GG News Bureau
Shimla, 23rd Sept. The Himachal Pradesh government on Monday requested the Supreme Court to dismiss a suit filed by the Punjab government, which seeks to restrain Himachal Pradesh from taking control of the Shanan Hydropower Project following the expiration of a 99-year lease agreement.
A bench of Justices Abhay S. Oka and Pankaj Mithal scheduled a hearing for November 8 to address Himachal Pradesh’s application challenging the maintainability of Punjab’s suit under Order 7 Rule 11 of the Civil Procedure Code (CPC).
The bench stated, “We will have to first hear the preliminary objections raised against the suit,” before adjourning the matter.
Punjab’s lawsuit stems from a historical agreement regarding the 110-MW Shanan Hydropower Project, which was constructed in 1925. The project utilized water from the Uhl River to generate power for undivided Punjab, Lahore, and Delhi prior to independence.
In its application, Himachal Pradesh argued that the Punjab government’s suit is barred by law and lacks a valid cause of action, stating, “The 1925 agreement has a force of law, therefore by operation of law, the suit property is vested in Himachal Pradesh.” The state asserted that the Punjab government was never a signatory to the original lease agreement and, as such, the suit seeking a prohibitory injunction is not maintainable.
Punjab’s suit, filed under Article 131 of the Constitution, claims ownership and seeks a permanent injunction against Himachal Pradesh’s actions concerning the project.
The Punjab government had requested a temporary injunction to maintain the status quo regarding possession of the Shanan Power House Project, asserting that it has managed and controlled the project through the Punjab State Power Corporation Limited since 1967.
The Supreme Court previously issued a summons to the Himachal Pradesh government regarding Punjab’s suit, instructing both states to maintain the status quo as ordered by the Union Ministry of Power.
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