The Supreme Court has taken a significant step in the ongoing legal battle between the Punjab and Himachal Pradesh governments over the control of the Shanan Power House Project. 

On Monday, the Court issued summons in response to Punjab's suit, which sought a permanent injunction against the Himachal Pradesh government, preventing any interference with the lawful possession and operation of the power project.

A bench comprising Justices Abhay S Oka and Ujjal Bhuyan heard the matter and highlighted the urgency of the situation by deciding to address the prayer for interim relief first. 

Punjab's suit, filed under Article 131 of the Constitution, asserts its rightful ownership and control over the Shanan Power House Project, which has been under its management since its inception in 1932. The state argues that the project falls under its jurisdiction as per a notification issued by the Ministry of Irrigation and Power, Government of India, on May 1, 1967.

The crux of Punjab's plea is to prevent the Himachal Pradesh government from taking over the project, especially as the 99-year lease for the Shanan Hydropower Project is nearing expiration. The fear is that without swift action, Himachal Pradesh could assert control over the project, potentially disrupting its operations and causing irreparable harm to Punjab's interests.

To address these concerns, Punjab has sought both permanent and temporary injunctions against Himachal Pradesh. The former aims to prevent any interference with its control over the project, while the latter seeks to maintain the status quo until the legal dispute is resolved.

The urgency of the matter was highlighted when Advocate Shadan Farasat, representing Punjab, urgently requested the listing of the plea before the Chief Justice of India DY Chandrachud-led bench.

Central to Punjab's argument is the rejection by the Ministry of Irrigation and Power, Government of India, of Himachal Pradesh's claims to the Shanan Power House Project. The Union government has reiterated Punjab's rights over the project, based on the notification issued in 1967, effectively closing the issue.

Case: State of Punjab vs. State of Himachal Pradesh and Ors.