As per the case facts BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd appealed against certain findings of the Appellate Tribunal for Electricity regarding a tariff order issued by ... the Delhi Electricity Regulatory Commission DERC The appeal reached the Supreme Court to challenge the methodology adopted by DERC The question arose whether DERC's methodology particularly concerning the treatment of units as sales was contrary to settled legal principles Finally the Supreme Court disagreed with the respondent's stand concluding that DERC's methodology was indeed contrary to settled principles of law The Court affirmed that an imaginary state of affairs when deemed real by law must be taken to its logical end and thus the treatment of units as sales was commendable and correct