In Suo-Moto action under Section 121 of the EA vs Forum of Regulators & Ors. on 27 May 2026

ORDER

IA No. 899 of 2026 (for Modification)

1. This application has been filed by the two Discoms operating in NCT of Delhi i.e. BSES Rajdhani Power Limited (Respondent No. 32) and BSES Yamuna Power Limited (Respondent No. 33) with the following prayer:- (a) Pass an Order correcting the error/accidental slip in Para 39 of the Order dated 20.04.2026 in OP No. 1 of 2025 by substituting the passage "... quash the approval to such audit accorded by the Ld. Governor of Delhi vide communication dt. 05/03/2026" with “….. quash DERC's initiation of the CAG audit and DERC's request to the CAG and GoNCTD and other consequential actions taken in this regard”

(b) Pass such order(s) as this Hon'ble Tribunal may deem fit and proper in facts and circumstances of the present case.

2. We have heard Mr. Amit Kapur, Learned Counsel for the Applicants as well as Mr. B.P. Patil, Learned Senior Counsel along with Ms. Abiha Ziadi, Learned Counsel for Delhi Electricity Regulatory Commission (DERC).

3. At the outset, we find it necessary to record with utmost dismay that the wisdom of these two Delhi Discoms in filing this instant application is not discernible. Even though the application has been captioned to be under Section 120 of the Electricity Act, 2003 read with Section 152 of the code of Civil Procedure, 1908 as well as Rule 30 of Appellate Tribunal for Electricity (Procedure, Form Fee and Record of Proceedings) Rules, 2007 for correction in the order dated 20th April, 2026 with the prayer to correct so called error/ accidental slips in para 39 of the said order passed in this Original Petition No. 1 of 2025 yet it is manifest from the language used in the body of the application as well as in prayer clause, which has been reproduced hereinabove, that the applicants want us to replace and substitute our decision/conclusion in para 39 of the said order with the decision/conclusion formulated by these Discoms as per their own wisdom. Therefore, manifestly the application is not for correction of any inadvertent error or accidental slip in para 39 of the said order dated 20th April, 2026 but actually for setting aside our such decision in para 39 of the order and substituting it with an altogether different decision as intended by the applicants. The applications, thus, merit dismissal on this very score for the reason that it is not for a party to the proceedings to advise or dictate to the Bench as to what ought to be the decision of the Bench and how the same ought to be worded. In case a party is not satisfied with the order passed by this Tribunal and the directions issued therein, it may have recourse

available to it under the Electricity Act, 2003. Such party cannot be heard to say that since the order of the Tribunal is not worded in the manner as the party thinks it ought to be and cannot be permitted to seek setting aside of such order in the grab of an application for correction of errors/accidental slips.

4. For the sake of convenience, we may reproduce herein the paragraph No. 39 of order dated 20th April, 2026 passed by us in the original petition with regards to the Delhi Electricity Regulatory Commission:-

39. Hence, for these reasons we are unable sustain the action of DERC in entrusting the strict and intensive audit of the Delhi discoms as per the RA judgement dt. 06/08/2025 of the Hon’ble Supreme Court to CAG as the same is in contravention of the statutory provisions namely section 20 of the CAG Act. We, therefore, uphold the objection raised to such audit by the discoms and quash the approval to such audit accorded by the Lt. Governor of Delhi vide communication dt. 05/03/2026.”

5. Upon reading this paragraph along with the discussion contained in previous paragraphs of the order, it is evident that quashing of the approval accorded by Lt. Governor of Delhi to entrust the strict and intensive audit of Delhi Discoms to CAG vide communication dated 5th March, 2026, is not a consequence of any inadvertent error or accidental slip as sought to be projected by the Delhi Discoms but conscious, considered and reasoned

decision of this Tribunal. We were mindful of the fact that mere initiation of such an audit by the Delhi Commission does not call for any interference from this Tribunal for the reason that the Lt. Governor of Delhi may or may not accord his approval to such an audit. In case the Lt. Governor did not approve such an audit of the Delhi Discoms that would have been end of it. It is only when the Lt. Governor accorded his approval to such an audit vide communication dated 5th March, 2026 that this Tribunal found reasons and ground to take cognizance of the same and pass appropriate orders in this regard. We make it clear that in case the communication dated 5th March, 2026 issued by the office of Lt. Governor of Delhi thereby conveying his approval to CAG audit of the Delhi Discoms as sought for by the Delhi Commission, would not have been brought to our notice, we would not have entertained the objection on behalf of Delhi Discoms for initiation of such an audit by Delhi Commission and would not have passed any order at all.

6. Hence, in our opinion, the instant application filed by the two Delhi Discoms is absolutely mis-conceived and devoid of merit. The same is hereby dismissed. IA No. 1041 of 2026 (for Direction)

7. In this application, the two Delhi Discoms namely BSES Rajdhani Power Ltd. & BSES Yamuna Power Ltd. have prayed as under :-

“(a) Direct Ld. DERC to initiate liquidation of Applicants’ RA with carrying cost as per RA judgement in terms of the Appellants’ letter dated 20.03.2026 with the revised carrying cost computation as on 12.05.2026 annexed as Annexures B (colly. ) and D hereto

(b) Pass such further or other orders as this Hon’ble Tribunal may deem fit and proper in the interests of justice and equity.”

8. We may note that vide order dated 20th April, 2026 passed in this petition, this Tribunal rejected the request of Delhi Commission for extension of time to commence liquidation of regulatory assets from 01.07.2026 and directed the Commission to commence the liquidation within three weeks from the date of the order.

9. Three weeks, as given to the Commission for commencement of the liquidation of regulatory assets, have already expired on 11.05.2026 but, concededly, the liquidation has yet not begun.

10. Learned Counsel for the applicants/Delhi Discoms would submit that despite clear directions of this Tribunal in this regard, the Commission is showing recalcitrance and defiance of these directions by delaying the liquidation process without any cogent reason.

11. We do find force in the submissions of the Learned Counsel for the applicants but since, in a separate order of even date passed in Review Petition No. 8 of 2026 filed by the Commission, we have directed the

Commission to begin the liquidation of regulatory assets w.e.f. 16thJune, 2026, no further orders are called for in this application.

12. Hence, the application stands disposed off with liberty to the applicants to approach this Tribunal again by way of an appropriate application in case the Commission does not commence the liquidation w.e.f. 16.06.2026. Pronounced in the open court on this 27th day of May, 2026.

Virender Bhat Judicial Member

Seema Gupta Officiating Chairperson

✓ REPORTABLE / NON REPORTABLE js