SC Warns Punjab Over Non-Compliance of 15-Year-Old Decree on Power Dues to Himachal
UPSC / SSC current affairs note · Polity
Why in news
The Supreme Court has warned Punjab for defying a 15-year-old decree on Bhakra Nangal and Beas power dues owed to Himachal Pradesh. The Attorney General proposed a cashless settlement, which Himachal and Haryana accepted, but Punjab objected. The court has given Punjab two weeks to reconsider, with a final hearing on August 12.
Background
The dispute dates back to the division of Punjab in 1966, when assets of the Bhakra Nangal and Beas projects were to be shared. Himachal filed an original suit in the Supreme Court 30 years ago, and the court passed a decree in 2011 in favor of Himachal. Punjab has been resisting implementation, leading to the current contempt-like proceedings.
Key facts
The Supreme Court bench, led by CJI Surya Kant, warned Punjab for defying a 15-year-old decree on power dues to Himachal Pradesh.
The decree relates to settlement of Bhakra Nangal and Beas power dues since 1966 in favor of Himachal Pradesh.
Attorney General R Venkataramani proposed a cashless settlement, with claims adjusted through in-kind energy arrears and set-off of capital cost liability.
Himachal and Haryana agreed to the AG's proposal, but Punjab raised objections, citing substantial losses.
The court stated that if Punjab does not settle, it will implement the decree with interest from 2011.
The matter is posted for hearing on August 12.
The AG's proposal includes Punjab and Haryana providing 13,066 MU of energy arrears to HP at 871 MU per annum over 15 lean seasons (Oct-March).
The court observed, 'The state has a habit of defying decrees and old habits die hard.'
Prelims pointers
- Supreme Court original suit jurisdiction under Article 131 for inter-state disputes.
- Bhakra Nangal and Beas projects are multipurpose river valley projects on the Sutlej and Beas rivers.
- Punjab Reorganisation Act, 1966 led to the division of Punjab and creation of Haryana and Himachal Pradesh.
- Comptroller and Auditor General (CAG) examined records for independent determination of capital cost liability.
- The decree was passed in 2011 on an original suit filed by Himachal Pradesh.
- The bench included CJI Surya Kant, Justices Joymalya Bagchi, and V Mohana.
- Senior advocates Kapil Sibal (Himachal), Balbir Singh (Haryana), and Nidhesh Gupta (Punjab) appeared.
- Cashless settlement involves in-kind settlement of energy arrears.
Mains angles
- Discuss the role of the Supreme Court in resolving inter-state water and power disputes under Article 131.
- Critically examine the challenges in implementing judicial decrees in federal structures, with reference to Punjab's resistance.
- Analyze the significance of the Punjab Reorganisation Act, 1966 in creating long-standing inter-state disputes.
- Evaluate the effectiveness of alternative dispute resolution mechanisms like the Attorney General's proposal in settling inter-state disputes.