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Argument Lab/For Petitioner/Demonstration of Declared Capacity Invites Strict Liability — (2026) INSC 515
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Demonstration of Declared Capacity Invites Strict Liability — (2026) INSC 515

Regulation 11.3.13 of the Punjab State Grid Code, 2013 imposes a strict liability penalty for failure to demonstrate declared capacity when asked by the SLDC.

Punjab State Power Corporation Limited v. Talwandi Sabo Power Limited — (2026) INSC 515

Core Argument

Regulation 11.3.13 of the Punjab State Grid Code, 2013 imposes a strict liability penalty for failure to demonstrate declared capacity when asked by the SLDC. No finding of mens rea or illegal enrichment is required. The demonstration must be achieved within the fourth time block from receipt of notice under Regulation 11.5(xi).

Key Precedents

  • Union of India v. Dharamendra Textile Processors (2008) 13 SCC 369 — Held that penalty arising from breach of civil obligation does not require proof of mens rea; the mere use of the word 'penalty' is not determinative of whether proceedings are criminal or quasi-criminal.
  • Chairman, SEBI v. Sri Ram Mutual Fund (2006) 5 SCC 361 — Held that mens rea is not a straitjacket formula; the language and scheme of the Act determine whether mens rea is required for penalty.

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