b) of the Act.
9. The learned Senior Counsel submits that the APTEL has failed to take
into consideration the larger issue of public interest. It is submitted
that WTE project was necessary for processing the unprocessed
municipal solid waste which is increasing day by day.
10. It is further submitted that the DERC vide its order dated 6th March
2023 had held that the Appellant-MCD under Rule 15(v) of the
SWM Rules 2016 was performing its statutory functions to conduct
the bidding process for the Project and that there is no bar in the
National Tariff Policy that WTE project cannot be set up under Section
63 of the Act. It is submitted that on an earlier occasion also the
DERC has approved the bidding process with regard to Tehkhand
WTE at Okhla which is under operation and supplying electricity to
all Delhi Discoms.
11. Mr. Basava Prabhu Patil, learned Senior Counsel appearing for
the Respondent No.1, on the contrary, submits that the APTEL has
15 [2017] 3 SCR 153 : (2017) 14 SCC 80
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rightly held that the Appellant-MCD was not entitled to make an
application for adoption of tariff under Section 63 of the Act. It is
submitted that the APTEL rightly held that it is only the Discoms or
generating companies who are entitled to invoke the provisions of
Section 63 of the Act. The learned Senior Counsel submits that in
view of Rule 6.4(2) of the National Tariff Policy, 2016, it is exclusively
for the Ministry of Power to provide a mechanism for adoption of tariff
for WTE projects. It is, therefore, submitted that the DERC has no
jurisdiction to entertain the application filed by the present Appellant-
MCD. He, therefore, prays for the dismissal of the present appeals.
12. The limited question that falls for consideration in the present appeals
is that, whether the application under Section 63 of the Act could
have been made by the present Appellant-MCD which is a “local
authority” within the meaning of Section 2(41) of the Act.
13. For appreciating the rival controversy, it will be necessary to consider
the nature of the Project which the Appellant-MCD was implementing.
For the said purpose, it will be relevant to refer to clauses (q) and (v)
of Rule 15 of the SWM Rules 2016, which read thus:
“15. Duties and responsibilities of local authorities
and village panchayats of census towns and urban
agglomerations.—The local authorities and Panchayats
shall—
***
(q) transport segregated bio-degradable waste to the
processing facilities like compost plant, biomethanation
plant or any such facility. Preference shall be given for
on site processing of such waste;
***
(v) facilitate construction, operation and maintenance
of solid waste processing facilities and associated
infrastructure on their own or with private sector participation
or through any agency for optimum utilisation or various
components of solid waste adopting suitable technology
including the following technologies and adhering to the
guidelines issued by the Ministry of Urban Development
from time to time and standards prescribed by the Central
[2025] 1 S.C.R. 249
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
Pollution Control Board. Preference shall be given to
decentralised processing to minimise transportation cost
and environmental impacts such as—
(a) bio-methanation, microbial composting, vermi-
composting, anaerobic digestion or any other appropriate
processing for bio-stabilisation of biodegradable waste;
(b) waste to energy processes including refused derived
fuel for combustible fraction of waste or supply as feedstock
to solid waste based power plants or cement kilns;”
14. It could thus be seen that the SWM Rules 2016 require that, while
making provisions for solid waste disposal, the authorities shall give
a preference to decentralized processing to minimize transportation
cost and environmental impacts such as, waste to energy processes
including refused derived fuel for combustible fraction of waste or
supply as feedstock to solid waste based power plants or cement
kilns.
15. It is further to be noted that the “Tariff Policy” notified by the Ministry
of Power on 28th January 2016 is in compliance with the mandate
of Section 3 of the Act. It could further be seen that under the said
“Tariff Policy”, a provision has been made for renewable sources of
energy generation including Co-generation from renewable energy
sources. It will be relevant to refer to Rule 6.4 of the said “Tariff
Policy”, which reads thus:
“6.4 Renewable sources of energy generation including
Co-generation from renewable energy sources:
(1) Pursuant to provisions of section 86(1)(e) of the Act,
the Appropriate Commission shall fix a minimum
percentage of the total consumption of electricity in
the area of a distribution licensee for purchase of
energy from renewable energy sources, taking into
account availability of such resources and its impact
on retail tariffs. Cost of purchase of renewable energy
shall be taken into account while determining tariff by
SERCs. Long term growth trajectory of Renewable
Purchase Obligations (RPOs) will be prescribed by
the Ministry of Power in consultation with MNRE.
