Subordinate legislation under electricity law was not appealable, and tribunal supervisory powers could not invalidate regulations.

A regulation framed by the Central Electricity Regulatory Commission under Section 178 is subordinate legislation and not an appealable order under Section 111, so the Appellate Tribunal for Electricity lacked jurisdiction to test its validity. Section 121 confers only supervisory power to issue directions for statutory performance and does not create a judicial review power over delegated legislation, so it could not be used to invalidate the regulations. The Commission was competent to cap trading margin by regulation under Section 178, as the Act permits general regulatory prescriptions beyond individual orders under Section 79(1)(j). The challenge therefore had to be pursued through constitutional judicial review, not before the Tribunal.

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Issues: (i) Whether the Appellate Tribunal for Electricity had jurisdiction under Section 111 of the Electricity Act, 2003 to examine the validity of regulations framed by the Central Electricity Regulatory Commission under Section 178; (ii) whether Section 121 of the Electricity Act, 2003 conferred power of judicial review on the Appellate Tribunal; and (iii) whether the Central Electricity Regulatory Commission could cap trading margin by regulation under Section 178 rather than only by an order under Section 79(1)(j).

Issue (i): Whether the Appellate Tribunal for Electricity had jurisdiction under Section 111 of the Electricity Act, 2003 to examine the validity of regulations framed by the Central Electricity Regulatory Commission under Section 178

Analysis: Section 111 provides an appeal against orders of the Appropriate Commission, whereas a regulation framed under Section 178 is a form of subordinate legislation. The statutory scheme distinguishes between the Commission's decision-making functions under Section 79 and its regulation-making power under Section 178. A regulation of general application, especially one altering the framework of existing and future contractual relations, is not treated as an appealable order under Section 111.

Conclusion: The Appellate Tribunal had no jurisdiction under Section 111 to test the validity of regulations framed under Section 178.

Issue (ii): Whether Section 121 of the Electricity Act, 2003 conferred power of judicial review on the Appellate Tribunal

Analysis: Section 121 empowers the Appellate Tribunal to issue orders, instructions or directions to the Commission for performance of statutory functions. That power is supervisory and administrative in character. It does not amount to an express grant of judicial review over delegated legislation, and therefore cannot be used to invalidate regulations framed by the Commission.

Conclusion: Section 121 did not confer judicial review jurisdiction on the Appellate Tribunal.

Issue (iii): Whether the Central Electricity Regulatory Commission could cap trading margin by regulation under Section 178 rather than only by an order under Section 79(1)(j)

Analysis: The statutory scheme permits the Commission to act both by orders in its regulatory functions and by regulations in its legislative capacity. Section 79(1)(j) deals with the function of fixing trading margin, but Section 178 enables the Commission to frame regulations of general application to carry out the Act. The impugned cap on trading margin was held to be a matter capable of being regulated across the board by subordinate legislation under Section 178.

Conclusion: The Commission was competent to cap trading margin by regulation under Section 178.

Final Conclusion: The challenge to the validity of the trading margin regulations could not be entertained by the Appellate Tribunal, and the proper remedy lay in constitutional judicial review.

Ratio Decidendi: A regulation made under a delegated legislative power is not an appealable order under Section 111, and absent an express statutory grant, a tribunal's supervisory power under Section 121 cannot be treated as a power to invalidate subordinate legislation.

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