Back
1991 Supreme(SC) 292
SUPREME COURT OF INDIA
J.S.Verma : M.N.Venkatachaliah : N.D.Ojha
Hindustan Zinc Limited
Versus
A.P.State Electricity Board
Case No. : 1 , 2 , 2569 , 2570 of 1985
Date of Decision : 5/9/91
The decision to allow payment of arrears in instalments is a discretionary matter for the concerned administrative authority, which must balance the hardships of the debtor against its own financial obligations and operational requirements.
Headnote:(A) Electricity Charges - Recovery of arrears - Payment in instalments - Decision to allow payment of arrears in instalments is essentially for the concerned authority to decide, taking into account the particularities of the circumstances and hardships of each individual case (Para 2) - It is relevant to consider that the authority may have borrowed funds at high rates of compound interest, and withholding payment of charges could hinder its functions (Para 2).
Facts of the case:
Appellants sought directions to pay arrears of electricity charges in reasonable instalments, contending that the substantial quantum of the liability would lead to the closure of their industries. They requested breathing time to ensure survival while enabling the recovery of legitimate dues.
Findings of Court:
The court found that the matter of granting instalments is for the electricity board to decide based on the specific hardships of each case and the board's own financial constraints.
Issues: Whether the court should direct the electricity board to allow the payment of arrears in instalments to prevent the closure of the appellants' industries.
Ratio Decidendi: The court held that the discretion to grant instalments for the payment of arrears rests with the administrative authority, as it is best positioned to evaluate individual hardships and balance them against its own financial obligations and operational needs.
Result: Appellants directed to tender 50 per cent of the amount due under subsisting bank-guarantees within 30 days and make representations to the board setting out special financial circumstances to justify the grant of time.
Legal Category Hierarchy
-
administrative law
-
statutory bodies
-
electricity boards
- recovery of dues
-
electricity boards
-
statutory bodies
-
practice and procedure
-
execution of judgments
- payment in installments
-
execution of judgments
(1) BY these applications the appellants seek directions of this court to enable them to pay in reasonable instalments the arrears of electricity charges that became recoverable by the respondent-Board pursuant to the judgment dismissing appellants appeals. Appellants submit that the quantum of the arrears runs into crores of rupees and that appellants industries would virtually be exposed by the crippling liability to closure. Appellants say that if some breathing time is allowed, it would, while ena- bling the State Electricity Board to recover all its legitimate dues, also enable the appellants to survive.
(2) WE are afraid these are matters essentially for the Electricity Board to decide taking into account the particularities of the circumstances and hardships of each individual case. It is also necessary for the appellants to realise that the Electricity Board has itself borrowed money on high rates of compound interest and that if appellants withhold payment of electricity charges the functions of the Board itself would become difficult.
(3) AFTER considering the matter we suggested to the learned counsel on both sides that the appellants should within 30 days from today tender to the Board 50 per cent of the amount due under the subsisting bank- guarantees and make appropriate representations to the Board setting out the special financial circumstances of their undertakings which justify grant of time. The Board, we are sure, will take an appropriate decision having regard to all the relevant circumstances.
