Petroleum and Natural Gas Regulatory Board v. Indraprastha Gas Ltd. and Ors. AIR 2015 SC 2978

This case draws a clear line between regulating a network and fixing consumer price. PNGRB tried to set network tariff and CNG compression charges and asked disclosure on bills. The High Court struck it down. The Supreme Court agreed: the Act has no express power allowing PNGRB to fix or regulate maximum retail price (MRP) to consumers.

Key lesson: Rule-making cannot create a power that Parliament did not write into the statute. Regulation stays inside the four corners of the Act.

• Does PNGRB have legal power to fix or regulate the retail price of gas sold to consumers?
• Can such a power be inferred from rule-making when the Act is silent?
• Was the 9 April 2012 order under Section 22 valid?

• No implied price power: A power cannot be inferred from rule-making if the statute lacks an express provision.
• Delegated legislation limits: Regulations cannot go beyond, or be repugnant to, the parent Act.

The Supreme Court held that the PNGRB Act, 2008 does not confer any power on the Board to fix or regulate the maximum retail price of gas sold to consumers. The 2012 order could not stand.

The Court stressed that regulation is confined to the statute’s words. Rule-making cannot be used to create a price-fixing power that Parliament did not grant.

Where the parent statute is silent on price fixation, the regulator cannot read such power into its rule-making or regulatory functions. Delegated legislation must stay within the Act.

• Preserves separation between regulation and price control.
• Reaffirms limits of delegated legislation.
• Guides energy-sector compliance and consumer billing practices.

1. PNGRB has no statutory power to fix consumer MRP for gas.
2. Rule-making cannot create powers missing in the Act.
3. Orders based on such implied powers are ultra vires.

Mnemonic: “No Act, No MRP.”

1. Point: Price power must be in the Act.
2. Apply: Rules can’t add missing powers.
3. Decide: Order fixing MRP is void.

Issue: Can PNGRB fix or regulate gas retail prices to consumers?

Rule: No power can be inferred from rule-making when the statute is silent.

Application: PNGRB Act lacks express MRP power; regulations cannot expand it.

Conclusion: PNGRB’s price directions are ultra vires; order invalid.

Delegated Legislation

Rules made by a regulator under powers granted by an Act.

Ultra Vires

Beyond legal power. An action with no authority in law.

MRP

Maximum Retail Price charged to consumers at the endpoint.