LLM Short Notes on Public Utility Laws

 1. Evolution of Public Utilities in India: Historical and Legislative Development

Colonial Era (1850s-1947): British established foundational legal structures - Indian Electricity Act 1910 (first comprehensive electricity regulation), Railway Act 1890, Northern India Canal and Drainage Act 1873, Government of India Act 1935 (federal structure for utilities).

Post-Independence (1947-1991): State-led development marked by Industrial Policy Resolution 1956 (declared utilities should be in public sector), Electricity (Supply) Act 1948 (created State Electricity Boards), Railways Act 1951 (nationalization), Constitution 1950 (government ownership of water resources).

Liberalization Era (1991-2003): Economic reforms introduced private participation - 73rd and 74th Amendments 1992 (empowered local bodies for utilities), regulatory commissions established.

Contemporary (2003-Present): Electricity Act 2003 (unbundling, competition), Telecommunications Act 2023 (modernization), continued reforms balancing efficiency with universal access.

2. Administrative Authorities in Public Utilities: Structure and Subordinate Legislation

Three-Tier Hierarchical Framework:

Central Level: CERC (Central Electricity Regulatory Commission - interstate electricity), TRAI (Telecom Regulatory Authority - nationwide telecom), FSSAI (Food Safety Standards Authority), AERA (Airports Economic Regulatory Authority - major airports).

State Level: SERCs (State Electricity Regulatory Commissions - intra-state electricity), MWRRA (Maharashtra Water Resources Regulatory Authority - India's first independent water regulator).

Local Level: Municipal bodies and district authorities implementing utility services at ground level.

Composition: Typically one chairperson with 2-3 expert members appointed for 5-year terms

Subordinate Legislation: Rules, regulations, orders, and bye-laws made by authorities under enabling Acts. Article 13(3) recognizes these as "law". Authority must operate within statutory framework with parliamentary, judicial, and committee oversight.

3. Reasons for Government Monopoly in Public Utilities

Constitutional Basis: Article 12 (defines State broadly), Article 39(b)(c) (Directive Principles - resources for common good), Ajay Hasia test (determines state instrumentality).

Economic Justifications:

·       Natural Monopoly: Huge fixed infrastructure costs make single provider more efficient (railways, electricity transmission)

·       Economies of Scale: Per-unit costs decrease as output increases

·       Market Failure Correction: Prevents cream-skimming, ensures service continuity

Social Welfare Objectives:

·       Universal Service Obligation: Ensures services reach all areas regardless of profitability

·       Cross-Subsidization: Urban/industrial profits subsidize rural/agricultural consumers (75% electricity subsidies to agriculture, 20% to domestic users)

·       Service Continuity: Essential Services Maintenance Act ensures uninterrupted service

Examples: Indian Railways, electricity boards, telecommunications, water supply.

4. Exclusion of Public Utilities from MRTP Act

Section 3 MRTP Act 1969: Exempted government undertakings, government companies, and statutory corporations from MRTP provisions

Rationale: Post-independence mixed economy philosophy - public utilities serve social objectives, not profit; state monopoly needed for equitable distribution and public welfare; focus was on preventing private monopolies.

Impact: MRTP Commission had no jurisdiction over public utilities, allowing them to operate without competition law constraints.

Transformation: Competition Act 2002 replaced MRTP Act, bringing public utilities under competition law scrutiny. Only narrow exemptions remain for sovereign functions (atomic energy, defense, currency, space). Coal India v. CCI (2023): PSUs cannot claim blanket immunity from competition law.

5. Structure of Administrative Authorities in Public Utilities

(Same as Question 2 - see above)

6. Public Utilities as Part of "State": Constitutional Protection for Employees

Article 12 Definition: State includes "all local or other authorities" - deliberately expansive using "includes" not "means".

