State Govt Can Give Exemptions Or Relaxations To Central Electricity Authority (Measures Relating To Safety And Electric Supply) Regulations 2010 : Supreme Court

In a judgment giving relief to thousands of employees of the Kerala State Electricity Board Ltd (KSEBL), the Supreme Court has upheld a Kerala Government Order dated 13.02.2019, which granted exemptions to several existing Board employees from the qualifications under the the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010.However, the Supreme Court upheld the view of the Kerala High Court that the said Government Order can be applied only to the existing employees and not to employees appointed after 31.10.2013.The Supreme Court opined that 'deviation' in Regulation 116 of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010, which permits the Central and State Government to deviate with respect to matters covered by the Regulation of 2010 would amount to either "exemption" or "relaxation". A Bench comprising Justices L. Nageswara Rao and B.R. Gavai dismissed appeal filed assailing order of the Division Bench of Kerala High Court, which, inter alia, upheld the validity of Regulation 116 of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 ("Regulations"). "116. Deviations. -(1) The Central Government or the State Government, as the case may. be, by order in writing, allow deviations in respect of matters referred in these regulations except regulation 30.(2) The Electrical Inspector or the inspector of mines may, by order in writing, allow deviations in respect of matters referred in regulations 12 to 17, 28, 35(2)(3) and (5), 36(3), 37(1) to (iv), 41(xii), 43, 44(2), 46, 52 to 54, 57 to 61, 65, 72, 74, 78 to 91,102,107(6), (8) and (10) and 114Explanation- Every order allowing the deviations by the Electrical Inspector or the Inspector of Mines under sub-regulation (2) shall be placed before the Central or State Government which may disallow or revise such deviations."Background On 31.10.2013, the Government of Kerala notified a transfer scheme revesting all the functions, properties, interests, rights, obligations and liabilities than was with Kerala State Electricity Board ("KSEB"), in Kerala State Electricity Board Limited ("KSEBL") a company fully owned by the Government of Kerala. A tripartite agreement was entered into among the State of Kerala, KSEBL and Unions and Associations of KSEB workers to assure them that the terms and conditions of service shall continue to be regulated by the extant regulations. On 13.02.2019, by a Government Order ("GO") exemption from acquiring qualifications stipulated under Regulations 6 and 7 of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 ("Regulations") was granted to the erstwhile employees. A Writ Petition was filed before the Kerala High Court challenging the vires of Regulation 116 of the Regulations. The petitioner sought declaration that the State had no power to deviate from qualifications prescribed in Regulation 6 and 7. The GO dated 13.02.2019 was also challenged for being arbitrary, illegal, unreasonable and without jurisdiction. The Single Judge passed order in favour of the writ petitioner. In appeal, the Division Bench held that Regulation 116 was neither ultra vires the Central Electricity Authority under the Electricity Act, 2003 ("Act") nor manifestly arbitrary. It was of the view that exemption from the applicability of Regulation 6 and 7 could have only been granted to persons employed with KSEBL on the date of formulation of the transfer scheme and those employed after 31.10.2013 were not entitled to such an exemption. Consequently, the GO dated 13.02.2019 was set aside to the extent it granted exemption even to employees who entered after 31.10.2013. Contentions raised by the appellants Senior Advocate, Mr. V. Chitambaresh appearing on behalf of some of the appellants argued that in view of Regulation 116, which permitted deviation from the Regulations, the Government could not have granted exemption because "deviation" cannot be read as "exemption". To substantiate his argument he relied on R.B.I v. Peerless General Finance And Investment Co. Ltd. (1987) 1 SCC 424, M/s. Dhanrajamal Gobindram v. M/s. Shamji Kalidas And Co. (1961) 2 SCR 1020 and Glynn v. Margetson And Co. (1893) A.C. 351. Advocate, Mr. K. Rajeev, appearing for other appellants submitted that the transfer scheme was framed in 2013, after the Safety Regulations came into force in 2010 and that the Single Judge of the High Court correctly held that clause 2(c) of the tripartite agreement was ultra vires the Electricity Act, 2003. Contentions raised by the respondents Additional Solicitor General, Ms. Aishwarya Bhati, appearing on behalf of the Central Electricity Authority submitted that the authority had no role in the appeals when the appellants had not made any submissions qua the vires...

State Govt Can Give Exemptions Or Relaxations To Central Electricity Authority (Measures Relating To Safety And Electric Supply) Regulations 2010 : Supreme Court

Sohini Chowdhury

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