Supreme Court Considers Validity of Safety Regulation and Government Exemption Order Under Electricity Act, 2003. The Court addressed whether Regulation 116 is ultra vires, if transfer schemes protect unqualified employees, and the arbitrariness of a Government Order granting exemptions from safety qualifications.

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Case Note & Summary

The dispute originated from a writ petition filed in the High Court of Kerala challenging Regulation 116 of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 as ultra vires the Electricity Act, 2003, and contesting a Government Order dated 13.02.2019 that granted exemptions from qualifications under Regulations 6 and 7 of the Safety Regulations. The petitioner sought declarations that Regulation 116 was void, that the State lacked power to allow deviations under it, and that the Government Order was arbitrary. A learned Single Judge of the High Court declared Regulation 116 beyond the Central Electricity Authority's power under the Electricity Act and held the Government Order unsustainable, directing promotions strictly per Regulations 6 and 7. KSEBL appealed to a Division Bench, which formulated three points: the vires of Regulation 116, whether a transfer scheme under Sections 131 and 133(2) of the Electricity Act could protect unqualified employees, and the validity of the Government Order. The Division Bench held Regulation 116 not ultra vires or manifestly arbitrary, and that exemption under the Government Order could only apply to employees employed prior to 31.10.2013, partially setting it aside for those joining after that date. Appeals were filed to the Supreme Court via special leave petitions. Appellants argued that 'deviation' in Regulation 116 does not mean 'exemption', citing precedents, and that exempting pre-2013 employees compromises safety. Respondents, including the State of Kerala and KSEBL, contended that deviation includes exemption, supported by Section 133(2) protecting service conditions under transfer schemes, and that electricity being in the Concurrent List permits State action. The Additional Solicitor General for the Central Electricity Authority noted deviation is permissible but not lump-sum exemption. The Supreme Court's analysis in the provided text references the Electricity Act's consolidation purpose and relevant provisions like Section 53 on safety, but the full reasoning and decision are not detailed in the excerpt. The procedural history includes the writ petition, Single Judge decision, Division Bench appeal, and Supreme Court appeals, with arguments centered on statutory interpretation, vires, and employee protections.

Headnote

A) Administrative Law - Subordinate Legislation - Validity of Regulation 116 - Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010, Regulation 116 - The Division Bench of the High Court held that Regulation 116 is not ultra vires the Electricity Act, 2003 nor manifestly arbitrary, and is in line with the enactment's objects. The Supreme Court considered this issue but the judgment text does not specify the Supreme Court's final holding on this point. (Paras 2-3)

B) Constitutional Law - Concurrent List - State Government Power - Electricity Act, 2003, Section 133 - Electricity falls under List III of the Seventh Schedule, enabling State Government action. The Additional Solicitor General contended that deviation is permissible under Regulation 116 by the State Government due to electricity being in the Concurrent List. (Para 4)

C) Electricity Law - Safety Regulations - Qualifications and Exemptions - Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010, Regulations 6, 7 - Regulations 6 and 7 prescribe qualifications for engineers, supervisors, and technicians. The Division Bench held that exemption from these regulations under the order dated 13.02.2019 can only apply to employees employed with KSEBL on the date of the transfer scheme formulation, not those joining after 31.10.2013. (Paras 2-3)

D) Electricity Law - Transfer Scheme - Protection of Service Conditions - Electricity Act, 2003, Section 133(2) - Section 133(2) provides that terms and conditions of transferred personnel under a transfer scheme shall not be less favourable than pre-transfer. Respondents argued that this protects all conditions of service, including promotions, for erstwhile employees. (Paras 5-6)

E) Statutory Interpretation - Meaning of 'Deviation' - Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010, Regulation 116 - Appellants argued that 'deviation' cannot mean 'exemption', citing precedents. Respondents contended that deviation includes exemption. The Division Bench's judgment did not explicitly resolve this interpretation in the provided text. (Paras 4-5)

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Issue of Consideration

Whether Regulation 116 of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 is ultra vires the Electricity Act, 2003; whether a transfer scheme under Section 131 read with Section 133(2) of the Electricity Act, 2003 can protect employees lacking qualifications under Safety Regulations; whether the Government Order dated 13.02.2019 is arbitrary

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Law Points

  • Interpretation of 'deviation' in subordinate legislation
  • vires of regulations under parent statute
  • protection of service conditions under transfer schemes
  • permissible delegation of power
  • manifest arbitrariness test
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Case Details

2022 Lawtext (SC) (2) 68

Special Leave Petition (Civil) Nos. 9564-9566/2020, Special Leave Petition (Civil) No. 10226/2020

2022-02-18

L. Nageswara Rao

Mr. V. Chitambaresh, Mr. K. Rajeev, Ms. Aishwarya Bhati, Mr. P.V. Surenderanath, Mr. P.V. Dinesh, Mr. P.N. Ravindran, Mr. M.T. George, Mr. Venugopalan Nair

Muhammed A.A. & Ors.

State of Kerala & Ors.

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Nature of Litigation

Writ petition challenging vires of regulation and validity of government order under electricity laws

Remedy Sought

Petitioner sought declarations that Regulation 116 is ultra vires and void, that State has no power to allow deviation under it, and that Government Order dated 13.02.2019 is arbitrary

Filing Reason

To contest exemptions from safety qualifications for employees and the validity of subordinate legislation

Previous Decisions

Single Judge declared Regulation 116 beyond power and Government Order unsustainable; Division Bench held Regulation 116 not ultra vires and partially set aside Government Order for employees joining after 31.10.2013

Issues

Is Regulation 116 of the Safety Regulations ultra vires the Electricity Act, 2003? Can a transfer scheme under Section 131 r/w Section 133(2) of the Electricity Act protect employees lacking qualifications under Safety Regulations? Is the Government Order dated 13.02.2019 arbitrary?

Submissions/Arguments

Appellants argued 'deviation' does not mean 'exemption' and exemptions compromise safety Respondents argued deviation includes exemption, supported by Section 133(2) protecting service conditions Additional Solicitor General contended deviation permissible but not lump-sum exemption

Judgment Excerpts

Regulation 116 of the Safety Regulations is neither ultra vires the Electricity Act nor manifestly arbitrary The exemption from the applicability of Regulation 6 & 7 of the Safety Regulations by the order dated 13.02.2019 can be granted only in favour of persons who were employed with the KSEBL on the date of the formulation of the transfer scheme Electricity falls in List III- Concurrent List, Seventh Schedule of the Constitution of India, 1950

Procedural History

Writ Petition filed in High Court of Kerala; Single Judge decided in favor of petitioner; Division Bench partly allowed appeal; Special Leave Petitions filed in Supreme Court

Acts & Sections

  • Electricity Act, 2003: Section 53, Section 131, Section 133, Section 133(2)
  • Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010: Regulation 6, Regulation 7, Regulation 116
  • Constitution of India, 1950: Seventh Schedule, List III
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