MADHYA PRADESH STATE ELECTRICITY BOARD Vs. UOI

JUDGEMENT

(1.) These writ petitions concern the allocation of power between the States of Madhya Pradesh and Chhattisgarh, pursuant to reorganisation of the erstwhile State of Madhya Pradesh under the Madhya Pradesh Reorganisation Act, 2000 ["the Act"].

(2.) Under Sec. 75(2) of the Act, the Central Government was empowered to determine the share of the successor states, in the entitlement of the erstwhile State of Madhya Pradesh, to power produced by Central Government undertakings ["Central sector power"]. The Union of India ["UOI"] issued a provisional allocation order on 31/1/2001, which has been challenged by Madhya Pradesh State Electricity Board ["MPSEB"] in W.P.(C) 2200/2002. The final order was issued by the UOI on 3/11/2004. This is the subject matter of challenge by the Chhattisgarh State Electricity Board ["CSEB"] in W.P.(C) 5789/2005.1 II. Facts: 1 In the course of final hearing, a contention was raised by UOI that the disputes raised are amenable to the exclusive jurisdiction of the Supreme Court under Article 131 of the Constitution. By an order dtd. 10/4/2024, however, the petitions were held to be maintainable, having regard inter-alia to the judgments of the Supreme Court in State of Meghalaya v. Union of India [2023 SCC OnLine SC 613], Tashi Delek Gaming Solutions Ltd.& Anr. v. State of Karnataka & Ors. [ (2006) 1 SCC 442 ] and Union of India v. State of Rajasthan [ (1984) 4 SCC 238 ].

(3.) The erstwhile State of Madhya Pradesh was reorganised into two successor states - the States of Madhya Pradesh and Chhattisgarh, by virtue of the Act, with effect from 1/11/2000. The Act provided for the allocation of assets and liabilities between the two states. Sec. 58 of the Act provides for the constitution of State Electricity Boards ["SEB"] in each of the successor states. It contemplates the division of assets, rights and liabilities of the erstwhile Electricity Board between the successor states by mutual agreement, failing which by a manner in which the Central Government may deem fit.