Supreme Court Annual Digest 2025 - Administrative Law

Administrative Law Administrative / Adjudicatory / Legislative functions - A perusal of the provisions laying down the functions of the Central Electricity Regulatory Commission (the “CERC”) indicates that the statutory authority is enjoined with the task of regulation as well as adjudication of several aspects of the generation, transmission and distribution of electricity. Section 79 of the Electricity Act, 2003 enumerates the functions of the CERC which includes the dual functions of regulation and adjudication. Section 178, on the other hand, empowers the CERC to enact regulations by notification thereby delegating to the body, the power of legislating statutory regulations under the Act, 2003. The aforesaid two provisions indicate that the CERC functions as both, decision-making and regulation-making authority under Sections 79 and 178 respectively. However, while the authority exercising both these functions is one and the same, it is a settled position of law that the functions by themselves are separate and distinct. The functions under Section 79 are administrative or adjudicatory whereas those under Section 178 are legislative. (Para 37, 38) Power Grid Corporation v. Madhya Pradesh Power Transmission Company, 2025 LiveLaw (SC) 583 : 2025 INSC 697 Administrative Action - Judicial Review of - Statutory Authorities - Interplay with IBC Moratorium - Held that the constitutional jurisdiction of the High Court under Article 226 is not curtailed by Section 14 of the IBC - The High Court is competent to entertain a writ petition and direct statutory authorities to process a redevelopment proposal in favour of a new developer, even during the pendency of CIRP - Such directions fall in the public law domain and do not encroach upon the NCLT's jurisdiction or offend the moratorium, especially where the corporate debtor has no subsisting contractual or proprietary interest in the project. [Relied on Gujarat Urja Vikas Nigam Ltd v. Amit Gupta and others 2021 7 SCC 209; Embassy Property Developments Pvt. Ltd. v. State of Karnataka and others 2020 13 SCC 308; Para 17, 20] A.A. Estates v. Kher Nagar Sukhsadan Co-Operative Housing Society Ltd., 2025 LiveLaw (SC) 1151 : 2025 INSC 1366 Administrative Action – Public Tenders – Arbitrariness – Held, even in the absence of contractual rights, the State's administrative discretion in rescinding or cancelling an LoI is subject to constitutional discipline, particularly the requirement that State action must not be arbitrary, unreasonable, or actuated by mala fides- The scope of judicial review in contractual matters is confined to testing administrative action against the touchstones of illegality, irrationality, mala fides, and procedural impropriety, focusing on the decision-making process, not the decision itself- Courts should not interfere unless the State's action is "palpably unreasonable or absolutely irrational and bereft of any principle"- Reasons for Cancellation: Administrative orders must be read in light of the concomitant record, and reasons need not be stated in haec verba in the communication, so long as they can be discerned from the file and are not post-hoc justifications- The legitimacy of administrative reasoning must be tested with reference to the material that existed at the time the decision was made. [Relied on Tata Cellular v. Union of India 1994 6 SCC 651] State of Himachal Pradesh v. OASYS Cybernatics, 2025 LiveLaw (SC) 1142 : 2025 INSC 1355 Administrative Bodies - The significance of creation and establishment of these statutory and administrative bodies is not difficult to conceive. If these institutions and bodies work effectively and efficiently, it is but natural that the purpose and object of the legislation will be achieved in a substantial measure. It is, therefore, necessary to ensure that in the functioning of these bodies, there is efficiency in administration, expertise through composition, integrity through human resources, transparency and accountability, and response-ability through regular review, audits and assessments. While exercising judicial review of administrative action in the context of Statutes, laws, rules or policies establishing statutory or administrative bodies to implement the provisions of the Act or its policy, the first duty of constitutional courts is to ensure that these bodies are in a position to effectively and efficiently perform their obligations. Lifecare Innovations v. Union of India, 2025 LiveLaw (SC) 256 : 2025 INSC 269 Administrative Function – Judicial Review - The Impugned Report recommending the expulsion of the Petitioner was made by the Ethics Committee in the discharge of its administrative functions. These functions have been assigned in the Rules framed by the State Legislature under Article 208 of the Constitution. The Rules so enacted govern the internal functioning, discipline of the ...

Supreme Court Annual Digest 2025 - Administrative Law

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