In an escalating dispute between neighboring states, the Himachal Pradesh government has approached the Supreme Court seeking dismissal of the Punjab government’s lawsuit concerning the control of the British-era Shanan Hydropower Project. The lease, which lasted 99 years, expired on March 2, and now both states are contesting the right to control the 110-MW project located in Jogindernagar, Mandi district, Himachal Pradesh.
The matter was brought before a bench comprising Justices Abhay S Oka and Pankaj Mithal, who decided to first address Himachal Pradesh’s preliminary objections regarding the maintainability of Punjab’s lawsuit under Order 7 Rule 11 of the Civil Procedure Code (CPC). The next hearing is scheduled for November 8.
The roots of the controversy trace back to a 1925 agreement between Raja Joginder Sen of Mandi and Col BC Batty of the British government. This agreement allowed the use of water from the Uhl River, a tributary of the Beas, for power generation primarily benefitting the undivided Punjab, Lahore, and Delhi before India’s independence.
The Himachal Pradesh government, represented by advocate Sugandha Anand, argues that the suit filed by Punjab does not establish any legal claim or cause of action as the agreement vested the control of the project in Himachal Pradesh post the lease’s expiration. The state contends that since the lease agreement has the force of law under the Himachal Pradesh Act of 1970, the project automatically reverts to them.
Additionally, the application stresses that the Punjab government was not a signatory to the original lease agreement, hence its request for a prohibitory injunction against the true owner of the land, Himachal Pradesh, is not maintainable. The Himachal Pradesh government further asserts that the type of dispute presented by Punjab is not amenable to Supreme Court jurisdiction under Article 131 of the Constitution, which deals with inter-state conflicts, because it arises from a pre-Constitution treaty.
In the interim, the Supreme Court had earlier issued summons to Himachal Pradesh in response to Punjab’s suit and had been informed of a Centre-ordered status quo regarding the possession of the project.
The Punjab government maintains that it has managed and controlled the project through the Punjab State Power Corporation Limited, as allocated in a central notification dated May 1967, and seeks a permanent injunction to retain its control.