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Provided that cogeneration from sources other than
renewable sources shall not be excluded from the
applicability of RPOs.
(i) Within the percentage so made applicable,
to start with, the SERCs shall also reserve
a minimum percentage for purchase of solar
energy from the date of notification of this policy
which shall be such that it reaches 8% of total
consumption of energy, excluding Hydro Power,
by March 2022 or as notified by the Central
Government from time to time.
(ii) Distribution Licensee(s) shall compulsorily
procure 100% power produced from all the
Waste-to-Energy plants in the State, in the ratio
of their procurement of power from all sources
including their own, at the tariff determined by
the Appropriate Commission under Section 62
of the Act.
(iii) It is desirable that purchase of energy from
renewable sources of energy takes place more
or less in the same proportion in different States.
To achieve this objective in the current scenario
of large availability of such resources only in
certain parts of the country, an appropriate
mechanism such as Renewable Energy
Certificate (REC) would need to be promoted.
Through such a mechanism, the renewable
energy based generation companies can sell
the electricity to local distribution licensee at the
rates for conventional power and can recover
the balance cost by selling certificates to other
distribution companies and obligated entities
enabling the latter to meet their renewable power
purchase obligations. The REC mechanism
should also have a solar specific REC.
(iv) Appropriate Commission may also provide for a
suitable regulatory framework for encouraging
such other emerging renewable energy
[2025] 1 S.C.R. 251
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
technologies by prescribing separate technology
based REC multiplier (i.e. granting higher
or lower number of RECs to such emerging
technologies for the same level of generation).
Similarly, considering the change in prices of
renewable energy technologies with passage
of time, the Appropriate Commission may
prescribe vintage based REC multiplier (i.e.
granting higher or lower number of RECs for
the same level of generation based on year of
commissioning of plant).
(2) States shall endeavor to procure power from
renewable energy sources through competitive
bidding to keep the tariff low, except from the waste to
energy plants. Procurement of power by Distribution
Licensee from renewable energy sources from
projects above the notified capacity, shall be done
through competitive bidding process, from the date
to be notified by the Central Government.
16. It can thus be seen that clause (1) of Rule 6.4 provides that the
Appropriate Commission shall fix a minimum percentage of the
total consumption of electricity in the area of a distribution licensee
for purchase of energy from renewable energy sources, taking into
account availability of such resources and its impact on retail tariffs. It
further provides that the cost of purchase of renewable energy shall
be taken into account while determining tariff by SERCs and that
the long-term growth trajectory of Renewable Purchase Obligations
(RPOs) will be prescribed by the Ministry of Power in consultation
with Ministry of New and Renewable Energy (MNRE).
17. Certain exceptions have been made to the applicability of the said
clause. One of the exceptions is that, the Distribution Licensee(s)
shall compulsorily procure 100% of the power produced from all the
Waste-to-Energy plants in the State, in the ratio of their procurement
of power from all sources including their own, at the tariff determined
by the Appropriate Commission under Section 62 of the Act.
18. It is further to be noted that the following provision has been made
in SWM Rules 2016:
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“9. Duties of the Ministry of Power.- The Ministry of
Power through appropriate mechanisms shall,-
(a) decide tariff or charges for the power generated from
the waste to energy plants based on solid waste.
(b) compulsory purchase power generated from such waste
to energy plants by distribution company.”
19. It could thus be seen that under the SWM Rules 2016, a duty is cast
upon the Ministry of Power to decide tariff or charges for the power
generated from the waste to energy plants based on solid waste
and compulsory purchase of power generated from such waste to
energy plants by distribution company.
