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2009 Supreme(SC) 716

2009(3) Supreme 778
SUPREME COURT OF INDIA
(From Patna High Court)
Dr. Arijit Pasayat and Tarun Chatterjee, JJ.
Bihar State Electricity Board — Appellant
versus
M/s Pulak Enterprises and Ors. — Respondents
Civil Appeal Nos. 7220-7239 of 2000
WITH
Civil Appeal No. 7219 of 2000
Civil Appeal Nos. 2555-2559 of 2009
(Arising out of SLP (C) Nos.456-460/2001)
Civil Appeal 2560 of 2009
(Arising out of SLP (C) No.12624/2001)
Civil Appeal 2561 of 2009
(Arising out of SLP (C) No.12625/2001)
Decided on : 15-04-2009

Advocates appeared:
V.R. Reddy, Mir Jha, Sunil Kumar, Harish N. Salve, D.A. Dave, Sr. Advs., Navin Prakash, Sumant Bhardwaj, Ms. Anita Kanungo, Ms. Mridula Ray Bharadwaj, L.K. Bajla, Praveen Kumar, Gopal Prasad, R.N. Karanjawala, Ms. Nandini Gore, Debmalya Banerjee, Bharat Singh, Mrs. Manik Karanjawala, Jayant Mohan, Ms. Pragya Singh Baghel, Ajit Kumar Sinha, Shree Prakash Sinha, Ms. Sunita Sharma, Ms. Manjula Gupta, Gopal Prasad, S. Chandra Shekhar, Himanshu Shekhar, Gopal Singh, Vivek Singh, Advocates.

IMPORTANT POINT
Electricity Board is entitled to levy fuel surcharge on the consumers receiving high tension supply leaving out the consumers coming in other categories.

Headnote:(a) Constitution of India,1950 – Article 226 – Reasoned Order – High Court directing BSEB for passing a reasoned order – Board thereafter proposed amendments in tariff – Facts and figures contained in the agenda notes which were the basis of the proposed amendments and revision in the rates, can be treated as reasons for the same – Direction of the High Court to pass a reasoned order cannot be interpreted as a direction to set out reasons for fixing the particular rates of fuel surcharge. (Para 16)

        (b) Constitution of India,1950 – Article 226 – Constitution of Expert Committee – There may be justification to constitute a committee and refer the dispute to it when the relevant data have to be gathered or facts have to be ascertained without which the dispute cannot be resolved – This normally is done in public interest litigation – In adversary litigation it is for the parties to produce materials in support of their respective claim – Court is not supposed to make a roving enquiry for allowing or disallowing the claim of one or the other party. (Para 17)

        (c) Electricity (Supply) Act, 1948 – Section 49 – If the function of fixing the rate of fuel surcharge is held to be legislative, the principles of natural justice would not be applicable – Scope of judicial review would also be limited to plea of discrimination i.e. violation of Article 14 of the Constitution – Price fixation is neither the forte nor the function of the Court. (Para 21)

        AIR 1978 SC 1296; AIR 1984 SC 657; AIR 1986 SC 1999 – Relied upon.

        (d) Electricity (Supply) Act, 1948 – Section 49 – Price fixation – Price fixation is more in the nature of a legislative measure even though it may be based upon objective criteria – It should not, therefore, give rise to a complaint that rule of natural justice has not been followed in fixing the price. (Para 23)

        AIR 1978 SC 1296; AIR 1975 SC 460; AIR 1987 SC 1802; (1990)3 SCC 223 – Relied upon.

        (e) Electricity (Supply) Act, 1948 – Section 49 r/w clause 16.10, Tariff notification – Fixing rate of fuel surcharge under the two provisions are different – Fuel surcharge is undoubtedly a part of tariff – But fixing rates of consumption charges or the guaranteed charges or the fixed charges or the delayed payment surcharge etc., and fixing rates of fuel surcharge do not stand on par. (Para 26)

        (f) Electricity (Supply) Act, 1948 – Section 49 – Where the fixation of rate or determination of the amount is made individually, there may be justification or necessity to give opportunity of hearing to the person or persons concerned – In case of rate fixation for persons at large, the only way by which such opportunity can be given is to notify the rates and then invite objections – However, there is no such provision. (Para 27)

        (g) Interpretation of statutes – Though sometimes presence or absence of comma has been taken aid of in interpreting the particular provision, the ordinary rule is that punctuation mark is a minor element in the interpretation of Statute. (Para 29)

        AIR 1952 SC 369 – Relied upon.

