In Brief
The Electricity Act, 2003 establishes State and Central Regulatory Commissions to regulate electricity tariffs and related matters. The core issue was whether Section 84(2)—which uses the word "may"—mandates that a High Court Judge must chair the State Commission. The Supreme Court held that the provision is discretionary, not mandatory; States may but need not appoint a Judge as Chairperson. However, the Court ruled that for any adjudicatory functions, including dispute resolution between utilities, the Commission bench must include at least one member with substantial legal qualifications equivalent to High Court Judge standards, given the Commission's "trappings of a court."
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