Judicial Evolution:

·       Rajasthan State Electricity Board v. Mohan Lal (1967): Electricity boards are "other authorities" under Article 12 despite commercial activities

·       Sukhdev Singh v. Bhagat Ram (1975): Statutory corporations (LIC, ONGC, IFC) are state instrumentalities

·       Ajay Hasia v. Khalid Mujib (1981): Six-fold test - government shareholding, financial control, monopoly status, state control, public importance, governmental function transfer

Impact on Employees: When public utility is classified as "State" under Article 12:

·       Employees can invoke fundamental rights (Articles 14, 15, 16, 19, 21)

·       Can file writ petitions under Articles 32 and 226

·       Protection against arbitrary action

·       Constitutional standards of fairness and transparency apply.

7. Criminal Liability of Public Utilities in India

Constitutional Basis: Many public utilities qualify as "State" under Article 12, subject to higher accountability standards.

Statutory Framework:

·       IPC Provisions: Section 409 (criminal breach of trust by public servants), Section 420 (cheating/fraud), Section 120B (criminal conspiracy)

·       Electricity Act 2003: Criminal penalties for theft, tampering

·       Environmental Laws: Water and Air Pollution Acts impose criminal liability

·       Prevention of Corruption Act: Targets bribery, misappropriation

Corporate Criminal Liability: Vicarious liability (corporation liable for employees' acts), Identification doctrine (senior management's acts attributed to corporation).

Areas of Liability: Corruption and financial crimes, environmental offenses, service-related crimes (meter tampering, theft), consumer protection violations.

Enforcement Challenges: Prior government sanction required (Section 197 CrPC, Section 19 Prevention of Corruption Act), balancing accountability with service continuity, procedural hurdles.

8. Liability of Public Utilities in Contract

Governing Law: Indian Contract Act 1872, Consumer Protection Laws.

Contractual Framework:

·       Public utilities operate through standard form contracts (adhesive, non-negotiable terms)

·       Terms must be reasonable, clearly communicated, not unfair

·       Consumers have right to information, safety, redressal

Liability Grounds:

·       Breach of contract (deficient service, non-performance)

·       Negligence in service provision

·       Violation of contract terms

Remedies: Compensatory damages, specific performance, refund, replacement depending on breach.

Case Law: Haryana State Electricity Board v. T.R. Poultry Farm (1996) - public utilities liable for negligence and breach.

Intersection with Other Laws: Tort law (duty of care, strict/absolute liability for hazardous activities), Consumer Protection Act (speedy redressal), Constitutional accountability (Article 12 instrumentalities).

9. Consumer Rights Against Public Utilities Under Consumer Protection Act

Six Consumer Rights (Section 2(9) CPA 2019):

1.       Right to Safety: Protection against hazardous goods/services

2.       Right to Information: Full disclosure about quality, quantity, price

3.       Right to Choose: Access to variety at competitive prices

4.      Right to Be Heard: Representation in consumer forums

5.       Right to Redressal: Compensation for grievances

6.      Right to Consumer Education: Awareness of rights and remedies

Three-Tier Redressal System:

·       District Forums: Claims up to ₹1 crore

·       State Commissions: Claims ₹1 crore to ₹10 crore

·       National Commission: Claims above ₹10 crore

Remedies Available: Compensation, replacement, repair, refund, discontinuation of unfair practices.

Applicability to Public Utilities: Electricity supply, water supply, telecom services, transportation all covered. NCDRC held electricity supply falls within CPA purview.

