Tuesday, 16 December 2025

LLM Notes: Comprehensive LLM Revision Guide on Public Utility Laws

 CELRAS Framework - Master Study Structure

C - Constitutional Framework

Key Articles & Doctrines: - Article 12: State definition (expansive - includes all local/other authorities) - Ajay Hasia 6-fold Test: shareholding, financial control, monopoly, state control, public importance, governmental function transfer - Article 39(b)(c): Directive Principles (resources for common good) - Article 14: Equality, Article 16: Equal opportunity in employment, Article 311: Civil servant protections

E - Evolution Timeline

Critical Phases to Remember: - Colonial (1850s-1947): Indian Electricity Act 1910, Railway Act 1890, Government of India Act 1935 - Post-Independence (1947-1991): Industrial Policy 1956 (public sector utilities), State Electricity Boards 1948, Constitution 1950 - Liberalization (1991-2003): 73rd/74th Amendments, regulatory commissions established - Contemporary (2003-Present): Electricity Act 2003, Telecommunications Act 2023, unbundling & competition

L - Legal Provisions & Statutes

Act

Key Section/Provision

Application

Electricity Act 2003

Sections 76-80 (CERC/SERC)

Tariff regulation, open access, competition

Competition Act 2002

Section 32(a)

Narrowed exemptions; PSUs now subject to competition law

Consumer Protection Act 2019

Sections 2(9), 66-90

Six consumer rights; three-tier redressal system

Industrial Disputes Act 1947

Sections 22-24

Strike restrictions in public utilities (6-week notice)

IPC 1860

Sections 409, 420, 120B

Criminal breach of trust, fraud, conspiracy by utilities

Telegraph Act 1885

Section 5(2)

Government interception powers (PUCL safeguards)

R - Regulatory Bodies & Administration

Three-Tier Structure: - Central: CERC (electricity), TRAI (telecom), FSSAI, AERA (airports), AAI (civil aviation) - State: SERCs, MWRRA, water boards - Local: Municipal corporations, district authorities

Administrative Discretion Limits (Article 14 + Maneka Gandhi): - Must exercise in good faith, within statutory bounds, without malice, based on rational considerations - Natural justice: Audi alteram partem, nemo judex in sua causa - Judicial review grounds: Ultra vires, arbitrariness, mala fide, irrelevant considerations

A - Accountability & Liability

Four Liability Pillars:

1.          Criminal Liability: Sections 409 (breach of trust), 420 (fraud), 197 CrPC (prior sanction required for prosecution)

2.          Contractual Liability:

            Breach of adhesive contract terms

            Deficient service claims

            Remedies: damages, specific performance, compensation

3.          Tortious Liability:

            Legal personality: Can be sued like private entities

            Vicarious liability: For employee actions within scope

            Negligence: Duty of care (contaminated water, electrical hazards)

            Strict liability: Inherently dangerous activities (electricity, gas)

            Landmark: Municipal Corporation Delhi v. Subhagwanti (1966), Rajkot v. Manjulben (1997)

4.          Consumer Protection Liability:

            Six rights: Safety, information, choice, being heard, redressal, education- SICHER

            Three forums: District (₹0-1 crore), State (₹1-10 crore), National (₹10+ crore)

            CCPA (2019): New enforcement authority for public utilities

S - Structural Power Distribution

Constitutional Allocation (Seventh Schedule): - Union List: Railways (22), Telecom (31), Shipping (27), Aviation (56), Atomic energy (41) - State List: Water (17), Gas (20), Urban transport (19), Health (6) - Concurrent List: Electricity (38), Education (25), Social security (23)

Key Tension: MRTP → Competition Transformation - MRTP 1969: Blanket exemption for PSUs (Section 3) - Competition Act 2002: Narrow exemptions only for sovereign functions - Coal India v. CCI (2023): No blanket immunity; competitive neutrality principle applies

Quick Revision Mnemonics

“NAP-SLI-CR” - Exam Answer Framework: - Nature of utility (private/public/statutory) - Article 12 applicability → constitutional protections - Pertinent statute (which Act governs?) - Structure of regulation (CERC/SERC/TRAI applicable?) - Liability dimension (criminal/contract/tort/consumer?) - Implication for employees/consumers/public - Common case law (landmark judgments) - Remedies available

Critical Case Law Shortcuts

Case

Year

Principle

Cite In

Rajasthan State EB v. Mohan Lal

1967

Electricity boards are “State” under Art.12

Art.12 questions

Kasturi Lal v. State UP

1965

Non-sovereign functions liable (tortious)

Liability questions

PUCL v. Union of India

1996

Telegraph interception needs safeguards

Telegraph/privacy issues

Indra Sawhney v. Union

1992

Reservations + creamy layer + 50% ceiling

Article 16 employment

Coal India v. CCI

2023

PSUs subject to competition law

Competition Act application

Air India v. Nergesh Meerza

1981

Gender discrimination in employment

Article 15 violations

Exam Problem-Solving Checklist

Define: What utility? Public or private? Statutory body? ✓ Jurisdiction: Which regulatory authority? Concurrent/Union/State list? ✓ Liability: Criminal → sanction required? Contractual → terms reasonable? Tortious → negligence/strict? Consumer → correct forum? ✓ Rights: Employees → Art.12/Art.16/Art.311? Consumers → six CPA rights? Public → universal service obligation? ✓ Defenses: Is it sovereign function? Any statutory exemption? Good faith exercise of discretion? ✓ Remedies: Compensation? Injunction? Regulatory action? Criminal prosecution?

Last-Minute Topics to Revise

1.          Art.12 Evolution: Sukhdev (statutory corps), Rajasthan SEB (commercial bodies as State)

2.          Regulatory Independence: SERCs not bound by government directives (2024 SC)

3.          Consumer Protection: Statutory bodies NOT exempted (1993 amendment), CCPA powers

4.          Strike Rights: IDA 1947 Section 22 restrictions (6-week notice, 14-day cooling period)

5.          Natural Monopoly Justification: Economies of scale + universal service obligation

6.          Competition Law Shift: Coal India principle → PSUs must compete fairly

7.          Tortious Liability: No Article 300 immunity for commercial functions

8.          Criminal Sanction: Section 197 CrPC requirement for prosecution


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