Misdeclaration Requires Intent and Illegal Gain Under Grid Code — (2026) INSC 515
The Punjab State Grid Code, 2013 requires a finding of intentional misdeclaration (gaming) with motive to make undue profit before penalty can be imposed.
Punjab State Power Corporation Limited v. Talwandi Sabo Power Limited — (2026) INSC 515Core Argument
The Punjab State Grid Code, 2013 requires a finding of intentional misdeclaration (gaming) with motive to make undue profit before penalty can be imposed. The demonstration notice did not specify a time limit, and the generating station demonstrated capacity within the same day. The APTEL correctly set aside the penalty.
Key Precedents
- TPDDL v. PPCL (Petition No. 199/MP/2019, CERC, 29.11.2023) — Held that misdeclaration of declared capability requires absence of adequate coal stock or plant shutdown/repair; mere failure to achieve declared capacity is not sufficient.
- PSEB v. CERC (Appeal No. 79 of 2007, APTEL, 11.12.2007) — Held that less than 1% deviation is within practical limits and does not justify an allegation of gaming.
- Excel Crop Care Ltd. v. CCI (2017) 8 SCC 47 — Held that where two reasonable interpretations are possible, the interpretation favouring the assessee should be adopted, especially for penal provisions.
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