Judgment

RAY

( 1 ) THESE appeals are by special leave from the judgment dated 26/08/1975 of the High Court of Andhra Pradesh.

( 2 ) THE special leave was granted as follows :-

"during the period in question there was an order of the State Government under Section 22-B of the Electricity Act, 1910 limiting the supply of electricity to 75 per cent of the previous consumption. The quotas fixed by the Board are very often below 75 per cent and sometimes as low as 30 per cent. Special leave should be granted limited to the question whether in the facts of the order under Section 22-B it is open to reduce the supply to anything less than 75 per cent and charge penalty of extra charges for that quantity. "

( 3 ) THE State Electricity Board referred to for brevity as the Board supplies electricity of two varieties. One is high tension. The other is low tension. Power is generated by hydro electrical method by use of river waters and also by thermal method using coal. The Board fixed quotas for consumption with effect from March 1972 because power generated was not adequate to meet the requirements. For a short period between 7 July, 1972 and 16/08/1972 these quots were lifted. The restrictions were reimposed. An extra charges for consumption of energy beyond the limits of quotas was introduced on 25/02/1973. The charge was double the usual rate. This continued till 1/08/1974. The Board introduced on 29/07/1974 a further cut in quotas and enhanced the extra charges. The extra charges were double the usual rates, if the excess consumption was 20 per cent or below that limit over the newly introduced quotas. If the total consumption was in excess of 20 per cent, the extra charge was four times the total excess consumption. The Board on 20/03/1975 reduced the quotas still further retaining the pattern of extra charges. Weekly quotas instead of monthly ones, were introduced. A restriction was imposed to the effect that for every 5 per cent of excess consumption there would be one days cut.

( 4 ) IT may be stated here that on 29/04/1971 the usual tariffs both for high tension and low tension energy were enhanced. The Board on 1/06/1974 removed the slab system and a uniform rate of 14 np. per unit was introduced.

( 5 ) THE appellants filed writ petitions in the High Court for a writ, direction or order to collect from the appellants normal charges for consumption of electricity and not to disconnect their supply and further order declaring the restrictions with regard to imposition of quota and the levy of penalty charges as illegal. The High Court held that the Board has power to fix quotas or otherwise restrict consumption of electrical energy and collect charges at four times the normal rates.

( 6 ) THE appellants obtained leave limited to the question whether under Section 22-B of the Electricity Act, 1910 referred to as the 1910 Act it is open to the Board to reduce the supply to anything less than 75 per cent and levy extra charges for excess supply.

( 7 ) THE State Government on 6/04/1972 made an order under Section 22-B of the 1910 Act, inter alia, as follows :-

"all consumer of electricity (both high tension and low tension) being billed under high tension categories I (both normal and alternative tarrifs) II and III and Low Tension category V shall so regulate their use of electricity as not to exceed in any month, the limits of maximum demand and energy specified hereunder :

THE maximum demand limit will be 75 Per Cent of the average monthly maximum demand over the period from March, 197 1/02/1972. The limit for energy consumption will be 75 Per Cent of the average monthly consumption (number of units) over the period from March, 197 1/02/1972. The supply to consumers who violate the restrictions being imposed hereunder will be liable to be cut off without notice. Without prejudice to the right to disconnect supply, the Board will also bill the energy and maximum demand unilised in excess of the limits above prescribed, at double the ta