        (h) Electricity (Supply) Act, 1948 – Section 49(3) – Section 49(3) expressly authorises the Board to fix different tariffs for the supply of electricity classifying the consumers into different categories and fixing different tariffs – Thus, the Electricity Board is entitled to levy fuel surcharge on the consumers receiving high tension supply leaving out the consumers coming in other categories – Validity of similar provisions of the 1979 Tariff of the Bihar State Electricity Board and section 49(3) already upheld. (Para 30)

        AIR 1968 SC 991; AIR 1984.SC 657; AIR 1986 SC 1999 – Relied upon.

       Facts of the case :

        1. The dispute relates to fuel surcharge.

        2. The validity of levy has been upheld by Supreme Court in Bihar State Electricity Board and Anr. v. Bihar 440 Volt Vidyut Upbhokta Sangh and Ors. (1997) 11 SCC 380.

        3. Therefore, the dispute before the High Court related to method of calculation and in substance the rate of fuel surcharge.

       Finding of the Court :

        The computation of the rates of fuel surcharge by the impugned circular for the years 1996-97 and onwards so far as it relates to the purchase of electricity from TVNL and “deemed supply” by the Board to TISCO thus does not appear to be in accordance with law.

       Result : Appeal by the Bihar State Electricity Board dismissed. Other appeals disposed of.

       

JUDGMENT

Dr. Arijit Pasayat, J.—

1. Leave granted in Special Leave Petitions.

2. These appeals are directed against the common judgment of the Patna High Court allowing the batch of writ petitions. The dispute relates to fuel surcharge. The validity of levy has been upheld by this Court in Bihar State Electricity Board and Anr. v. Bihar 440 Volt Vidyut Upbhokta Sangh and Ors.1 (1997 (11) SCC 380). Therefore, the dispute before the High Court related to method of calculation and in substance the rate of fuel surcharge.

3. The Board has its own power generation units namely, Patratu Thermal Power Station, Barauni Thermal Power Station and Muzaffarpur Thermal Power Station. The power generating from these units is not sufficient and, therefore the Board purchased from other sources in order to meet the requirements of power supply to its consumers. The sources from which the Board purchases power are Damodar Valley Corporation, National Thermal Power Corporation, Tenughat Vidyut Nigam Ltd., Uttar Pradesh Electricity Board, Orissa State Electricity Board, Power Grid Corporation of India Ltd. According to the Board, the power purchased from outside sources forms the bulk of the total power supplied by the Board. In other words, power generated by the generating units of the Board is much less in comparison to the purchased power from outside sources.

4. The Tariff framed by the Board in exercise of its powers conferred upon it under the provisions of Section 49 of the Electricity (Supply) Act, 1948 (in short the ‘Act’) vide Tariff Notification dated 21.6.1993 published in the Bihar Gazette on 23.6.1993 which came into effect from 1.7.1993 prescribes rates for supply of power to the consumers of the Board. Because of infrequent revision of tariffs and in order to neutralize increase in the cost sof generation and purchase of power, the 1993 Tariff provides for levy and collection of fuel surcharge from the consumers of the Board.

5. It is submitted that fuel surcharge is a part of tariff and, in reality, a surcharge levied to meet the increased cost of generation and purchase of electricity. This Court in a number of decisions has upheld levy of fuel surcharge.

6. The 1993 Tariff provides for a formula for levy and collection of fuel surcharge from the consumers of the Board from time to time. The validity of the formula for levy of fuel surcharge has been upheld by this Court in Bihar State Electricity Board’s case (supra).

7. Section 49 of the Act empowers the Electricity Board to frame tariff and lay down the terms and conditions of supply of electricity as it thinks fit. In exercise of the said power the Bihar State Electricity Board (hereinafter referred to as the ‘Board’) framed tariff vide notification dated 21.6.1993, published in the Bihar Gazette on 23.6.1993 superseding the earlier tariff notifications dated 26.8.1991 and 3.7.1992. The tariff notification dated 21.6.1993 is effective from 1.7.1993. Under clause 16.10.1 of the said tariff the consumers of the categories specified therein are required to pay operational surcharge at a rate to be determined every year in accordance with the formula prescribed, in addition to other charges as laid down in the tariff schedule. In terms of clause 16.10.2 the operational surcharge consists of two elements (i) fuel surcharge and (ii) other operational surcharge. Clause 16.10.3 lays down the formula for determining fuel surcharge applicable during the financial year in terms of paise per unit. Clause 16.10.4 prescribes the formula for determination of ‘other operational surcharge’. It may be mentioned here itself that the provision regarding ‘other operational surcharge’ has been held to be arbitrary and struck down. Clause 16.10.5 provides that the operational surcharge for a financial year shall be calculated by the Board after the expiry of the financial year. Till actual calculation of the operational surcharge for a financial year is made, operational surcharge during the fi













































































































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