Section 121: Power of Appellate Tribunal

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 121

Section 121 of the Electricity Act, 2003 empowers the Appellate Tribunal to issue orders, instructions, or directions to the Appropriate Commissions for the performance of their statutory functions, exercising supervisory regulatory control.

  • Supervisory Jurisdiction Over Regulatory Commissions: Empowers APTEL to issue general or specific supervisory directions to CERC and SERCs to compel timely performance of statutory duties.
  • Remedy Against Regulatory Inaction & Paralysis: Provides an extraordinary remedy for utilities and consumers where a State Commission refuses or delays determining tariffs or processing petitions.
  • Mandatory Hearing Prerequisite: Requires the Tribunal to provide the concerned Commission an opportunity of being heard before issuing directions under this section.
Key Landmark Precedents:
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Supreme Court held that Section 121 confers supervisory administrative powers on APTEL to ensure that Commissions perform their statutory duties without lethargy, but does not authorize interfering in judicial discretion.
  • Tata Power Co. Ltd. v. Reliance Energy Ltd. (2009) 16 SCC 659: Supreme Court affirmed that Section 121 empowers APTEL to direct State Commissions to pass pending tariff orders within time-bound deadlines.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Affirmed that supervisory orders under Section 121 prevent regulatory paralysis in the power sector.
Courtroom Practice & Strategic Litigation Guidance:

If a State Commission sits on a tariff revision or open-access petition for over a year without holding hearings, file a supervisory petition under Section 121 before APTEL praying for a peremptory direction compelling the SERC to decide the petition within sixty days.