10. Criminal Liability of Public Utilities: Scope and Challenges

(Same as Question 7 - see above)

11. Public Utilities and Consumer Protection: Rights under Contract and Tort Law

Contract Law Dimension:

·       Standard form contracts with adhesive terms

·       Public utilities liable for breach, negligence, deficient service

·       Remedies: damages, specific performance, compensation

Tort Law Dimension:

·       Legal Personality: Public utility corporations are legal persons, can sue and be sued

·       Vicarious Liability: Liable for employees' acts within scope of employment

·       Negligence: Duty of care toward consumers (water contamination, electrical hazards)

·       Strict Liability: For inherently dangerous activities (Rylands v. Fletcher principle)

·       Absolute Liability: M.C. Mehta v. Union of India principle for hazardous industries

Key Cases:

·       Municipal Corporation of Delhi v. Subhagwanti (1966): Tortious liability established

·       Rajkot Municipal Corporation v. Manjulben (1997): Public utilities liable despite government status

·       Kasturi Lal v. State of UP (1965): Distinguished sovereign vs. non-sovereign functions

Consumer Protection Act Integration: Provides additional forum for speedy, inexpensive redressal against public utility deficiencies.

12. Administrative Authorities in Public Utilities: Structure and Subordinate Legislation

(Same as Question 2 - see above)

13. Tortious Liability of Public Utility Corporation

Principles of Liability:

1. Legal Personality: Public corporations have separate legal identity, can be sued like private entities.

2. Vicarious Liability: Liable for torts committed by employees within scope of employment.

3. Negligence in Services: Duty of care toward public - contaminated water, electricity hazards, inadequate safety measures.

4. Strict Liability: For inherently dangerous activities (gas supply, electricity transmission) - no need to prove negligence.

Key Case Laws:

·       Municipal Corporation of Delhi v. Subhagwanti (1966): MCD liable for death caused by municipal negligence

·       Rajkot Municipal Corporation v. Manjulben (1997): Corporation liable for negligence despite public status

·       Kasturi Lal v. State of UP (1965): Initially gave sovereign immunity, later distinguished

Sovereign vs. Non-Sovereign Functions: Sovereign functions (defense, law enforcement) immune from liability; Commercial/public utility services are non-sovereign, hence liable.

No Article 300 Immunity: Public corporations cannot claim constitutional immunity available to State.

14. Aims and Objects of Consumer Protection Act 1986

Primary Objectives: 

1. Protection Against Exploitation: Safeguard consumers from unfair trade practices, defective goods, deficient services.

2. Establishment of Redressal Mechanism: Three-tier system (District/State/National forums) for simple, inexpensive, speedy resolution.

3. Consumer Education and Awareness: Promote knowledge of rights, quality standards, legal remedies.

4. Prevention of Unfair Trade Practices: Regulate misleading advertisements, restrictive practices, harmful business conduct.

5. Universal Protection: Cover all goods and services (public and private sectors) except those specifically exempted.

Six Consumer Rights (codified in Act):

·       Right to safety

·       Right to information

·       Right to choice

·       Right to be heard

·       Right to seek redressal

·       Right to consumer education

Procedural Simplification: No lawyer required, complaint in any language, filing within 2 years, minimal documentation.

15. Salient Provisions of Indian Post and Telegraph Act in Globalization Era

Exclusive Government Privilege: Post Office Act 1898 and Telegraph Act 1885 grant government exclusive right over postal and telegraph services.

Key Provisions:

1. Interception Powers (Section 5(2) - most controversial):

·       Government can intercept, detain, or disclose messages

·       Grounds: sovereignty, state security, foreign relations, public order, preventing offenses

·       PUCL v. Union of India (1996): SC imposed safeguards - Home Secretary authorization, 2-month review, 6-month maximum, Review Committee oversight, destruction when unnecessary

2. Spectrum Management: Government authority over rates for international message transmission (Section 6A).

3. Secrecy and Censorship: Protection of communication secrecy, unauthorized access punishable.

4. Penal Provisions: Forgery of postal items, fraudulent use, misuse of infrastructure - imprisonment and fines.

Globalization Challenges:

·       Acts outdated for digital communication (mobile, internet, OTT platforms)

·       Government monopoly weakened by private telecom players

·       Privacy concerns with interception powers

·       Need for modern legislation (Telecommunications Act 2023 attempts modernization)

Public Utility Dimension: Postal/telegraph as essential services - government duty to guarantee universal access, reasonable pricing, grievance redressal.

