( 1 ) IN these writ petitions filed by High Tension Electricity Consumers, there are two questions which have to be answered by this Full Bench. They are :-- (1) When the electricity charges are permitted to be paid in instalments, whether in addition to interest under para 34 of the Terms and Conditions of Supply, additional charge (also called as surcharge ) as contemplated by para 32. 2. 1 is payable simultaneously on the outstanding amount ? (2) How and in what manner the interest has to be calculated under para 34 i. e. , whether the entire amount payable on the date of grant of instalments should bear interest and surcharge at the prescribed rate till the last date of payment or whether it should be calculated with reference to the remaining amount payable after deducting the amount paid in instalments from time to time ?

( 2 ) AS the learned Judges constituting the Division Bench felt that the view taken by the same Division Bench in W. P. No. 8287 of 1988 is open to question and the contentions raised are not without substance, they thought it fit to refer these writ petitions to a Full Bench. That is how we are seized of these cases.

( 3 ) IN exercise of powers conferred by Section 49 of the Electricity (Supply) Act, 1948, the Andhra Pradesh State Electricity Board (hereinafter referred to as the Board ) framed the Terms and Conditions of supply of electrical energy. An unilateral right has been reserved by the Board to vary the terms and conditions and to revise the tariff and other charges. Such power of the Board has been recognised and upheld by the Supreme Court in Hyderabad Engineering Industries case, ATR 1988 SC 985. Para 26 of the terms of supply requires all consumers to execute agreements governing the supply of energy in the form prescribed by the Board from to time.

( 4 ) PARA 34 (a), which is of immediate relevance to us, reads as follows: "34. Payment of dues of the Board in instalments: (a) The Board may permit a consumer when he so requests, to pay charges for electricity supplied, consumption deposit or any other charges in instalments provided that, where such request is granted the consumer shall in addition to any additional charges leviable due to belated payment as per the clause 32. 2. hereof under the other terms and conditions of supply, pay interest charges at 24% per annum, on the amount outstanding out of the charges allowed to be paid in instalments. "the rate of interest was enhanced from 18% to 24% by B. P. Ms. No. 420, dated 23-3-1992 with effect from 1-4-92. Many of the writ petitions herein relate to the period prior to enhancement.

( 5 ) AT this juncture, we will notice condition 32. 2. 1. (a) which is as follows :"bills shall be paid by the high tension consumers within fifteen days and by low tension consumers within fourteen days from the date of the bill failing which the consumer shall be liable to pay an additional charge at the rates as prescribed by the Board from time to time and notified in the Tariff Notifications of the Board. in the case of consumers covered by Card system of billing the payment shall be made in the manner specified in the tariff applicable to such consumers-"

( 6 ) THE present rate of additional charge (or surcharge , for the sake of brevity) is 0. 07 paise per rupee per day, which comes to about 2. 1% per month and 25% per annum. Earlier i. e. , prior to 9-5-1989, the additional charge was 0. 5% per week or part thereof and it works out to 2% per month.

( 7 ) THUS, the interest under para 34 and additional charge for belated payment under para 32. 2. 1 together comes to 49% and before enhancement, it was 42%.

( 8 ) THE first question turns on the interpretation of para 34. The learned Counsel for the petitioners M/s. T. Anantha Babu and D. V. Nagarjuna Babu contend that the phrase "in addition to any additional charges leviable due to belated payment as per clause 32. 2. " has to be construed reasonably and it would only mean that the consumer is li

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