Electricity Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2003
Section 174 of Electricity Act: Act to have overriding effect
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
Save as otherwise provided in section 173 , the provisions of this 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 this Act.
Section 174 of the Electricity Act, 2003 enacts the definitive non-obstante overriding effect clause, declaring that the provisions of this 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.
Plenary Statutory Overriding Competence: Ensures that the provisions of the Electricity Act, 2003 prevail over conflicting state statutes, municipal enactments, or legacy contracts.
Invalidation of Conflicting State Laws & Agreements: Renders null and void any state enactment or contractual covenant that restricts open access, dilutes commission jurisdiction, or impairs national grid integrity.
Primacy in Sectoral Regulation: Establishes the Electricity Act, 2003 as the supreme, unified national charter governing all power generation, transmission, and distribution in India.
Key Landmark Precedents:
Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2008) 4 SCC 755: Supreme Court held that Section 174 is a plenary non-obstante clause that gives the Electricity Act overriding effect over all other laws, including the Arbitration and Conciliation Act, 1996.
Energy Watchdog v. CERC (2017) 14 SCC 80: Supreme Court affirmed that the statutory framework of the Electricity Act overrides conflicting commercial covenants and administrative circulars.
PTC India Ltd. v. CERC (2010) 4 SCC 603: Constitution Bench affirmed that regulations framed under the Act carry statutory overriding force under Section 174.
Courtroom Practice & Strategic Litigation Guidance:
When a municipal authority, local revenue law, or general statute conflicts with the Electricity Act (e.g., state rent laws or local municipal tax rules obstructing power supply), invoke Section 174 to establish the absolute supremacy of the Electricity Act.
Legal Commentary & Landmark Judgments: Section 174
Section 174 of the Electricity Act, 2003 enacts the definitive non-obstante overriding effect clause, declaring that the provisions of this 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.
When a municipal authority, local revenue law, or general statute conflicts with the Electricity Act (e.g., state rent laws or local municipal tax rules obstructing power supply), invoke Section 174 to establish the absolute supremacy of the Electricity Act.