16. Administrative Discretion in Quasi-Judicial Decisions in Public Utilities

Constitutional Foundation: Articles 14, 19, 21 (golden triangle) - Maneka Gandhi v. Union of India (1978) interconnected these rights; discretion must be fair, just, reasonable.

Definition: Power to decide between choices within legal limits; must be exercised in good faith, without malice, within statutory bounds, based on rational considerations, in harmony with public interest.

Quasi-Judicial Nature: Regulatory bodies (SERC, CERC, TRAI) function like courts within administrative law - hear parties, examine evidence, make binding decisions.

Regulatory Independence: 2024 SC judgment: SERCs not bound by government directives under Section 108 Electricity Act; can only be "guided" not "compelled".

Natural Justice Principles:

·       Audi Alteram Partem: Right to be heard

·       Nemo Judex in Sua Causa: Impartiality, no bias

Key Discretion Areas: Tariff determination (balancing consumer affordability and utility viability), power procurement oversight, licensing, dispute resolution, service quality standards.

Judicial Review Grounds:

·       Ultra vires (exceeded jurisdiction)

·       Failure to exercise discretion properly

·       Violation of natural justice

·       Manifest unreasonableness or arbitrariness

·       Mala fide (bad faith)

·       Consideration of irrelevant factors

Transparency Requirements: Reasoned decisions, public consultations, accessible records, RTI Act 2005 applicability.

17. Public Utility Employees' Constitutional Rights Under Article 12

(Same as Question 6 - see above)

18. Legislative Intent of Consumer Protection Act: Protection Against Statutory Bodies

Universal Legislative Intent: Parliament intended comprehensive protection for consumers against all entities providing services - private, public, or statutory bodies.

Statutory Definition of "Service": Consumer Protection Act 2019 defines "service" broadly to include any service made available to potential users, explicitly encompassing services by government authorities and statutory bodies.

Key Principle: Consumer protection is a benevolent social legislation - interpreted liberally in favor of consumers, regardless of service provider's status.

1993 Amendment: Explicitly included housing activities within "services," particularly targeting development authorities and government housing services.

No Exemption for Statutory Bodies: Unlike MRTP Act which exempted public utilities, Consumer Protection Act applies to all service providers including:

·       Electricity boards

·       Water supply corporations

·       Telecom authorities

·       Housing development authorities

·       Transport corporations

Judicial Affirmation: Courts consistently held that statutory bodies providing services to public for consideration are amenable to consumer protection jurisdiction.

2019 Act Expansion: Created Central Consumer Protection Authority (CCPA) with regulatory powers to investigate and penalize violations by any entity including statutory bodies.

19. Competition Act's Transformation: From Exemption to Inclusion of Public Utilities

MRTP Act Era (1969-2009): Section 3 broadly exempted government undertakings, government companies, statutory corporations - protective umbrella for PSUs and public utilities.

Rationale for Exemption: Post-independence command economy philosophy - state control over commanding heights, public utilities serve social objectives not profit, focus on preventing private monopolies.

Raghavan Committee Recommendations (2000): Revolutionary proposal - "State Monopolies, Government procurement and foreign companies should be subject to Competition Law"; marked decisive departure from MRTP approach.

Competition Act 2002 Paradigm Shift:

·       Section 32(a): Narrow exemption only for sovereign functions (atomic energy, currency, defense, space)

·       Public utilities now fully covered: Electricity, telecom, oil/gas, transport all subject to competition law

·       Principle of Competitive Neutrality: Level playing field between public and private enterprises

Landmark Judgments:

·       Coal India Limited v. Competition Commission of India (2023): Supreme Court held PSUs cannot claim blanket immunity; competitive neutrality and consumer welfare paramount

·       CCI actively applies competition law to public utilities - distinguishes inefficiency (not violation) from anti-competitive conduct (abuse of dominance)

Current Enforcement: CCI approves combinations involving PSUs (ONGC-NTPC Green joint venture), penalizes public entities for failing to notify acquisitions (NTPC penalty Rs. 40 million).

