Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 106 of Electricity Act: Electricity Supply & Regulatory Procedure
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
The Appropriate Commission may, at any time, direct any person to investigate into the affairs of any generating company or licensee and to report to the Commission on any investigation made by such person.
Section 106 of the Act mandates that the Appropriate Commission shall prepare its budget for the next financial year showing estimated receipts and expenditures, and forward it to the Appropriate Government.
Statutory Budget Formulation Mandate: Requires the Commission to prepare an annual forward-looking budget detailing anticipated revenues from fees and operational expenditure needs.
Timely Submission Schedule: Obligates the Commission to forward the approved budget to the Government at prescribed times prior to the commencement of the financial year.
Financial Planning & Resource Allocation: Ensures that regulatory expansion, IT digital portal upgrades, and expert consultancies are planned with fiscal prudence.
Key Landmark Precedents:
State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Supreme Court affirmed that structured budget preparation under Section 106 is essential to guarantee seamless administrative operations.
PTC India Ltd. v. CERC (2010) 4 SCC 603: Affirmed that financial planning ensures regulatory commissions maintain state-of-the-art analytical infrastructure.
Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Affirmed the importance of fiscal discipline in utility regulatory bodies.
Courtroom Practice & Strategic Litigation Guidance:
Regulatory secretariats must ensure the Section 106 budget is finalized and submitted before state finance department deadlines to prevent funding delays for judicial bench operations.
Legal Commentary & Landmark Judgments: Section 106
Section 106 of the Act mandates that the Appropriate Commission shall prepare its budget for the next financial year showing estimated receipts and expenditures, and forward it to the Appropriate Government.
Regulatory secretariats must ensure the Section 106 budget is finalized and submitted before state finance department deadlines to prevent funding delays for judicial bench operations.