PATNA HIGH COURT
Nagendra Prasad Singh and P.S.Sahay JJ.
Shriram Bearing Ltd.
Versus
Bihar State Electricity Board, Patna
Civil Writ Jurisdiction Case No. 1237 of 1981 ; 1528 of 1981 ; 1529 of 1981 ; 1462 of 1981 ; 1535 of 1981 ; 1572 of 1981 ; 1533 of 1981 ; 1236 of 1981 ;
Decided On : DECEMBER 8, 1981
(Para 6)
Electricity Supply Act 1948, Sec. 49 - Determination of surcharge - Factors to be considered by Board - Adjustment by Board - Realisation from one type of consumer, not discriminatory - Board can realise full surcharge from consumers who are being supplied electricity at cheaper rate for Industrial purpose. (Para 7)
NAGENDRA PRASAD SINGH, J.
1. The petitioners in these writ applications have questioned the authority of the respondent-Bihar State Electricity Board to issue bills in respect of fuel surcharge at an enhanced rate for the financial years 1979-80 and 1980-81.
2. The petitioners Companies have factories in the different parts of the State of Bihar for which they have entered into agreements with the Bihar State Electricity Board (hereinafter to be referred to as the Board) for supply of high tension line. From time to time notifications relating to tariff have been issued by the respondent-Board in the exercise of powers conferred on them by Ss.46 and 49 of the Electricity (Supply) Act, 1948 (hereinafter to be referred to as the Act). The last tariff, which is in force, was issued on 1-4-1979 setting out the details of the charges which a consumer of the electric energy has to pay. The petitioners are required to pay fuel surcharge as well. In the year 1979 fuel surcharge at a provisional rate of 1 paise per unit was levied which was subsequently increased to 3 paise per unit. However, in the final bill submitted for the financial year 1979-80 it was raised from 3 paise per unit to 6.242 paise per unit. Along with the final bill of fuel surcharge for the year 1979-80 a provisional bill of fuel surcharge for financial year 1980-81 was also submitted to the petitioners Companies at the rate of 8 paise per unit. According to the petitioners, the increase in the rate of fuel surcharge has neither sanction of law nor it has been arrived at in accordance with the procedure prescribed under the aforesaid tariff.
3. The Board has been constituted under Sec. 5 of the Act and one of the functions of the Board as provided in S.18 of the Act is to arrange in co-ordination with the generating companies operating in the State, for supply of electricity that may be required within the State, and for transmission and distribution of the same "in the most efficient and economical manner". Sec. 46 of the Act provides "that a Tariff to be known as Grid Tariff shall in accordance with any requirements made in this behalf be fixed from time to time by the Board." Sec. 49 vests power in the Board to supply electricity to any person upon such terms and conditions as the Board thinks fit and may for the purpose of such supply frame uniform Tariff. Sub-section (2) of S.49 lays down that while fixing uniform tariff the Board shall have regard to factors mentioned therein, i.e., the nature of supply, purposes for which it is required, co-ordinated supply and distribution of electricity within the State in most efficient and economical manner. Sec. 51 authorises the Board to submit provisional bills. Sec. 59 enables the Board to "adjust its tariffs so as to ensure that the total revenues in any year of account shall, after meeting all expenses properly chargeable to revenue . . . leave such surplus, as the State Government may, from time to time, specify". Sec. 61 requires the Board to submit in February to the State Government a statement in prescribed form of estimated capital and revenue receipts, and expenditure for the ensuing year. The State Government has to lay the said statement on the table of the State Legislature. Some of the provisions vest supervisory power in the State Government.
4. In view of Ss.49 and 59, there is no escape from the conclusion that the Board can frame uniform tariff for supply of electricity to the consumers and can also adjust its tariffs so as to ensure that after meeting all expenses detailed in S.59, leave such surplus as the State Government may, from time to time, specify. The nature of the power under S.49 has been examined by the Supreme Court in the case of Maharashtra State Electricity Board V/s. Kalyan Borough Municipality, (AIR 1968 SC 991) where it was pointed out that under S.49, as it now stands, "the Legislature has empowered the Board to frame uniform Tariff and it has also indicated the factors t
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