In Brief
The Supreme Court upheld the Appellate Tribunal's order affirming that the Damodar Valley Corporation, a multi-purpose statutory body established under the 1948 Act for flood control, irrigation, and power generation, may continue applying provisions of its constituting statute for tariff determination under the 2003 Electricity Act. The Court held that the fourth proviso to Section 14 of the 2003 Act—enabling continued application of the 1948 Act's provisions not inconsistent with the 2003 Act—is substantive law permitting use of financial provisions like depreciation and sinking fund rules. Subordinate regulatory rules cannot override enacted statutes. The Court dismissed all consumer and regulator appeals challenging tariff components (pension funds, debt-equity ratios, cost allocation) and affirmed the two-year transition period, recognizing the Corporation's unique social welfare mandate makes it distinct from commercial licensees.">
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