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1996 Supreme(SC) 301

SUPREME COURT OF INDIA
G B Pattanaik, Kuldip Singh
BIHAR STATE ELECTRICITY BOARD AND ANOTHER, APPELLANTS
VERSUS
BIHAR 440 VOLT VIDYUT UPBHOKTA SANGH AND OTHERS, RESPONDENTS.
Civil Appeals No. 6320 of 1994 with Nos. 6321-25, 7398-99 of 1994, 678, 680, 681-84, 679,903, 1036,3032, 5692, 5613, 5693, 5694 and 7419 of 1995, SLPs (C) Nos. 13398, 16043, 16375, 3635, 6017, 6217, 6280, 8363, 19266 and 8068 of 1995, decided on February 7, 1996.

Headnote:

Constitution of India,1950 – Article 226 - Challenging validity of tariff - Bunch-petitions under Article 226 of Constitution, challenging the validity of tariff notification of 1993 issued by State Electricity Board (the Board) were filed before High Court - High Court by a consolidated judgment disposed of petitions - These appeals/special leave petitions by consumers and Board are against judgment of High Court - Learned counsel for consumers have raised two questions before us - First contention relates to first part of issue - It is stated that enhancement of quantum of cash security from 45 days to 90 days in lieu of guarantee is arbitrary - Second question relates to issue - It is contended that provisions for enhancing transformer capacity not to exceed 150% of contract demand and that also on transformers which are already operating is arbitrary - So far as quantum of security is concerned, court see no ground to interfere with reasoning and conclusion reached by High Court – Held, court are of view that High Court fell into patent error in reaching conclusion that there was discrimination between the two types a of consumers i.e. High Tension consumers and Low Tension consumers - These are two distinct and separate classes - Minimum tariffs/guarantees insofar as Low Tension consumers are concerned, have been fixed keeping in view nature of supply to these consumers - Low Tension consumers cannot be equated with the High Tension consumers - High Court fell into patent error in clubbing two categories together to prove charge of discrimination - Court therefore, set aside reasoning and conclusions of High Court so far as issue (I) is concerned and court hold that levy on two distinct minimum guarantee charges quoted above is valid and in accordance with law - Appeals are disposed of - Petitions stand disposed of/dismissed accordingly.

ORDER

1. Bunch-petitions under Article 226 of the Constitution, challenging the validity of tariff notification of 1993 issued by the Bihar State Electricity Board (the Board) were filed before the High Court. The High Court by a consolidated judgment dated 18-4-1994 disposed of the petitions. These appeals/special leave petitions by the consumers and the Board are against the judgment of the High Court.

2. The High Court on the basis of the contentions of the parties culled out fourteen issues for its consideration. The issues are as under :

(a) Whether Sections 49 and 59 of the 1948 Act are ultra vires the Constitution of India ?

(b) Whether the 1993 tariff is ultra vires Article 14 of the Constitution of India, read with Sections 49 and 59 of the 1948 Act ?

(c) Whether the Board has been acting in a most efficient and economical manner as contemplated under Section 18(a) of the 1948 Act and if it be not so, whether the 1993 tariff is liable to be struck down on that ground alone ?

(d) Whether this Court can issue any direction to the Board to improve its generation capacity as also to act in an efficient and economical manner ?

(e) Whether the levy of the minimum guarantee charges and the demand charges on monthly basis is justified in law ?

(f) Whether the Board had any jurisdiction to charge penal rate for shortfall in the supply of the electrical energy ?

(g) Whether enhancement of the amount in security in terms of clause 15 of 1993 tariff and deletion of the provision amount payment of interest on security deposit is valid in law ?

(h) Whether clause 16.4 of the tariff, whereby and whereunder the transtormer capacity is to exceed 150% of the contract demand is valid in law and in any event whether the same should be given a prospective effect ?

(i) Whether clause 16.10 of the tariff providing for levy of operational surcharge is ultra vires Sectidns 49 and 59 of the 1948 Act ?

(j) Whether levy of fuel surcharge is valid in law ?

(k) Whether the provisions relating to those L.F. consumers who had connected load more than 80 horsepower can be directed to convert the same into High Tension electrical energy is valid in law ?

(l) Whether the levy of fixed charges on L. T. consumers is ultra vires ?

(m) Whether the levy of fixed charges on airconditioner is permissible under Sections 49 and 59 of the 1948 Act ?

(n) Whether clubbing of different consumers in the same premises is permissible in law ?

3. Learned counsel for the consumers have raised two questions before us. The first contention relates to the first part of issue (g). It is stated that the enhancement of the quantum of cash security from 45 days to 90 days in lieu of guarantee is arbitrary. The second question relates to issue (h). It is contended that the provisions for enhancing the transformer capacity not to exceed 150% of the contract demand and that also on the transformers which are already operating is arbitrary. So far as the quantum of security is concerned, we see no ground to interfere with the reasoning and the conclusion reached by the High Court. There is nothing on the record to show that the enhancement of the security from 45 days to 90 days is arbitrary iii any manner. There is no force in the second contention also. The permissible capacity of a transformer is a matter which relates to scientific know-how. The Board has framed the impugned tariff 16.4 on the basis of a scientific advice. We are not inclined to interfere with the reasoning and the conclusions reached by the High Court in this respect.

4. We, therefore, reject both the contentions raised by the learned counsel for the consumers.

5. Mr Reddy, learned Additional Solicitor General has challenged the findings of the High Court on second part of issue (g), issues (i) and (1). We see no force in the contention of the learned Additional Solicitor General so far as issues (g) and (i) are concerned. This Court in Ferro Alloys Corpn. Ltd. v. A. P SEB1 SCC at p. 189 (para 158) has held t



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