20. Thus, it is to be noted that the Project, for which bids were invited by
the Appellant-MCD, was proposed to be set up by the Appellant-MCD
in pursuance of its statutory obligations under the SWM Rule 2016.
21. A perusal of the record would reveal that the Appellant-MCD issued
NIT for the competitive tariff bidding process for setting up of the
Project for procurement of power by Discoms in the NCT of Delhi
as part of Discom’s Renewal Purchase Obligation.16 The said project
was on Design, Build, Finance, and Operate basis and was to be
transferred back to the Appellant-MCD after 25 years.
22. It is further to be noted that after the bid was conducted in consonance
with the decision taken in the meeting dated 14th May 2022, wherein
the Discoms authorized the Appellant-MCD to proceed with the same,
on 3rd August 2022, the bidding documents were sent to the DERC
for its consideration. Based on the same, the DERC vide letter dated
24th August 2022 directed the Appellant-MCD to file a Petition for
adoption of tariff. The DERC, further informed the Appellant-MCD
about similar petitions filed by East Delhi Processing Limited seeking
similar approvals.
23. After M/s JITF Urban Infrastructure Ltd. emerged as a L-1 bidder
at the levelized tariff of Rs.7.380/KWh, the Appellant-MCD filed a
Petition No. 72 of 2022 before the DERC for adoption of tariff and
approving the draft PPA. The DERC vide its order dated 7th March
2022 adopted the tariff of Rs.7.380/KWh and directed the Discoms
and the successful bidder to renegotiate the terms of the PPA.
16 “RPO” for short
[2025] 1 S.C.R. 253
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
24. Insofar as the petition of the WTERT is concerned, the DERC
specifically rejected the contention of the WTERT to the effect that
since the Appellant-MCD was not an authorized distribution licensee,
it cannot float the impugned tender. It was further sought to be
argued that the Bidding procurement under Section 63 of the Act
was impermissible in case of ‘waste to energy’ power.
25. The DERC relying on the provisions of Rule 15 of the SWM Rules
2016 specifically rejected the said contention and held that the
Appellant-MCD was performing its statutory obligations.
26. While allowing the applications filed by the Respondent No. 1, the
APTEL interpreted Section 63 of the Act and held that since the
Appellant-MCD was neither a distribution licensee nor a generating
company, it had no jurisdiction to file an application under Section 63
of the Act for adoption of tariff.
27. For appreciating the correctness of the findings of the APTEL, it
will be apposite to refer to Section 63 of the Act, which reads thus:
“63. Determination of tariff by bidding process.-
Notwithstanding anything contained in section 62, the
Appropriate Commission shall adopt the tariff if such
tariff has been determined through transparent process
of bidding in accordance with the guidelines issued by the
Central Government.”
28. It could thus be seen that under Section 63 of the Act, the Appropriate
Commission is entitled to adopt the tariff if such tariff has been
determined through a transparent process of bidding in accordance
with the guidelines issued by the Central Government.
29. It could be seen that a plain reading of Section 63 of the Act would
reveal that it does not restrict invoking of the provisions of Section 63
only to Discoms or generating companies.
30. It is a settled principle of law that the first and foremost principle of
interpretation is that of literal interpretation. When the statute read
in a literal manner is capable of giving meaning to the provision that
the legislation intended to and does not lead to any absurdity, it is
not permissible by judicial interpretation to add, alter, or delete any
words to such a statute. Reliance in this respect could be placed
on the judgment of this Court in the case of Punjab State Power
254 [2025] 1 S.C.R.
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Corporation Limited and another vs. Emta Coal Limited17 wherein
this Court has observed thus:
“23. The principle of giving a plain and literal meaning to
the words in a statute is well-recognised for ages. Though
there are a number of judgments, we may gainfully refer
to the judgment of this Court delivered by Das, J. as early
as 1955 in Jugalkishore Saraf v. Raw Cotton Co. Ltd.