Transformation Impact: Balances social responsibilities with competitive disciplines; promotes efficiency while maintaining universal access objectives.

20. Sharing of Powers Between Union and States in Public Utilities

Constitutional Framework: Seventh Schedule (Articles 245-246) - three lists distributing powers.

Union List (8 major utilities):

·       Entry 22: Railways

·       Entry 31: Telecommunications

·       Entry 23: National Highways

·       Entry 29: Broadcasting

·       Entry 27: Shipping and Navigation

·       Entry 28: Ports

·       Entry 41: Atomic Energy

·       Entry 56: Civil Aviation

State List (6 utilities):

·       Entry 17: Water (supply, irrigation, drainage)

·       Entry 6: Public Health and Sanitation

·       Entry 5: Local Government

·       Entry 20: Gas and Gas Works

·       Entry 19: Urban Transport

·       Entry 9: Relief of Disabled and Unemployable

Concurrent List (4 utilities):

·       Entry 38: Electricity

·       Entry 25: Education

·       Entry 17A: Forests

·       Entry 23: Social Security

Electricity Sector Example (demonstrates concurrent governance):

·       Historical evolution: State Electricity Boards (1948) → Electricity Regulatory Commissions Act 1998 → Electricity Act 2003

·       CERC: Inter-state transmission, central generating companies, wholesale trading

·       SERCs: Intra-state generation, distribution tariffs, local matters

·       Balances national grid stability with state autonomy

73rd/74th Amendments (1992): Empowered local bodies (Panchayati Raj and Urban Local Bodies) for water supply, sanitation, urban planning - added third tier to utilities governance.

Residual Powers: Article 248 grants Union exclusive authority over matters not in Concurrent/State Lists.

Challenges: Competitive vs. cooperative federalism, regulatory coordination across tiers, fiscal federalism in infrastructure development, GST and uniform policy tensions.

21. Air India v. Nergesh Meerza Case: Gender Equality in Aviation

Facts: Female air hostesses challenged Air India regulations requiring retirement at age 35, termination upon marriage within 4 years of service, or first pregnancy. Male flight staff had retirement age of 58 with no such restrictions.

Issues: Violation of Articles 14 (equality), 15 (discrimination on sex), 16 (equality in public employment) of Constitution.

Regulations Challenged:

·       Regulation 46: Retirement age 35 for female hostesses (vs. 58 for male pursers), marriage within 4 years, first pregnancy

·       Regulation 47: Managing Director's discretion to extend retirement age (arbitrary)

Supreme Court Judgment (1981):

Struck Down:

·       Termination on first pregnancy (manifestly arbitrary)

·       Managing Director's unlimited discretion (violates Article 14)

·       Marriage within 4 years termination

Upheld (controversially):

·       Retirement age 35 for hostesses (justified on "special requirements")

·       But replaced pregnancy termination with "retirement after third child"

Significance:

·       First major case addressing sex discrimination under Article 15(1)

·       Established that only "sex" discrimination narrowly (not intersectional - age, marital status, pregnancy combined)

·       Limited interpretation of equality - court's retrograde approach criticized

·       Landmark despite shortcomings - opened gender equality jurisprudence in employment

·       Highlighted need for robust anti-discrimination framework

Contemporary Critique: Court failed to recognize intersectional discrimination; restrictive interpretation of Article 15(1) using "only on ground of sex" narrowly.

22. Right to Strike in Public Utilities: Legal Analysis

Constitutional Position: Right to strike not a fundamental right but recognized as statutory/legal right flowing from Article 19(1)(a) (freedom of speech) and 19(1)(b) (peaceful assembly) - strike as mode of "peaceful demonstration".

