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1991 Supreme(SC) 273

SUPREME COURT OF INDIA
M.N. VENKATACHALIAH, J.S. VERMA AND N.D. OJHA, JJ.
M/s. Hindustan Zinc Ltd. etc. etc., Appellants

Versus

A.P. State Electricity Board and others, Respondents.
Civil Appeals Nos. 2567-70, 2690-94, 5379-80, 4040 of 1985, 1976 of 1986 and S.L.P. (C) No. 11259 of 1986

Decided on 2-5-1991.

Headnote:

Electricity (Supply) Act, 1948 - Sections 16, 49 and 59 - State Electricity Consultative Council.- Provision for sale of electricity by Board to persons other than licensees - Directions by Central Government to Authority Several industrial concerns against - Tariffs consist of three parts - Appellants are all H.T. power consumers of one category or other - Tariffs consist of three parts Part-A, Part-B and Part-C. Part-A provides for H.T. tariffs; Part-B for L.T. supply; and Part-C provides, inter alia, for miscellaneous and general charges. H.T. consumers in -P;rt-A are broadly classified into three categories comprising of power intensive consumers and some others - Board retained power to decide in accordance with guidelines as to which industries were power intensive and which were not - This was position in tariffs of 1975. Subsequently, Board began to deal with power intensive industries by notifying tariffs for them separately from time to time - In effect, there were four classes of consumers availing H.T. supply: (1) H. T. consumers falling under H.T. Category-1 (Industrial); (2) H. T. consumers falling under H. T. Category-II (Non-Industrial); (3) H. T. consumers falling under category power intensive industries; and (4) H. T. consumers availing supply of electricity for irrigation and agricultural purposes included in Part-B - Held, applicability of term relating to fuel cost adjustment to power intensive tariffs this point is not. material. However, it has also been shown that in the bills issued to the power intensive consumers same was specifically indicated. If any communication was needed, this indication in the bills issued to the power intensive consumers satisfied that requirement. We are, therefore, unable to accept contention that the term relating to fuel cost adjustment made applicable to H.T. consumers had no application to the power intensive consumers during the relevant period – Court opinion that any detailed decision on this aspect also is unnecessary on view taken by us about Boards power to revise tariffs, no case for striking down same as arbitrary and discriminatory having been made out - In view of earlier decision of this Court in Govinda Prabhu, (AIR 1986 SC 1999), with the conclusion as well as reasoning of which we respectfully concur and reiteration of Courts limited power of judicial review in Shri Sitaram Sugar Co. Ltd., (1990) 3 SCC 223, recently decided by a Constitution Bench, court not find any reason to accept any of arguments advanced on behalf, of appellants by their learned counsel - Appeals / special leave dismissed.

JUDGMENT


VERMA, J.:— These appeals by special leave are by several industrial concerns against the Andhra Pradesh State Electricity Board (hereinafter called the Board) challenging the common judgment of the Andhra Pradesh High Court in writ petitions filed by these concerns challenging the revision of the electricity tariffs by the Board by its proceedings contained in B.P. Ms. No. 1014 (Commercial) dated 13-12-1983 which came into force on 15-1-1984. Prior to this revision, the tariffs were governed by B.P. Ms. No. 418 (Commercial) dated 12-1-1981. On 13-121983, two separate orders were issued by the Board revising the various tariffs. By one of them, namely, B. P. Ms. No. 1014, the tariffs for various categories of consumers including H.T. categories 1 and 11 were revised. By the other order of the same date, namely, Memo. No. DE/COML/IV/2250/83/I, the tariffs for high power intensive industries were also revised upwards. Out of the appellants, it was applicable to five units, namely, (1) Nav Bharat Ferro Alloys Ltd., (2) AndhraSugars Ltd., (3) Ferro Alloys Corporation Ltd., (4) Grindwell Norton Ltd., and (5) A. P. Carbides Ltd. This upwards revision of tariffs made by the Board by its two orders dated 13-12-1983 which were made effective from 15-1-1984, was challenged by the appellants in writ petitions filed in the Andhra Pradesh High Court on various grounds. The High Court rejected all the grounds and dismissed the writ petitions by its common judgment now reported in AIR 1985 Andh Pra 299. These appeals by special leave are against the High Court judgment.

2. The appellants are all H.T. power consumers of one category or other. The tariffs consist of three parts : Part-A, Part-B and Part-C. Part-A provides for H.T. tariffs; Part-B for L.T. supply; and Part-C provides, inter alia, for miscellaneous and general charges. H.T. consumers in -P;rt-A are broadly classified into three categories: H.T. Category-1 (Industrial); H. T. Category-11 (Non-Industrial,); and H. T. Category-111 comprising of power intensive consumers and some others. The Board retained the power to decide in accordance with the guidelines as to which industries were power intensive and which were not. This was the position in the tariffs of 1975. Subsequently, the Board began to deal with the power intensive industries by notifying tariffs for them separately from time to time. In effect, there were four classes of consumers availing H.T. supply: (1) H. T. consumers falling under H.T. Category-1 (Industrial); (2) H. T. consumers falling under H. T. Category-II (NonIndustrial); (3) H. T. consumers falling under the category power intensive industries; and (4) H. T. consumers availing supply of electricity for irrigation and agricultural purposes included in Part-B. The tariffs for these different categories of H.T. consumers 1 were enhanced from time to time. For H. T. Category-1 (Industrial), it was 21 paise in 1975, increased to 30 paise in 1979, 33 paise in 1980, 40 paise in 1981 and 48 paise in 1984. Likewise, there was corresponding increase in the energy rates for H.T. Category-II (NonIndustrial), being 28 paise, 37 paise, 40 paise, 47 paise and 56 paise. The tariffs for power intensive industries were, however, increased by separate notifications issued by the Board from time to time. It was 11 paise prior to 1975, raised to 12.2 paise in 1977, 16 paise in 1978, 18.5 paise in September 1979, 21 paise in November 1979, 25 paise in 1980, 32 paise in 1981 and 45 paise in 1984. The H. T. consumers grouped in Part-B were required to pay 15 paise under the 1975 tariffs and 16 paise thereafter. Besides the energy charges as stated above, the H.T. consumers were also required to pay at different rates effective from 1-9-1982 an -additional charge levied fuel cost adjustment charges. The H, T. consumers.were also required to pay some amount as voltage surchargein accordance with the terms of the agreement entered into by the individual consumers with the Bo
























































































































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