The action of the State and its instrumentalities must be informed by reason and must satisfy the test of reasonableness, and any action uninformed by reason is arbitrary.

V. Jagannathan, J.—Shifting of 500 KV transformer from the second respondent's place to the first respondent's place by the Karnataka Power Transmission Corporation Limited (appellant herein) has given rise to this lis. The first respondent aggrieved by the shifting of the transformer to his place, approached this Court in Writ Petition No. 22906 of 2001 ( S. Jogindar Singh Sabarwal Vs. The Karnataka Power Transmission Corporation Ltd. (KPTCL) and Others, AIR 2004 Kant 141 ) and succeeded in getting a direction from this Court to the appellant herein to shift the transformer to its original place. Aggrieved by this order of the learned Single Judge, the appellant has come up before us for relief.

2. Briefly stated, the facts giving raise to this appeal are that the first respondent is the owner of premises bearing Nos. 19 and 20, H. Siddaiah Road, opposite to Urvashi Theatre, Bangalore, and with the establishment of a hotel with a commercial complex in the said premises, the first respondent sought power connection from the appellant and the said request was complied by according sanction to install 40 KV with 10 HP transformer in the premises of the first respondent. One of the requirements for the installation of the transformer is that space measuring 20' x 15' has to be provided with easy access from the main road. On such space being made available, the appellant erected the transformer and power supply was also given by the end of January 1999.

3. The trouble started, when, within a month of the installation as aforesaid, the officials of the appellant replaced the transformer by installing a bigger transformer with the capacity of 500 KV in the same place and this made the first respondent to make a request to the appellant to shift the 500 KV transformer, mainly on the ground that the first respondent was facing considerable difficulties and disruption of power supply and also the children playing in the vicinity were exposed to risk and danger. It is the stand of the first respondent that the action of the appellant in installing a bigger transformer of 500 KV was motivated by mala fide intention inasmuch as the appellant wanted to favour the 2nd respondent-Urvashi Theatre and therefore, the appellant removed the transformer from Urvashi Theatre and put it in the premises of the first respondent.

4. Aggrieved by the said action on the part of the appellant, the first respondent preferred Writ Petition No. 22906 of 2001 before this Court praying for a direction to the appellant to remove the 500 KV transformer from his premises and replace in the original 40 KV transformer.

5. The learned Single Judge after considering the averments made in the writ petition and taking note of the objections filed by the appellant herein came to the conclusion that the action on the part of the appellant was not sustainable in law inasmuch as the appellant had misused the power vested in it in order to favour the second respondent-Urvashi Theatre and the entire manner in which the appellant put up the transformer in question without giving notice to the first respondent smacks of the power not being exercised in a bona fide manner and therefore, allowed the writ petition and directed the appellant herein to remove the transformer in question and put it back in its original place and restore the transformer which was originally installed in the premises of the first respondent.

6. Aggrieved by the said order of the learned Single Judge, the appellant has preferred this appeal.

7. Learned Counsel Sri Naganand appearing for the appellant contended that the appellant has got the power to shift the transformer from one place to another place, keeping in view the interest of the public. Since the transformer which was installed at Urvashi Theatre was found to have caused great inconvenience to the cine goers and in view of the large number of persons going to the theatre and as it was also felt that there is likelihood of danger being caus