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1988 Supreme(SC) 186

SUPREME COURT OF INDIA
SABYASACHI MUKHARJI AND G.L. OZA, JJ.
Hyderabad Engineering Industries Ltd. etc. etc., Appellants
Versus
A.P. State Electricity Board etc. etc., Respondents.
Civil Appeals Nos. 793 to 807 of 1988,
D/- 8-3-1988.
Advocates Appeared
Mr. F. S. Nariman, Mr. G. L. Sanghi, Mr. A. K. Sen, Dr. L. M. Singhvi and Mr. Anil B. Diwan Sr. Advocates; Mr. K. Srinivasamurthy, Mr. Kailash Vasdev, Mr. K. K. Jain, Mr. K. S. Murthy, Mr. U. K. Khaitan, Mr. Ajay K. Jain, Mr. Vipin Sanghi, Mr. Parveen Kumar, Dr. A. M. Singhvi, Mr. R. S. Yadav, Mr. H. M. Singh, Mr. N. Waziri, Mr. Vinoo Bhagat, Mr. Shree Narain and Mr. Sandeep Narain, Advocates with them, for Appellants; Mr. Shanti Bhushan Sr. Advocate Mr. V. B. Reddy and Mr. K. Rajendra Chaudhary. Advocates with him, for Respondnets.

Advocates:
A.K.JAIN, A.K.SEN GUPTA, A.M.SANGHVI, Anil B.Divan, F.S.NARIMAN, G.L.SANGHI, H.M.SINGH, K.JAIN, K.RAJENDRA CHAUDHARY, K.S.Gurumurthy, KAILASH VASUDEV, L.M.SINGHVI, N.VAZIRI, PARVIN KUMAR, R.S.Yadav, SANDIP NARAYAN, SHANTI BHUSHAN, Shri Narain, U.K.KHAITAN, V.B.Reddy, VINU BHAGAT, VIPIN SANGHI

Headnote:

Electricity Supply Act, 1948 – Section 49 – Appeal – Electricity supply - Single Judge by his orders quashed the notification issued by court the respondent Board unilaterally altering the conditions of supply – It is against this judgment of the Division Bench in all these petitions which were disposed of by a common judgment that these special leave petitions have been filed and therefore these matters are before us –Held, It was also contended that it is the duty of the Board to establish and maintain sub-stations and main transmission lines and it is not open to the Board to transfer this responsibility to the consumers by requiring them to make their own arrangements to step down electricity after taking it at a high voltage – Section 2, sub-clause (7) of the Act defines the main transmission lines but all this in sub-clause (7) of Section 2 refers to is about transmission of electricity from a generating station to another generating station or to a sub-station – Apparently it refers to all the lines and equipments required to be installed from the generating station to the distributing substation, Apparently both being that of the Board itself it has to maintain it and on this basis it could not be contended that if the consumer has to receive power at a high voltage and if he wants to utilise it at a low voltage it is not his responsibility to instal equipments for stepping down the power from high voltage to low voltage – Appeals dismissed.

Judgment

OZA, J. :- Leave granted.

2. These special leave petitions have been filed against the judgment of the Division Bench of the Andhra Pradesh High Court delivered on 25-6-87 wherein the learned Judges set aside the orders passed by learned single Judge of the High Court in Letters Patent Appeal. The petitioners had filed writ petitions before the High Court which were heard by a learned Single Judge and who by his orders quashed the notification issued by I the respondent Board dated 21-7-81 unilaterally altering the conditions of supply. The learned single Judge held that the Board had no authority unilaterally to alter the conditions of supply of electricity but on appeal the learned Judges of the Division Bench get aside the judgment passed by the single Judge And held that the Board respondent had the statutory authority under Section 49 of the Electricity Supply Act, 1948 (Act for short) to lay down the conditions of supply and if any doubt exists Section 18 clause (c) of the Act confers powers on the Board. It is against this judgment of the Division Bench in all these petitions which were disposed of by a common judgment that these special leave petitions have been filed and therefore these matters are before us.

3. On 21-7-81 the respondent A. P. State Electricity Board issued a notification exercising powers under Section 49 of the Act. By this notification the Board unilaterally altered the conditions of supply for the high tension consumers of electricity. Admittedly these consumers are the industries which consume high tension power. This notification stated that the industries will be supplied the power for the contracted demands between 1501 KVA to 5000 KVA, at 33 KV whereas industries whose contracted demand is above 5000 KVA shall avail supply at 132 KV or 220 KV. To comply with this requirement high tension consumers i.e. the present appellants before this Court will either have to replace the existing transformers and high tension control grears or to instal transformers with control gears to step down supply from the now proposed voltage to the existing voltage and these modifications have to be made by the industries concerned within a period of 6 months from the date of this notification. It was further provided that After the lapse of six months if the consumers i. e. appellants have not made arrangements for receiving the supply at the proposed voltage and continue to receive supply at the voltage at which they were receiving on the date of the notification they will have to pay Additional surcharge ranging between 2.5% to 13% on their power bills.

4. It is alleged that after this notification the appellants and other similarly situated consumers made a representation to the Board and they were told that as the transmission and transformation losses in respect of supply to these high tension consumers is very much it has been decided by the Board to minimise these transmission losses and it is for that purpose that it has been decided to supply at high, voltage as transmission of high voltage current results in lesser losses of transmission and by this process energy which is lost in the transmission will be saved and it was for this purpose what this policy has been adopted by the Board. According to the appellants consumers their grievance was that, for the purpose of receiving power at a high voltage they will have to instal their own transformers which would involve heavy capital investments and for supply of power at high voltage even the Board will have to lay new lines of supply and all this would not be economical as compared to the contem plated loss of power on account of transmission but as Board did not accept the representation, the petitioners filed their petitions before the High Court and the learned single Judge of the Andhra Pradesh High Court by his judgment dated 24-9-82 allowed the writ petitions. Against, the judgment of the learned single Judge, in appeal before the Division Be

































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