Here is a structured summary and key
points that address the broad topics related to Public
Utilities Law:
1. Definition, Privileges, and
Obligations of Public Utility Services
·
Definition: Public utility services are essential services linked to
daily life, provided primarily by the government or government-controlled
bodies (e.g., electricity, water supply, public transport, postal services,
telecommunications, health services, gas supply).
·
Privileges: Include legal protection (e.g., Essential Services
Maintenance Act), priority status in resources, subsidies, and government
ownership/control.
·
Obligations: Universal access to services,
continuity and regularity, reasonable pricing, quality service, and grievance
redressal mechanisms.
2. Administrative Authorities and Their
Structure
·
Defined
as government or government-controlled bodies responsible for implementing
policies, providing services, regulation, and decision-making.
·
Structured
on three levels: Central, State, and Local (district/local authorities).
·
Includes
autonomous and regulatory bodies like UGC, TRAI, SEBI, RBI.
3. Public Utilities under Article 12 of
the Indian Constitution — Are They “State”?
·
Public
utility services may be considered “State” under Article 12 if:
o Owned or controlled by the government.
o Financed or extensively regulated by
the government.
o Performing public functions.
·
Important
cases:
o R.D. Shetty v. International Airport
Authority (1979)
o Ajay Hasia v. Khalid Mujib (1981)
o Sukhdev Singh v. Bhagat Ram (1975)
o Zee Telefilms Ltd. v. Union of India
(2005)
·
Such
bodies are accountable for fundamental rights compliance, and writ petitions
can be filed against them.
4. Consumer Rights Under Consumer
Protection Act
·
Consumer
defined as any person who buys goods or hires services for consideration.
·
Rights
include: right to safety, information, choice, redressal, consumer education,
and protection against unfair trade practices.
·
Consumer
Protection Act, 2019 modernizes the framework and includes statutory bodies and
public utilities as service providers accountable to consumers.
5. Regulating Public Utilities
·
Public
utilities are regulated through laws like Electricity Act, 2003; Telecom
Regulatory Authority of India Act; Indian Telegraph Act, etc.
·
Regulatory
Commissions (CERC, MERC, TRAI) oversee pricing, service standards, grievance
redressal.
·
Government
and Parliament maintain parliamentary control through questions, debates,
committees (PAC, COPU).
6. Tortious Liability of Public
Utilities
·
Public
corporations are legal persons and liable for torts committed by their
employees during employment (vicarious liability).
·
They have
immunity only in sovereign functions.
·
Strict
and absolute liability doctrines apply depending on the case (e.g., MC Mehta v.
Union of India establishes absolute liability for hazardous activities).
7. Strike in Public Utility Services
·
Strikes
are allowed but highly regulated under Industrial Disputes Act, 1947.
·
Prior
notice and conciliation are mandatory.
·
Illegal
strikes attract penalties; government employees generally do not have the right
to strike.
8. Growth and Evolution of Public
Utility Services and Legislations
·
Originating
from basic societal needs and industrial revolution.
·
State
involvement grew post-independence with public sector undertakings (PSUs).
·
Legislative
evolution from Indian Telegraph Act, Railway Act to modern laws like
Electricity Act 2003.
·
Liberalization
from 1991 introduced private participation and regulatory reforms.
9. Parliamentary Control and Government
Role
·
Ensures
accountability, efficiency, and protection of public interest through
legislative oversight, committees, financial control, and question hours.
·
Government
monopoly in critical utilities justified by public welfare, natural monopoly
characteristics, affordability, and regional balance requirements.
10. Significant Judicial
Interpretations and Landmark Cases
·
Ajay
Hasia (1981): Instrumentality of State test for Article 12.
·
Sukhdev
Singh (1975): Public corporations as state and fundamental rights
applicability.
·
MC Mehta
(1987): Absolute liability on public enterprises for hazardous activities.
·
Air
Hostess Case (Air India v. Nergesh Meerza, 1981): Gender discrimination in
public utilities employment invalidated.
·
Indra
Sawhney (1992): Reservation and equality in public employment.
·
Others
relating to administrative discretion, right to equality, tortious liabilities,
consumer rights, and public utility definitions.
