New Delhi, Sep 23 (PTI) The Himachal Pradesh government on Monday sought the dismissal of the Punjab government's suit in the Supreme Court by which it has sought 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 of Justices Abhay S Oka and Pankaj Mithal said it will first 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).
"We will have to first hear the preliminary objections raised against the suit," the bench said and adjourned the matter.
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 that expired on March 2.
The dispute between the neighbouring states is related to the British-era Shanan Hydropower Project at Jogindernagar of Mandi district in Himachal Pradesh.
It 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.
In its application filed through advocate Sugandha Anand, the Himachal Pradesh government 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 Himachal Pradesh 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.
"Since the agreement in question has a force of law as per Section 2 (f) of the 1970 Act (Himachal Pradesh Act), therefore by operation of law the suit property is vested in the state of Himachal Pradesh/Defendant No.1.
"Hence, plaintiff has no cause of action to maintain the present suit against the true owner and therefore, the plaint is liable to be rejected as the same is barred by law as well as discloses no cause of action," it said.
The 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.
"Hence, the plaint discloses no cause of action for a permanent prohibitory injunction. The plaintiff has never sought declaration for ownership of the project," the Himachal Pradesh application said.
The hill state said the Punjab government's suit filed under Article 131 of the Constitution, which allows a state to approach the Supreme Court directly in case of inter-state dispute, discloses no cause of action and is barred by law.
"It is submitted that a dispute arising out of a pre-Constitution treaty or agreement is not amenable to the jurisdiction of this court under Article 131 of the Constitution of India.
"The instant suit is in the nature of a 'dispute' which emanates/arises out of the agreement dated March 3, 1925, between the British Government and the Raja of Mandi," it said.
On March 4, the top court issued a summons on the suit of the Punjab government and sought a response from the Himachal Pradesh government on it.
It was informed that the Centre has ordered status quo with regard to the possession of the project.
The bench had directed the Punjab government to place on record the copy of the order dated March 1, of the Union Ministry of Power asking both the states to maintain the status quo on the project.
The Punjab government's suit filed through its secretary (power and energy), said, "The instant suit is being filed on behalf of the government of Punjab seeking relief of permanent prohibitory injunction for restraining defendant 1 (Himachal Pradesh government) from disturbing the lawful-peaceful possession and smooth functioning over the Shanan Power House Project as the plaintiff (Punjab) is the owner and is in lawful possession of Shanan Power House Project and its extension project along with all assets."
In the interim, the Punjab government wanted the status quo to be maintained and sought a "temporary injunction" against the dispossession of the project.
The state government further claimed that the project in dispute has been "managed and controlled by Punjab" through Punjab State Power Corporation Limited and allocated to it by a central notification of May 1967.