LLM Notes: Public Utilities Law Summary

 Here is a structured summary and key points  that address the broad topics related to Public Utilities Law:

1. Definition, Privileges, and Obligations of Public Utility Services

·       Definition: Public utility services are essential services linked to daily life, provided primarily by the government or government-controlled bodies (e.g., electricity, water supply, public transport, postal services, telecommunications, health services, gas supply).

·       Privileges: Include legal protection (e.g., Essential Services Maintenance Act), priority status in resources, subsidies, and government ownership/control.

·       Obligations: Universal access to services, continuity and regularity, reasonable pricing, quality service, and grievance redressal mechanisms.

2. Administrative Authorities and Their Structure

·       Defined as government or government-controlled bodies responsible for implementing policies, providing services, regulation, and decision-making.

·       Structured on three levels: Central, State, and Local (district/local authorities).

·       Includes autonomous and regulatory bodies like UGC, TRAI, SEBI, RBI.

3. Public Utilities under Article 12 of the Indian Constitution — Are They "State"?

·       Public utility services may be considered "State" under Article 12 if:

o   Owned or controlled by the government.

o   Financed or extensively regulated by the government.

o   Performing public functions.

·       Important cases:

o   R.D. Shetty v. International Airport Authority (1979)

o   Ajay Hasia v. Khalid Mujib (1981)

o   Sukhdev Singh v. Bhagat Ram (1975)

o   Zee Telefilms Ltd. v. Union of India (2005)

·       Such bodies are accountable for fundamental rights compliance, and writ petitions can be filed against them.

4. Consumer Rights Under Consumer Protection Act

·       Consumer defined as any person who buys goods or hires services for consideration.

·       Rights include: right to safety, information, choice, redressal, consumer education, and protection against unfair trade practices.

·       Consumer Protection Act, 2019 modernizes the framework and includes statutory bodies and public utilities as service providers accountable to consumers.

5. Regulating Public Utilities

·       Public utilities are regulated through laws like Electricity Act, 2003; Telecom Regulatory Authority of India Act; Indian Telegraph Act, etc.

·       Regulatory Commissions (CERC, MERC, TRAI) oversee pricing, service standards, grievance redressal.

·       Government and Parliament maintain parliamentary control through questions, debates, committees (PAC, COPU).

6. Tortious Liability of Public Utilities

·       Public corporations are legal persons and liable for torts committed by their employees during employment (vicarious liability).

·       They have immunity only in sovereign functions.

·       Strict and absolute liability doctrines apply depending on the case (e.g., MC Mehta v. Union of India establishes absolute liability for hazardous activities).

7. Strike in Public Utility Services

·       Strikes are allowed but highly regulated under Industrial Disputes Act, 1947.

·       Prior notice and conciliation are mandatory.

·       Illegal strikes attract penalties; government employees generally do not have the right to strike.

8. Growth and Evolution of Public Utility Services and Legislations

·       Originating from basic societal needs and industrial revolution.

·       State involvement grew post-independence with public sector undertakings (PSUs).

·       Legislative evolution from Indian Telegraph Act, Railway Act to modern laws like Electricity Act 2003.

·       Liberalization from 1991 introduced private participation and regulatory reforms.

9. Parliamentary Control and Government Role

·       Ensures accountability, efficiency, and protection of public interest through legislative oversight, committees, financial control, and question hours.

·       Government monopoly in critical utilities justified by public welfare, natural monopoly characteristics, affordability, and regional balance requirements.

10. Significant Judicial Interpretations and Landmark Cases

·       Ajay Hasia (1981): Instrumentality of State test for Article 12.

·       Sukhdev Singh (1975): Public corporations as state and fundamental rights applicability.

·       MC Mehta (1987): Absolute liability on public enterprises for hazardous activities.

·       Air Hostess Case (Air India v. Nergesh Meerza, 1981): Gender discrimination in public utilities employment invalidated.

·       Indra Sawhney (1992): Reservation and equality in public employment.

·       Others relating to administrative discretion, right to equality, tortious liabilities, consumer rights, and public utility definitions.

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