SC warns Punjab for ignoring 15-yr-old ruling on dues to Himachal Pradesh

Times of India Published Aug 2, 2026 Reviewed Aug 2, 2026 ✓ Reviewed by citations.press editors

The Supreme Court decree of 27 September 2011 awarded Himachal Pradesh 7.19% of the power of the composite state of Punjab from the Bhakra Nangal project effective from 1 November 1966 and from the Beas project effective from the dates of production in Unit I and Unit II.

7.19 · power of composite state of Punjab Supreme Court (Justices R V Raveendran and A K Patnaik), judges

Attorney General R Venkataramani's proposal states that Punjab and Haryana will provide 13,066 megawatt‑hours of energy arrears to Himachal Pradesh at a rate of 871 megawatt‑hours per annum over 15 lean seasons.

13066 MU · energy arrears871 MU per annum · annual energy arrears15 lean seasons · duration Attorney General R Venkataramani, attorney general

Himachal Pradesh's liability for the unreimbursed share of loan servicing by Punjab and Haryana since 1966‑67 is assessed at Rs 420.7 crore, comprising Rs 249.2 crore from Punjab and Rs 171.5 crore from Haryana.

420.7 crore rupees · capital cost liability249.2 crore rupees · Punjab share171.5 crore rupees · Haryana share Attorney General R Venkataramani, attorney general

The capital cost liability could be set off against part of Himachal Pradesh's energy arrear receivables, with approximately 1,093 megawatt‑hours to be offset at a rate of Rs 3.85 per unit.

about 1093 MU · energy arrears offset3.85 rupees per unit · offset rate Attorney General R Venkataramani, attorney general

The Supreme Court observed that Punjab has a habit of defying decrees and that old habits die hard.

Supreme Court bench (CJI Surya Kant, Justices Joymalya Bagchi and V Mohana), judges

The Supreme Court granted Punjab two weeks to reconsider its objections to the settlement proposal.

2 weeks · time granted Supreme Court bench, judges

The Supreme Court decree is 15 years old, based on an original suit filed 30 years ago, addressing a 60-year-old inter‑state dispute.

15 years · decree age30 years · original suit age60 years · dispute age Supreme Court bench, judges

NEW DELHI: Punjab govt's stiff resistance to attorney general R Venkataramani's proposal for amicable implementation of a 15-year-old Supreme Court decree settling Bhakra Nangal and Beas power dues since 1966 in favour of Himachal Pradesh made SC observe, "The state has a habit of defying decrees and old habits die hard."Venkataramani told a bench of CJI Surya Kant and Justices Joymalya Bagchi and V Mohana that he had extensive consultations with Punjab, Haryana, Himachal and Union ministry of power after getting the records examined by CAG for independent determination of the historical capital cost liability."...a mutually workable settlement framework has been evolved.

It envisages a cashless settlement, wherein the respective claims and liabilities are proposed to be adjusted through in-kind settlement of energy arrears and set-off of capital cost liability, thereby obviating the need for any direct financial transaction between the states," the AG said.Senior advocates Kapil Sibal and Balbir Singh, appearing for Himachal and Haryana, respectively, said they were agreeable with the AG's settlement proposal for implementation of the decree, which was passed by the SC in 2011 on an original suit filed by Himachal 30 years ago seeking settlement of assets on division of Punjab in 1966.For Punjab, senior advocate Nidhesh Gupta said the state had key concerns over workability of the AG's proposal and said the state would stand to lose substantially.

Given the fact that it is a 15-year-old decree passed on a 30-year-old original suit seeking resolution of a 60-year-old inter-state dispute, the bench said, "Your state has a habit of defying decrees...""There is a decree in Himachal's favour. When we order implement, it will be with interest from 2011.

We will not allow them to be deprived of the fruits of the decree. If you settle, it is well and good. Otherwise, be ready for consequences." It posted the matter for hearing on Aug 12.In its July 30 order, the bench said, "While the states of Himachal and Haryana have graciously agreed in principle to the proposal, the state of Punjab has raised objections thereto.

In the interest of justice, two weeks time is granted to Punjab to reconsider and clarify its stand."The AG's proposal had said, "Punjab and Haryana will provide 13,066 MU of energy arrears to HP at 871 MU per annum over 15 lean seasons (Oct-March), in the inter-se ratio of 58:42 (Bhakra Nangal project) and 60:40 (Beas projects).

HP to pay BBMB-determined charges for the year in which each tranche is received."HP's liability (7.19% of composite Punjab) towards the capital cost of Bhakra Nangal and Beas projects - being the unreimbursed share of loan servicing by Punjab and Haryana since 1966-67 - be assessed at Rs 420.7 crore (Punjab: Rs 249.2 crore; Haryana: Rs 171.5 crore).

The capital cost liability could be considered to set off against part of HP's energy arrear receivables. At the rate of Rs 3.85 per unit, the units to be offset is approximately 1093 MUs."SC on Sept 27, 2011 (Justices R V Raveendran and A K Patnaik) had decreed the suit in favour of HP by ruling, "The state is entitled to 7.19% of the power of the composite state of Punjab from the Bhakra Nangal project with effect from Nov 1, 1966, and from Beas project with effect from the dates of production in Unit I and Unit II."Get the latest India News and Live updates.

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