The Supreme Court has ruled that it is not "mandatory" to appoint a high court judge as the chairperson of State Electricity Regulatory Commission (SERC), which determines power tariff, in the states.
The path-breaking verdict put to rest the vexatious question that had come to light due to conflicting judgements of Gujarat and the Madras high courts on the interpretation of a provision of the Electricity Act on the appointment of the Chairperson of the State Electricity Regulatory Commission.
Section 84 (2) of the Act said that the state government "may" appoint "any person as the chairperson from amongst the persons, who is, or has been, a Judge of the High Court".
The Madras High Court, on February 7, 2014, held that that there was no such mandatory requirement to appoint a high court judge as the chairperson of Tamil Nadu State Electricity Commission. However, there was an option to appoint a judge, it had said.
On the contrary, the Gujarat High Court, in a similar case, on October 8, 2015, held that it was mandatory to appoint a high court judge as the chairperson of Gujarat State Regulatory Commission.
Settling the issue emanating due to divergent opinions on the law, a bench of justices J Chelameswar and Sanjay Kishan Kaul said, "Section 84(2) of the said Act is only an enabling provision to appoint a High Court Judge as a Chairperson of the State Commission of the said Act and it is not mandatory to do so."
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