[Jugalkishore Saraf v. Raw Cotton Co. Ltd. (1955) 1 SCR
1369 : AIR 1955 SC 376] : (AIR p. 381, para 6)
“6. … The cardinal rule of construction of
statutes is to read the statute literally, that is
by giving to the words used by the legislature
their ordinary, natural and grammatical meaning.
If, however, such a reading leads to absurdity
and the words are susceptible of another
meaning the Court may adopt the same. But
if no such alternative construction is possible,
the Court must adopt the ordinary rule of literal
interpretation.”
24. Though there are various authorities on the said
subject, we do not wish to burden the present judgment
by reproducing those. In our considered view, if the words
used in Section 11 of the said Act are construed in plain
and literal term, they do not lead to an absurdity and as
such, the rule of plain and literal interpretation will have
to be followed. We find that in case the interpretation as
sought to be placed by Shri Rohatgi is to be accepted, it will
do complete violence to the language of Section 11 of the
said Act. If it is held that under Section 11 of the said Act,
a prior contractor is entitled to continue if his performance
is found to be satisfactory and if there is nothing against
him, then it will be providing something in Section 11 of
the said Act which the statute has not provided for. It will
also lead to making the words “may elect, to adopt and
continue” redundant and otiose.
17 [2021] 11 SCR 772 : (2022) 2 SCC 1
[2025] 1 S.C.R. 255
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
25. It is a settled principle of law that when, upon a plain
and literal interpretation of the words used in a statute, the
legislative intent could be gathered, it is not permissible to
add words to the statute. Equally, such an interpretation
which would make some terms used in a statute otiose
or meaningless, has to be avoided. We therefore find
that if an interpretation as sought to be placed by EMTA
is to be accepted, the same would be wholly contrary to
the principle of literal interpretation. There are number of
authorities in support of the said proposition. However,
we refrain from referring to them in view of the following
observations made by this Court in a recent judgment in
Ajit Mohan v. Delhi Legislative Assembly [Ajit Mohan v.
Delhi Legislative Assembly (2022) 3 SCC 529 : 2021 SCC
OnLine SC 456] : (SCC para 240)
“240. … In our view if the proposition of law
is not doubted by the Court, it does not need
a precedent unless asked for. If a question is
raised about a legal proposition, the judgment
must be relatable to that proposition — and not
multiple judgments.”
As such, the contention in that regard is found to be
without merit.”
31. Upon a plain reading of Section 63 of the Act, it would reveal that the
power of the Appropriate Commission thereunder is, notwithstanding
anything contained in Section 62.
32. It can thus be seen that the intention of the legislature is to empower
the Appropriate Commission to adopt the tariff if such tariff has been
determined through a transparent process of bidding in accordance
with the guidelines issued by the Central Government.
33. The legislative purpose appears to be that when the power is
being produced through a process of bidding it has to be done in
a transparent manner. Another requirement is that the same must
be done in accordance with the guidelines issued by the Central
Government.
34. This Court in the case of Energy Watchdog (supra) has held that
when there are no guidelines, then the Central Commission can
256 [2025] 1 S.C.R.
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exercise power under Section 79(1)(b) of the Act. The provisions
of Section 86(1)(b) of the Act are analogous with Section 79(1)(b)
of the said Act.
35. A plain reading of Section 63 of the Act would not show that the
legislature intended to restrict the invocation of the jurisdiction of the
State Commission only by the Discoms or generating companies. In
our view, the interpretation as placed by the APTEL is adding words
in the provisions of Section 63 of the Act which the legislature did
not intend to.
36. As already stated herein above, when a provision in the statute upon
its plain reading is capable of giving a meaning to it as intended
by the legislature, then it will not be permissible for the courts to
add, alter, or delete the words to the said provision. In any case,
upon a plain reading of the provisions of Section 63 of the Act, the
meaning which we gather does not result in any absurdity. In such
a situation, addition of words in the statute by judicial interpretation
is wholly impermissible.
