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Synopsis

The Supreme Court on Monday issued summons in the Punjab Government's suit seeking a permanent prohibitory injunction against the Himachal Pradesh government restraining them from interfering in the lawful peaceful possession and smooth functioning over the Shanan Power House Project.

A bench of Justices Abhay S Oka and Ujjal Bhuyan was further informed that the Union government had on March 1 via a letter asked the states to maintain status quo.

Court went on to say that it would hear the prayer for interim relief first.

"..a Decree of Mandatory Injunction may kindly be passed directing the defendant No. 1 not to depute any officer or team of officers to take over the Suit Property from the management and control of plaintiff as mentioned by the Defendant No. 1 in pursuance to the letter dated 29.04.2023, since, the plaintiff is the Lawful Owner In Possession of the Suit Property and are having the entire control and management over the suit property i.e. Shanan Power House Hydel Project since its inception i.e. 1932", the original suit filed by Punjab under Article 131 of the Constitution states.

During the pendency of the instant Suit a decree of temporary ad-interim injunction has also been sought against Himachal Pradesh, to maintain status quo qua the Suit Property as it exists at the time of filing of the present Original Suit.

A CJI DY Chandrachud led bench had agreed to take up the matter on Monday after Advocate Shadan Farasat mentioned the Punjab government’s plea for urgent listing.

Court has been told that the 99-year lease for Shanan Hydropower Project was expiring and if the matter was not taken up urgently, the Himachal Pradesh government would take over the project.

Filed through AOR Siddhant Sharma, the suit states that Shanan Power House Project is a property managed and controlled by State of Punjab through its Corporation i.e. Punjab State Power Corporation Limited (erstwhile Punjab State Electricity Board i.e. PSEB) which has been allocated to the State of Punjab by way of Notification dated 01.05.1967 issued by Ministry of Irrigation and Power, Government of India.

Notably, the court has been informed that Ministry of Irrigation and Power, Government of India on multiple occasions has already rejected the claim of Himachal Pradesh of taking over the Suit Property from Punjab and the same has been rejected and the issue has specifically been closed by the Union of India on the basis of the Notification dated 01.05.1967.

Case Title: State of Punjab vs. State of Himachal Pradesh and Ors