Shanan Hydropower Project: Himachal Pradesh Moves SC For Dismissal of Punjab’s Suit

A Supreme Court bench led by Justice Abhay S Oka stated that it will first hear the application of Himachal Pradesh concerning the Shanan Hydropower Project, whose 99-year-lease agreement expired on March 2. Punjab government had earlier moved court against Himachal government's attempt to take control over the project. The hearing has been scheduled on November 8.

New Delhi:The Himachal Pradesh government on Monday sought a direction from the Supreme Court to dismiss a suit filed by the Punjab government, seeking to restrain the hill state from taking over the control of the Shanan Hydropower Project upon expiry of the 99-year lease agreement.

A bench led by Justice Abhay S Oka said the court will hear on November 8, the Himachal Pradesh government's application challenging the maintainability of the suit of the Punjab government under Order 7 Rule 11 of the Civic Procedure Code (CPC).

Adjourning the matter, the bench, also comprising Justice Pankaj Mithal, said: "We will have to first hear the preliminary objections raised against the suit”.

The HP government, in its application, said the suit of the Punjab government was barred by law, does not disclose any cause of action, and is not at all maintainable. The state government said the 1925 agreement was the basis for the construction of the project, the grant of lands, and the recognition of rights between the parties.

Earlier, the Punjab government moved the apex court against the Himachal Pradesh government's attempt to take control of the 110-MW Shanan Hydropower Project from the Punjab government on the expiry of the 99-year lease on March 2.

The project was constructed in 1925 under the lease agreement executed between Raja Joginder Sen, the ruler of the then Mandi state and Col BC Batty, who represented the British government and served as the chief engineer of the undivided Punjab.

Under the agreement, the water for the project was to be utilised from Uhl River, a tributary of Beas River for generating power for undivided Punjab, Lahore, and Delhi before independence.

The HP’s application said the Punjab government was never the signatory of the land lease agreement, hence the present suit seeking a prohibitory injunction is not maintainable against the true owner of the land.

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