37. Apart from that, we are of the view that APTEL could not have read
the provisions of Section 63 of the Act in isolation. The provisions
of Section 63 will have to be read in harmony with the provisions of
Section 86(1)(b) of the Act, which reads thus:
“86. Functions of the State Commission.-(1) The State
Commission shall discharge the following functions,
namely:-
(a) ……………………………………………
(b) regulate electricity purchase and procurement
process of distribution licensees including the price at
which electricity shall be procured from the generating
companies or licensees or from other sources through
agreements for purchase of power for distribution and
supply within the State;”
38. A perusal of the provision of Section 86(1)(b) of the Act would reveal
that a duty is cast upon the State Commission to regulate electricity
purchase and procurement process of distribution licensees including
the price at which electricity shall be procured from the generating
companies or licensees or from other sources through agreements
for purchase of power for distribution and supply within the State.
[2025] 1 S.C.R. 257
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
39. It could thus be seen that the duty cast upon the State Commission
is to regulate:
(i) the electricity purchase and procurement process of distribution
licensees;
(ii) the price at which electricity shall be procured from the
generating companies or licensees, or;
(iii) from other sources through agreements for purchase of power
for distribution and supply within the State.
40. The legislative intent behind Section 86(1)(b) of the Act is to empower
the State Commission to regulate all matters regarding the electricity
purchase and procurement processes.
41. As held by this Court in the case of Jaipur Vidyut Vitran Nigam
Limited and others v. MB Power (Madhya Pradesh) Limited
and others,18 the State Commission is not a mere post office, but
a duty is cast upon it to balance the interests of consumers on one
hand and that of generators or Discoms on the other hand. If the
provisions of Section 63 of the Act are read in harmony with the
provisions of Section 86(1)(b) of the Act, the legislative intent that
could be gathered is that the State Commission while exercising its
powers under Section 63 of the Act shall adopt the tariff when it has
been determined in the bidding process. However, while adopting
the same it will have to be satisfied that the same is done in a
transparent manner. It will also have to be examined as to whether
the interests of the generators/Discoms on one hand are balanced
with the interests of the consumers.
42. In our view, reading the Section 63 of the Act in the manner in which
it has been interpreted by the APTEL, would impose unnecessary
restrictions on the powers and duties of the State Commission under
Section 86(1)(b) of the Act, which are of a very wide amplitude.
43. In this respect, we may refer to the judgment of this Court in the
case of Sanjay Ramdas Patil v. Sanjay and others19 wherein
this Court after referring to the earlier judgments of this Court has
observed thus:
18 [2024] 1 SCR 909 : (2024) 8 SCC 513
19 [2021] 11 SCR 640 : (2021) 10 SCC 306
258 [2025] 1 S.C.R.
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“25. In Balasinor Nagrik Coop. Bank Ltd. v. Babubhai
Shankerlal Pandya [Balasinor Nagrik Coop. Bank Ltd v.
Babubhai Shankerlal Pandya (1987) 1 SCC 606], this
Court observed thus : (SCC p. 608, para 4)
“4. … It is an elementary rule that construction
of a section is to be made of all parts together.
It is not permissible to omit any part of it. For,
the principle that the statute must be read as a
whole is equally applicable to different parts of
the same section.”
26. Again in Mohan Kumar Singhania v. Union of India
[Mohan Kumar Singhania v. Union of India, 1992 Supp
(1) SCC 594 : 1992 SCC (L&S) 455], this Court observed
thus : (SCC p. 624, para 67)
“67. We think, it is not necessary to proliferate
this judgment by citing all the judgments and
extracting the textual passages from the various
textbooks on the principles of Interpretation of
Statutes. However, it will suffice to say that
while interpreting a statute the consideration
of inconvenience and hardships should be
avoided and that when the language is clear
and explicit and the words used are plain
and unambiguous, we are bound to construe
them in their ordinary sense with reference to
other clauses of the Act or the Rules as the
case may be, so far as possible, to make a
consistent enactment of the whole statute or
series of statutes/rules/regulations relating to
the subject-matter. Added to this, in construing a
statute, the Court has to ascertain the intention
of the law-making authority in the backdrop
of the dominant purpose and the underlying
intendment of the said statute and that every
statute is to be interpreted without any violence
to its language and applied as far as its explicit
language admits consistent with the established
rule of interpretation.”
