2002 Supreme(Pat) 924
PATNA HIGH COURT
Aftab Alam, J.
Jayanti Industries
Versus
Bihar State Electricity Board
Civil Writ Jurisdiction Case No. 2767 of 2002 ;
Decided On : AUGUST 26, 2002
Headnote:Electricity (Supply) Act, 1948-Section 49-Read with-Bihar Industrial Policy, 1995Petitioner undertaking expansion of its units took H.T. connection under an agreement with Board initially for 3 years, and given exemption from A.M.G. charges as per 1995 policy-After two years, it wrote to the Board for disconnecting H.T. line-On disconnection the unit is not entitled to exemption if it has been unable to run the expanded unit even for full period of contract-Taking any other view would be contrary to objects of Industrial Policy and also encourage unhealthily practices. (Paras 6, 7)
Electricity Act, 1910-Section 24-Requirement seven days notice before disconnection-Notice dt. 6.6.2000 requiring payment of dues by 13.6.2000 or else disconnection-Two further notices dt. 9.7.2000 and 14.7.2000 requiring payment of dues by 13.7.2000 and 22.7.2000 respectively-Notice dt. 9.7.2000 received by petitioner on 15.7.2000 on which date line disconnected-Earlier notice dt. 6.6.2000 is not stale and cannot be deemed superseded by latter notices, for there is very little gap between first and latter notices-Disconnection not illegal petitioner liable for payment after disconnection. (Paras 11, 12)
1. The petitioner before this court is a partnership firm which was running an industrial unit, manufacturing plastic containers under the name of M/s Jayanti Industries. The petitioner firm has filed this writ petition challenging the action of the Board in disconnecting the high tension electrical connection given to its unit on 15.7.2000 for non-payment of dues and in raising a demand for Rs. 6,38,754. 54 paise vide letter no. 779/Rev, dated 6.9.2001 issued by the Electrical Superintending Engineer, Muzaffarpur Circle, Muzaffarpur. According to the petitioner, the disconnection of its electrical line was illegal because it was effected without giving the firm seven clear days notice and the demand raised by the Superintending Engineer was also illegal, invalid and unenforceable against the petitioner.
2. The facts of the case are brief and without any controversy. The petitioner firm had an industrial unit manufacturing plastic containers from before. In the year 1997 the firm undertook expansion of the unit. On 17.4.1998 it entered into a high tension agreement with the Board with the contract demand of 150KVA. The supply of electricity under the agreement commenced from 27.5.1998. It is significant to note here that in terms of the Industrial Policy, 1995 of the State Government and the circular issued by the Board in pursuance to the Industrial Policy the petitioner firm was granted exemption from payment of Annual Minimum Guarantee Charges.
3. It is also to be noted that subclauses (a) and (b) of the clause 9 of the agreement provides that the agreement would remain in force for a period of three years from the date of commencement of supply of electricity and the consumer, in order to terminate the agreement, would be obliged to give one years notice to the Board.
4. The firms venture in the expansion of the unit perhaps did not yield the desired results and the petitioner firm, there fore, decided not to continue with the 150 KVA connection taken by it from the Board. The petitioner, accordingly, gave a notice under clause 9 of the H.T. Agreement on 29.6.2000. It is to be noted here that the three years period from the date of commencement of the supply was to come to an end on 26.5.2001 and the one year notice period under the notice, dated 29.6.2000 would come to an end on 28.6.2001. The provisions of clause 9 (a) and (b) would have been satisfied therefore, had the notice asked for disconnection of the line w.e.f. 29.6.2001, i.e., on the expiry of the notice period. But in this notice the petitioner made a request for immediate disconnection of the 150 KVA line with the offer that its liability for the notice period may be adjusted against the security deposit made by the firm. In the notice a further request was made for replacement of the 150 KVA line by a low tension connection of 25 H.R for which it was stated that the petitioner firm would be making an application separately. The notice given by the petitioner is rather important and it will be, therefore, useful to reproduce it in extenso : Regd. Post 29th June 2000. The Electrical Executive Engineer Hajipur Electric Supply Division Hajipur Sub: Notice for termination of agreement dated 17.4.98 Consumer No. HT 26. Sir, We hereby give you notice for termination of the agreement dated 17.4.98 executed between the Bihar State Electricity Board (hereinafter called the Board) & ourselves, under clause 9 (a) thereof. The Electric supply under this agreement was commenced on 27.5.98 and the first three years of compulsory availing of supply shall expire on 26.5.2001, whereas this twelve months notice shall expire on 31st July 2001. We shall have no liability under this agreement after 31 st July 2001. We are already exempted from payment of minimum base under the tariff in terms of the instruction contained in the Boards letter No. 652 dated 11.10.96. We are making a separate application for giving Electric Supply to 25 h.p. load under L.T.I.S. agreement and