Vested right of appeal survives repeal, while regulatory directions for tariff compliance remain within commission powers.

A pending appeal is governed by the law in force when proceedings commenced, because the right of appeal is a vested substantive right that is not taken away by repeal absent express words or necessary implication. On that basis, the High Court's jurisdiction over appeals filed under the repealed Electricity Regulatory Commissions Act, 1998 was preserved after the Electricity Act, 2003 came into force. The Commission's regulatory powers were also held wide enough to support directions ancillary to tariff implementation and compliance monitoring, since they furthered efficiency and economy in the electricity sector. The penalty, however, was not sustained on the facts because substantial compliance had been shown.

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Issues: (i) Whether the High Court retained jurisdiction to hear appeals filed under the repealed Electricity Regulatory Commissions Act, 1998 after the coming into force of the Electricity Act, 2003. (ii) Whether the State Commission had authority to issue consequential directions and impose penalty in relation to tariff fixation and compliance monitoring.

Issue (i): Whether the High Court retained jurisdiction to hear appeals filed under the repealed Electricity Regulatory Commissions Act, 1998 after the coming into force of the Electricity Act, 2003.

Analysis: The right of appeal is a vested substantive right that accrues when proceedings commence and ordinarily continues despite repeal unless the later enactment shows a contrary intention by express words or necessary implication. The 2003 Act created a new appellate forum, but it did not contain any express transfer provision for pending appeals or any clear legislative mandate extinguishing the pending forum of appeal. The repeal-and-saving clause, read with the General Clauses Act, preserved the existing right and forum for pending matters.

Conclusion: The High Court's jurisdiction to hear the pending appeals was preserved. This issue is decided in favour of the Commission.

Issue (ii): Whether the State Commission had authority to issue consequential directions and impose penalty in relation to tariff fixation and compliance monitoring.

Analysis: The Commission's powers under the 1998 Act were not confined to tariff fixation alone. The power to promote competition, efficiency and economy in the electricity industry was wide enough to support directions connected with tariff implementation and regulatory compliance. The directions issued were treated as within that statutory range. However, on the facts, the Board had substantially complied with the directions, and the punitive order was not justified. The later regime under the 2003 Act also showed that the Commission's functions were statutorily regulated without the need for a separate notification.

Conclusion: The Commission had power to issue the directions, but the penalty was unwarranted on the facts. This issue is partly in favour of the Commission and partly in favour of the Board.

Final Conclusion: The pending appeals were maintainable before the High Court, the Commission's regulatory directions were within jurisdiction, but the penalty order could not be sustained on the facts.

Ratio Decidendi: A pending appeal is governed by the law in force when proceedings commenced unless the repealing statute clearly evinces an intention to take away the vested right of appeal or forum, and a regulatory commission may issue directions ancillary to statutory tariff functions where they fall within the object of promoting efficiency and economy.

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