[2025] 1 S.C.R. 259
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
27. In Sultana Begum v. Prem Chand Jain [Sultana Begum
v. Prem Chand Jain (1997) 1 SCC 373], this Court observed
thus : (SCC pp. 381-82, para 15)
“15. On a conspectus of the case-law indicated
above, the following principles are clearly
discernible:
(1) It is the duty of the courts to avoid a head-
on clash between two sections of the Act and
to construe the provisions which appear to be
in conflict with each other in such a manner as
to harmonise them.
(2) The provisions of one section of a statute
cannot be used to defeat the other provisions
unless the court, in spite of its efforts, finds it
impossible to effect reconciliation between them.
(3) It has to be borne in mind by all the courts
all the time that when there are two conflicting
provisions in an Act, which cannot be reconciled
with each other, they should be so interpreted
that, if possible, effect should be given to both.
This is the essence of the rule of “harmonious
construction”.
(4) The courts have also to keep in mind that
an interpretation which reduces one of the
provisions as a “dead letter” or “useless lumber”
is not harmonious construction.
(5) To harmonise is not to destroy any statutory
provision or to render it otiose.”
(emphasis in original)
28. In Jagdish Singh v. Lt. Governor [Jagdish Singh v. Lt.
Governor (1997) 4 SCC 435], this Court observed thus :
(SCC p. 441, para 7)
“7. … It is a cardinal principle of construction of
a statute or the statutory rule that efforts should
be made in construing the different provisions, so
260 [2025] 1 S.C.R.
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that, each provision will have its play and in the
event of any conflict a harmonious construction
should be given. Further a statute or a rule
made thereunder should be read as a whole
and one provision should be construed with
reference to the other provision so as to make
the rule consistent and any construction which
would bring any inconsistency or repugnancy
between one provision and the other should
be avoided. One rule cannot be used to defeat
another rule in the same rules unless it is
impossible to effect harmonisation between
them. The well-known principle of harmonious
construction is that effect should be given to
all the provisions, and therefore, this Court has
held in several cases that a construction that
reduces one of the provisions to a “dead letter”
is not a harmonious construction as one part is
being destroyed and consequently court should
avoid such a construction.”
29. In CIT v. Hindustan Bulk Carriers [CIT v. Hindustan
Bulk Carriers (2003) 3 SCC 57] , this Court observed thus :
(SCC pp. 73-74, paras 16-21)
“16. The courts will have to reject that
construction which will defeat the plain intention
of the legislature even though there may be
some inexactitude in the language used. (See
Salmon v. Duncombe [Salmon v. Duncombe,
(1886) LR 11 AC 627 (PC) : 55 LJPC 69 : 55
LT 446] , AC at. 634, Curtis v. Stovin [Curtis v.
Stovin, (1889) LR 22 QBD 513 (CA) : 58 LJQB
174 : 60 LT 772] referred to in S. Teja Singh
case [CIT v. S. Teja Singh, AIR 1959 SC 352 :
(1959) 35 ITR 408] .)
17. If the choice is between two interpretations,
the narrower of which would fail to achieve the
manifest purpose of the legislation, we should
avoid a construction which would reduce the
[2025] 1 S.C.R. 261
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
legislation to futility, and should rather accept
the bolder construction, based on the view that
Parliament would legislate only for the purpose
of bringing about an effective result. (See Nokes
v. Doncaster Amalgamated Collieries Ltd. [Nokes
v. Doncaster Amalgamated Collieries Ltd., 1940
AC 1014 : (1940) 3 All ER 549 (HL) : 109 LJKB
865 : 163 LT 343] referred to in Pye v. Minister
for Lands for New South Wales [Pye v. Minister
for Lands for New South Wales, (1954) 1 WLR
1410 : (1954) 3 All ER 514 (PC)] .) The principles
indicated in the said cases were reiterated by
this Court in Mohan Kumar Singhania v. Union
of India [Mohan Kumar Singhania v. Union of
India 1992 Supp (1) SCC 594 : 1992 SCC
(L&S) 455] .
