New Delhi: The Supreme Court said on Wednesday that every action of the State is required to be guided by the touchstone of non-arbitrariness, reasonableness and rationality and is equally required to be guided by public interest.
It said that power distribution companies (DISCOMS) are instrumentalities of the State within the meaning of Article 12 of the Constitution of India and every holder of a public office is a trustee, whose highest duty is to the people of the country.
The top court deprecated the conduct of DISCOMS in Andhra Pradesh for purchasing power at a higher rate and said rather than acting in public interest, they have acted contrary to it.
These remarks were made by a bench of Justices L N Rao and B R Gavai in its verdict on a plea filed by DISCOMS challenging the January 7, 2020 order passed by the Appellate Tribunal for Electricity (APTEL) allowing the appeal of Hinduja National Power Corporation Limited (HNPCL).
APTEL directed the Andhra Pradesh Electricity Regulatory Commission (APERC) to dispose of a plea filed by HNPCL for determination of capital cost and the plea filed by the DISCOMS for approval of amended and restated Power Purchase Agreement (PPA) on merits.The top court refused to interfere with the orders of APTEL and asked APERC to decide the pleas pending before it within six months from the date of the judgement.
It further directed, Needless to say that till (pleas) are decided by the State Commission, the appellants – DISCOMS shall forthwith start purchasing the power from HNPCL at the rate of Rs 3.82 per unit as per the orders passed by the APTEL dated March 16, 2018 and by this Court dated August 21, 2020 .
The bench said, Undisputedly, the appellants-DISCOMS are instrumentalities of the State and as such, a State within the meaning of Article 12 of the Constitution of India. Every action of a State is required to be guided by the touchstone of non -arbitrariness, reasonableness and rationality. Every action of a State is equally required to be guided by public interest .