Industrial Disputes Act 1947 - Section 22 (Public Utility Services):

Pre-Strike Requirements:

1.       Notice 6 weeks before strike (not earlier than 6 weeks)

2.       Strike cannot begin until 14 days after notice

3.       Cannot strike before date specified in notice

4.      Cannot strike during conciliation proceedings and 7 days after conclusion

Public Utility Services Definition (Section 2(6)): Railways, postal/telegraph, electricity/water/gas supply, hospitals, transport, banking, etc..

Section 23 (General Prohibition):

·       No strike during conciliation before Board + 7 days after

·       No strike during proceedings before Labour Court/Tribunal

·       No strike during arbitration proceedings + 2 months after

·       No strike during settlement/award operation period

Section 24: Declares strikes illegal if in contravention of Sections 22 and 23.

Judicial Interpretation:

·       B.R. Singh v. Union of India: Trade Unions with sufficient membership can organize peaceful demonstrations including strikes

·       Kameshwar Prasad: Fundamental right to peaceful demonstration includes strike

·       Supreme Court held government employees' right to strike is statutory, not fundamental

International Obligation: India signatory to International Covenant on Economic, Social and Cultural Rights - Article 8(1)(d) recognizes right to strike; Article 2(1) requires legislative measures to achieve rights.

Rationale for Restrictions: Public utilities vital to community life - continuity essential, alternative arrangements needed during strikes.

23. Powers and Functions of Airports Authority of India

Establishment: Created by Airports Authority of India Act 1994 (April 1, 1995) by merging National Airports Authority and International Airports Authority; statutory body under Ministry of Civil Aviation.

Network: 137 airports - 34 international, 10 customs, 81 domestic, 23 civil enclaves at defense airfields.

Major Functions:

1. Airport Development and Management:

·       Planning, designing, construction, operation of airport facilities

·       Develop, maintain, upgrade civil aviation infrastructure

·       Establish and manage heliports and airports

2. Air Traffic Management (ATM):

·       Provide ATM services over Indian Territory airspace and adjacent oceanic areas

·       Manage and control air traffic, ensure safe operations

·       29 radar installations, 700 VOR/DVOR with DME, 52 runways with ILS

3. Communication Navigation Surveillance (CNS):

·       Establish, maintain navigational aids, communication equipment, beacons

·       Ground installations at all airports and 25 other locations

·       Automatic Message Switching System at 15 airports

4. Safety and Security:

·       Implement safety protocols, regular inspections

·       Ensure compliance with international aviation standards

·       Watch and ward arrangements

5. Airside Operations:

·       Aircraft movement, ground handling, runway maintenance

·       Taxiway operations, apron management, fueling services

6. Terminal Management:

·       Passenger facilitation, baggage handling, check-in

·       Security screening, airport facilities management

7. Infrastructure Development:

·       Modernize runways, taxiways, terminals

·       Navigational aids, communication systems enhancement

8. Regional Connectivity:

·       Develop airports in underserved/remote areas

·       Promote air travel, regional economic growth

9. Commercial Activities:

·       Establish warehouses, cargo complexes

·       Postal, money exchange, insurance, telephone facilities

·       Passenger transport facilities

·       Joint ventures for efficient discharge of functions

10. Consultancy Services:

·       Construction/management services in India and abroad

·       Training institutes and workshops

·       International cooperation with aviation bodies

Achievements: GAGAN Project (GPS augmentation), Performance-Based Navigation, Automatic Dependence Surveillance System.

24. Post and Telegraph Act in Globalization Era

(Same as Question 15 - see above)

25. Regulatory Policy for Electricity Authorities as Public Utilities

Legal Framework: Electricity Act 2003 (consolidated earlier laws) - unbundling of SEBs, competition promotion, power trading recognition.