18. The statute must be read as a whole and
one provision of the Act should be construed
with reference to other provisions in the same
Act so as to make a consistent enactment of
the whole statute.
19. The court must ascertain the intention of
the legislature by directing its attention not
merely to the clauses to be construed but to
the entire statute; it must compare the clause
with other parts of the law and the setting in
which the clause to be interpreted occurs.
(See R.S. Raghunath v. State of Karnataka
[R.S. Raghunath v. State of Karnataka (1992)
1 SCC 335 : 1992 SCC (L&S) 286] .) Such
a construction has the merit of avoiding any
inconsistency or repugnancy either within a
section or between two different sections or
provisions of the same statute. It is the duty of
the court to avoid a head-on clash between two
sections of the same Act. (See Sultana Begum
v. Prem Chand Jain [Sultana Begum v. Prem
Chand Jain (1997) 1 SCC 373] .)
262 [2025] 1 S.C.R.
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20. Whenever it is possible to do so, it must be
done to construe the provisions which appear
to conflict so that they harmonise. It should not
be lightly assumed that Parliament had given
with one hand what it took away with the other.
21. The provisions of one section of the statute
cannot be used to defeat those of another unless
it is impossible to effect reconciliation between
them. Thus a construction that reduces one of
the provisions to a “useless lumber” or “dead
letter” is not a harmonised construction. To
harmonise is not to destroy.”
30. It could thus be seen that it is more than well settled
that it is the duty of the Court to construe the statute
as a whole and that one provision of the Act has to be
construed with reference to other provisions so as to
make a consistent enactment of the whole statute. It is
the duty of the Court to avoid a head-on clash between
two sections and construe the provisions which appear
to be in conflict with each other in such a manner so as
to harmonise them. It is further equally settled that while
interpreting a particular statutory provision, it should not
result into making the other provision a “useless lumber”
or a “dead letter”. While construing the provisions, the
Court will have to ascertain the intention of the law-making
authority in the backdrop of dominant purpose and the
underlying intendment of the statute.”
44. We are, therefore, of the considered view that when the provisions
of Section 63 of the Act are read in harmony with the provisions of
Section 86(1)(b) of the Act, the powers of the State Commission
cannot be curtailed by interpreting that the same can be invoked
only by the Discoms or the generating companies.
45. It will further be relevant to refer to the provisions of Section 174
and 175 of the Act, which read thus:
“174. Act to have overriding effect.- Save as otherwise
provided in section 173, the provisions of this Act shall
have effect notwithstanding anything inconsistent therewith
[2025] 1 S.C.R. 263
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
contained in any other law for the time being in force or
in any instrument having effect by virtue of any law other
than this Act.
175. Provisions of this Act to be in addition to and not
in derogation of other laws.- The provisions of this Act
are in addition to and not in derogation of any other law
for the time being in force.”
46. A perusal of Section 174 of the Act would reveal that, save as
otherwise provided in Section 173, the provisions of the Act shall have
effect notwithstanding anything inconsistent therewith contained in
any other law for the time being in force or in any instrument having
effect by virtue of any law other than the Act.
47. Section 175 of the Act provides that the provisions of the said Act
are in addition to and not in derogation of any other law for the time
being in force.
48. In our view, there is no inconsistency between the provisions of
Section 63 of the Act and Rule 15 of the SWM Rules 2016. The
provisions of Rule 15 of the SWM Rules 2016, which are enacted
under the Environment (Protection) Act, 1986, mandate the appellant
to undertake WTE project(s).
49. It can thus be seen that insofar as the WTE projects are concerned,
the provisions under the Act will have to be read in addition to
the provisions under Rule 15 of the SWM Rules 2016 and not in
derogation thereof.
