New Delhi, Nov 6 (PTI) Bringing the curtain down on a decades-old interstate energy dispute over the payment of dues arising from Bhakra Beas Management Board projects since 1966, the Supreme Court on Friday directed Punjab and Haryana to give Himachal Pradesh 11,973 million units of electricity arrears in the next 20 years.
A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana accepted the Centre's cashless proposal settling the liability in favour of Himachal in energy arrears and rejected the objections raised by Punjab.
"The energy arrears due to the Plaintiff-State, as computed by the Union of India, shall be taken at 13,066 million units (MU). The same shall be supplied by the States of Punjab and Haryana at the rate of 653 MU per annum over 20 lean seasons, being the period from October to March, in the inter se ratio of 58:42 for the Bhakra-Nangal Project and 60:40 for the Beas Projects," the bench said.
It said Himachal Pradesh would pay the charges determined by the Bhakra Beas Management Board (BBMB) for the year in which each tranche of energy is received.
The bench said that Himachal’s liability towards its 7.19% share of the capital cost of the Bhakra-Nangal and Beas Projects, representing the un-reimbursed share of loan servicing undertaken by Punjab and Haryana since 1966–67, would be assessed at Rs 420.77 crore, comprising Rs 249.23 crore attributable to Punjab and Rs 171.55 crore attributable to Haryana.
It said the capital-cost liability would be adjusted against a corresponding portion of the energy arrears due to Himachal Pradesh and for this purpose, the energy shall be valued at the rate of Rs 3.85 per unit, resulting in an adjustment of approximately 1,093 MU against the capital-cost liability.
"Upon giving effect to the aforesaid adjustment, the balance energy arrears payable to the Plaintiff-State shall stand at approximately 11,973 MU. This balance shall be supplied by Punjab and Haryana at the rate of approximately 598 MU per annum over 20 lean seasons, in the inter se ratio of 58:42 for the Bhakra-Nangal Project and 60:40 for the Beas Projects," the top court held.
The bench clarified that the settlement shall be implemented on a cashless basis, with the capital-cost liability being adjusted against the energy arrears in the manner set out above, and with the remaining energy being supplied in accordance with the said schedule.
Taking note of non-compliance of decree by Punjab and Haryana issued by the apex court in 2011, the top court said, “As a matter of abundant concern, we must express in no uncertain terms to all the concerned stakeholders that the directions issued by this court are binding and are required to be acted upon without reservation. The expectation of decree, having remained pending for several decades, cannot be rendered fruitless by reason of the unwillingness or recalcitrance of a judgment debtor.”
It also appreciated the sustained efforts of Attorney General R Venkataramani for not only facilitating attempts at mediation between the parties, but also in formulating a framework with a view to bringing this long-standing dispute to a conclusion.
"It is particularly unfortunate that a dispute which has remained pending for several decades continues to be prolonged, requiring further judicial time and attention. It therefore becomes imperative that the issues which still remain to be resolved are brought to a final quietus. We trust that all concerned parties will extend their cooperation and ensure that the directions issued by this court are implemented in their true letter and spirit," the bench underscored.
The bench termed the objections raised by Punjab on the final figure of arrears as computed by the Centre as “vague and superficial" and amounting to an attempt to re-litigate issues already settled by the court in its decree dated September 27, 2011.
It said the reservations of the Punjab government to the efforts undertaken by the Centre have, prima facie, given rise to an avoidable stalemate and the court upon a more considered examination of the contentions was not "persuaded to accept any of them".
The Himachal Pradesh government had all along maintained that the state was entitled to the arrears on the terms decided by the apex court in 2011.
After failing to settle an interstate dispute about allocation of assets for decades following the Punjab Reorganisation Act, 1966, Himachal had moved the apex court in 1996 through an original suit, pleading that as a successor state, it was entitled to 7.19 per cent share in the BBMB projects.
After the Centre failed to settle the dispute between the two neighbouring states out of court, the top court on September 27, 2011 passed a decree.
According to the 2011 decision of the apex court, Himachal was entitled to 7.19% of the power generated from the Bhakra-Nangal and Beas Projects, while the share of Punjab and Haryana was fixed at 51.80 per cent and 37.51 per cent, respectively.
Rajasthan's share largely remained unaffected, while the share of Chandigarh was fixed at 3.50 per cent.
The 2011 decision said Himachal will get a share in the Bhakra project from November 1, 1966, the Dehar project from November 1977, and the Pong Dam project from January 1978.
(This story has not been edited by THE WEEK and is auto-generated from PTI)