Section 123: Decision to be by majority

Electricity Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003

Legal Commentary & Landmark Judgments: Section 123

Section 123 of the Act provides that the decision of the Appellate Tribunal shall be according to the opinion of the majority of Members, and in case of equality of votes, the matter shall be referred to the Chairperson for reference to another Member.

  • Democratic Majority Decision Rule: Requires all appeals and applications to be decided by a majority of votes of the Members hearing the matter.
  • Statutory Mechanism for Split Benches: Provides that if the Members of a two-member bench divide equally on any point, they shall state the point of difference, and the Chairperson shall refer it to a third Member for final decision.
  • Binding Effect of Third-Member Opinion: Directs that the point of difference shall be decided according to the opinion of the majority of Members who heard the case, including the third Member.
Key Landmark Precedents:
  • PTC India Ltd. v. CERC (2010) 4 SCC 603: Supreme Court affirmed that the reference mechanism under Section 123 resolves judicial deadlocks while preserving collegiate decision-making.
  • Energy Watchdog v. CERC (2017) 14 SCC 80: Affirmed that split decisions in complex tariff appeals must be determined strictly through the statutory referral procedure.
  • Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2008) 4 SCC 755: Affirmed that the third-member opinion on referral constitutes the final majority holding of the Tribunal.
Courtroom Practice & Strategic Litigation Guidance:

Where an APTEL two-member bench delivers a split verdict (e.g., Judicial Member allowing the appeal, Technical Member dismissing it), immediately file a praecipe before the Chairperson under Section 123 praying for expeditious reference to a third Member.