50. Apart from that, Rule 6.4 of the Tariff Policy, which is notified in
compliance with the mandate of Section 63 of the Act, the distribution
licensees are mandated to compulsorily procure 100% of the power
produced from all the WTE plants in the State in the ratio of their
procurement of power from all sources including their own. Not
only that, the Appropriate Commission is also required to provide
suitable regulatory framework for encouraging such other emerging
renewable energy technologies.
51. It will also be relevant to refer to the provisions of Section 86(1)(e)
of the Act, which read thus:
“86. Functions of the State Commission.-(1) The State
Commission shall discharge the following functions,
namely:-
264 [2025] 1 S.C.R.
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(a) ……………………………………………
(e) promote cogeneration and generation of electricity
from renewable sources of energy by providing
suitable measures for connectivity with the grid and
sale of electricity from such sources, a percentage
of the total consumption of electricity in the area of
a distribution licensee;”
52. It can thus be seen that the provisions of Section 86(1)(e) of the
Act read with Rule 6.4 of the Tariff Policy provide for promoting
cogeneration and generation of electricity from renewable sources
of energy by providing suitable measures for connectivity with the
grid and sale of electricity from such sources, a percentage of the
total consumption of electricity in the area of a distribution licensee.
53. We are of the considered view that the APTEL has failed to take
into consideration all these aspects of the matters.
54. In any case, the APTEL has grossly erred in treating the present
Appellant-MCD as a total stranger. The WTE project was on Design,
Build, Finance and Operate basis. The ownership of the said Project
was always to be with the Appellant-MCD and the operation of the
facility is required to be transferred back to the Appellant-MCD after
25 years. The reasoning given by the APTEL, that if the application
of the Appellant-MCD for adoption of tariff was held to be tenable,
then it would amount to permitting any stranger to apply under
Section 63 of the Act, is factually not correct. The APTEL failed to
take into consideration that the Appellant-MCD was establishing the
said Project in order to perform its statutory obligations. The plain
reading of Section 63 of the Act would reveal that the Appropriate
Commission has to adopt the tariff only after being satisfied that such
a tariff has been determined through a transparent process of bidding
in accordance with the guidelines issued by the Central Government.
55. The DERC, after taking into consideration all the relevant factors,
had granted its approval to the tariff with certain conditions. The
relevant factors which were taken into consideration by the DERC
while granting the approval were:
(i) the mandate of Rule 15 of the SWM Rules 2016;
(ii) the financial evaluation report which was sent by the Bidding
Evaluation Committee;
[2025] 1 S.C.R. 265
Municipal Corporation of Delhi v. Gagan Narang & Ors. Etc
(iii) the certificate on the conformity that the bidding process had
been completed by following the transparent process; and
(iv) that there was a mandate under the NTP to the effect that the
entire power generated by the WTE project was to be procured
by the Discoms.
However, the same has been upset by the APTEL only on a hyper-
technical ground.
56. The APTEL also failed to take into consideration that the WTE project
in question was in the larger public interest thereby providing for
disposal of the huge quantity of waste generated in the city of Delhi.
57. Since we are inclined to allow the appeals of the appellant on the
aforesaid grounds, we do not find it necessary to go into the contention
of the appellant with regard to locus of the Respondent No.1 in filing
the appeals before the APTEL.
58. In the result, we pass the following order:
(i) the appeals are allowed;
(ii) the Impugned common final judgment and order of the Appellate
Tribunal for Electricity at New Delhi dated 31st August 2023
passed in DFR No. 245 of 2023 and DFR No. 247 of 2023 is
quashed and set aside;
(iii) the orders of the Delhi Electricity Regulatory Commission dated
6th March 2023 in Petition No. 65 of 2022 and 7th March 2023
in Petition No. 72 of 2022 are affirmed.
59. Pending application(s), if any, shall stand disposed of.
Result of the case: Appeals allowed.
†
Headnotes prepared by: Divya Pandey
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