Regulatory Bodies:

1. Central Electricity Regulatory Commission (CERC) (Section 76):

·       Regulates tariffs of central generating companies

·       Inter-state transmission regulation

·       Promotes competition and efficiency

·       Issues licenses, adjudicates disputes

·       Jurisdiction: National/inter-state

2. State Electricity Regulatory Commissions (SERCs):

·       Regulate intra-state generation, transmission, distribution

·       Determine state tariffs, issue licenses

·       Adjudicate disputes at state level

·       Jurisdiction: State/intra-state

3. Central Electricity Authority (CEA):

·       Technical advisory body (not regulatory)

·       Sets standards for construction, operation, maintenance

·       Policy advice to government

4. Appellate Tribunal for Electricity (APTEL):

·       Hears appeals against CERC/SERC decisions

·       Provides judicial oversight

Key Regulatory Principles:

1. Tariff Regulation: Balance affordability for consumers with financial viability of utilities; guided by National Electricity Policy and Tariff Policy.

2. Open Access: Non-discriminatory access to transmission/distribution networks; consumer choice of suppliers.

3. Consumer Protection: Ensure reliable supply, universal electrification, protect consumer interests.

4. Transparency and Predictability: Consistent processes, minimize regulatory risk, foster investor confidence.

5. Renewable Energy Promotion: Renewable Purchase Obligations (RPOs), penalties for non-compliance, climate goals.

Autonomy: CERC and SERCs are autonomous statutory bodies, function independently but guided by national policies.

Recent Reforms: Smart grid development, digitalization, indigenization; 2024 SC judgment affirmed regulatory independence from government directives.

26. Impact of Article 16 and Article 311 on Public Utilities

Article 16: Equality of Opportunity in Public Employment:

Guarantees: Equal opportunity for all citizens in public employment; prohibits discrimination on religion, race, caste, sex, descent, place of birth, residence.

Reservations: Allows reservations for backward classes (Article 16(4)).

Landmark Case - Indra Sawhney v. Union of India (1992):

·       Upheld reservations validity

·       "Creamy layer" exclusion required

·       Total reservation not to exceed 50% (except extraordinary circumstances)

·       Reservations confined to initial appointments, not promotions (later modified)

Impact on Public Utilities: Fair recruitment, diversity, inclusivity in hiring; reservation policies directly affect public utility employment practices.

Article 311: Safeguards to Civil Servants:

Protections:

1.       No dismissal/removal by authority subordinate to appointing authority

2.       No dismissal/removal without reasonable opportunity to be heard

3.       Proper inquiry required before disciplinary action

4.      Security of tenure for government employees

Exceptions (Article 311(2)):

·       Convicted on criminal charge

·       Inquiry not practicable (with reasons recorded)

·       State security at risk

Scope: Applies only to civil servants (government employees in public utilities), not to employees of statutory corporations or government companies.

Key Cases:

·       Parshotam Lal Dhingra v. Union of India (1958): Determined when termination is punitive (attracts Article 311)

·       State of UP v. Audh Narain Singh (1964): Even temporary employees in public utilities entitled to Article 311 protections if holding civil post

·       State of Punjab v. Kishan Dass (1971): Not every salary reduction is rank reduction under Article 311

Combined Impact on Public Utilities:

·       Article 16: Ensures fair, inclusive recruitment practices; social justice in employment

·       Article 311: Provides job security, protection from arbitrary action

·       Together promote efficiency, transparency, accountability in public utility workforce

·       Judicial review available for violations through courts/administrative tribunals

Summary for Quick Revision

Remember "CELRAS" Framework for Public Utilities Study:

C - Constitutional Framework (Articles 12, 16, 39, 311)

E - Evolution (Colonial → Post-Independence → Liberalization → Contemporary)

L - Legal Provisions (Acts: Electricity 2003, Telegraph 1885, Consumer Protection 2019, Competition 2002)

R - Regulatory Bodies (CERC/SERCs, TRAI, AERA, AAI, PNGRB)

A - Accountability (Criminal, Contractual, Tortious liability; Consumer Protection)

S - Structural Framework (Union-State-Local power distribution; Three-tier administration)

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