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1981 Supreme(AP) 100
Andhra Pradesh High Court
Judges : K.MADHAVA REDDY, PUNNAIAH
Poddar Projects Ltd.(Multi Steels) - Appellant
Versus
A.P.S.E.Board - Respondent
W.P. No. 3572/78 etc.
Decided On : 04-10-81
Advocates Appeared :
Mr. V. Jagannadha Rao,Mr. T. Anaotha Babu
Headnote:ELECTRICITY SUPPLY ACT, Secs.49, 78-A and 79 and Clause 41 of the Terms and Conditions of B. P. Ms. No. 690 dt· 17-9-1975 and B. P. Ms.896 dt. 15-8-77 and G. O. Ms. No. 832, dt. 2-11-1977 giving concession tariff to certain Steel Plants Direction issued by Government in G. O. Ms. 832 granting concessional tariff - Not binding on the Electricity Board has Power to collect minimum charges - Government can withdraw the concession granted earlier without notice to the consumers - It does not amount to promissory estoppel.
HELD: Supply of Electricity being a matter governed by Section 49 and the Regulations made under the Act, is outside the purview of Section 78-A and is a matter outside the domain of the State Goverf1ment and no binding directions can be issued in this behalf to the Electricity Board. G. O. Ms. 832. dt. 2-11-77 is not a directive issued under Sec. 78-A and in any event, is not binding on the Electricity Board so as to make it obligatory upon the Board to extend concessional tariffs to all or any of the mini steel plants whether named in the said G. O. or not. That G. O. does not vest the Consumers with any legal right so as to seek a Writ of mandamus against the other contracting party, viz, the State Electricity Board.
The liability to pay the minimum charges is a liability incurred under the Contract and is quite reasonable. Under the G. O. neither the Government directed that the consumer be released from the said obligation nor could it have so directed under Sec 78-A of the Act. The order in the said G. O. suggesting the grant of concessions to mini steel plants does not absolve the consumers of their liability under the contract or make it obligatory upon the Electricity Board to release the amount only in accordance with the concessional rate mentioned therein and prohibit them from collection the minimum charges and the consumption charges as per the regulations and the agreement.
In view of the circumstances in which the concession was granted the grounds on which the Electricity Board had apposed the grant of concession and the circumstances which lead to the making of necessary investigation of the matter by setting up 8 Committee resulting in ultimate withdrawal of the concession it is 8 case in which even if the earlier G.O. operates as a promise, neither the Government nor the Electricity Board should be held bound by it and be compelled to give effect to it on any ground of promissory estoppel.
( 1 ) THIS batch of Writ Petitions by some of the mini Steel plants of Andhra Pradesh are directed against the Andhra Pradesh State Electricity Board (for short Electricity Board) and the Government of Andhra Pradesh. In most of the Writ petitions, the Petitioners pray that B. P. Ms. No. 78 dated 20-1-1978 by which the revised tariff of 12. 02 P per unit was applied to some of the mini steel plants named therein subject to the monthly minimum charges, be declared illegal, void and unenforceable as also Cl, 41 of the terms and conditions of B. P. Ms. No. 690 dt 17-9-75. In some, a writ of mandamus is sought to give effect to G. O. Ms. No. 832 dated 2-11-1977 under which the Government directed occasional power tariff at 0. 11 P. per unit should be made available to five steel plants named in the G. O. for a period of three years from 1-11-1977 to 30-101980 an seek a consequential direction against the Andhra Pradesh State Electricity Board not to give effect to and proceed to collect the bills issued in derogation of that G. O. In some of the other Writ-Petitions, the petitioners pray for a direction to quash G. O. Ms. No. 146 Irrigation and Power dated 12-3-1979 by and under which, the Government accepting the recommendation of the Committee appointed by it, directed to withdraw the power tariff concessions granted to mini steel plants in G. O. Ms. 832 Irrigation and Power dated 2-11-1977.
( 2 ) TO appreciate the contentions raised in this batch of writ petitions, it would be convenient to notice a few relevant facts in their chronological order with reference to W. P. No. 3151/78 filed by M/s Andhra Steel Corporation which is a limited company registered under the Companies Act, 1956. It manufactures an deals in Iron and Steel products. The Electricity Board notified Revised Terms an conditions of Electricity supply in B. P. Ms. No. 690 (Coml,) dated 17-9-1975 with effect from 20-10-1975. Cl. 41 of the Terms and Conditions empowered the board to restrict the consumption of Electricity by consumers. The Board notified the revised tariffs in B. P. Ms. No. 689 dated 17-9-1975 with effect from 20-10-1975. The Petitioner company entered into an agreement with the Andhra Pradesh State Electricity board on 27-11-1975 for availing high tension electric supply, the contracted demand fixed therein being 4,500 K. V. A. The Andhra Pradesh State Electricity board revised the terms and conditions of supply hitherto in force under B. P. Ms. No. 690 (Coml.) dated 17-9-1975 which became effective on 20-10-1975. Due to the failure of the monsoon in the catchment area of Mauchkhund river and operational troubles of Thermal units in the State, restrictions were imposed on the consumption of high tension supply and cuts were imposed to ensure equitable distribution of available power. These restrictions were imposed under B. P. Ms. 297 dated 1-4-1977 under which quota for each unit was directed to be based on the consumption of the particular unit during the month of Oct, 1976 for arriving at 30 percent cut. According to the said formula the petitioners quota was computed at MD 2083 KVA/units 4,26,888. In a further proceeding, B. P. Ms. No. 348, dated 15-4-1977, the board directed the fixation of quota on the recorded consumption from Oct 1976 to Dec. 1976 whichever months consumption was advantageous to the Petitioner. As the Petitioners recorded consumption was higher in Dec. 1976. that was taken for fixing the quota and that worked out to MD 2845 KVA/units 4,64,310 and was communicated to the Petitioner by S. E. (Operation) Visakhapatanam in L. R. No. Rev/r. A. III/asab/d, No. 1138/77 dated 20-4-1977, In the meantime the Board in B. P. Ms. No. 376 dated 23-4-1977 placed the mini steel plants and re-rolling mills under rotational scheme with 20 working days and 10 days of closure so that the workers may not be let down or retrenched during the closure period and addressed them to give their consent, The Petitioners and others
