IN THE HIGH COURT OF JUDICATURE AT PATNA
G. ANUPAMA CHAKRAVARTHY, J.
CWJC No.1773 of 2009
(20.1.2025)
M/s Gangotri Iron and Steel Co. Ltd. ... Petitioner
vs.
Bihar State Power Holding Company Ltd. & Ors. ... Respondents
Bihar Electricity Duty Act, 1948 – Section 107 – Payment of Electricity Bill – Levy of Delayed Payment Surcharge on payment of Fuel Surcharge by way of interest and levy of Delayed Payment Surcharge on the amount of minimum guarantee bill which was subject matter of adjudication under Clause 13 of the Agreement – The petitioner did not pay the Delayed payment Surcharge for a period of 10 months, during which payments were made in installments – The amount of Delayed Payment Surcharge was not specified by the respondent company but was included in the regular bill and remained pending – In the light of this issue, a decision was taken by the Board/Company that no compensation charge would be payable if the consumer had been allowed to pay the amount in installments – From the circular it is clear that this matter had been pending before the Board for a long time, with the intention of benefiting consumers who had not paid the compensation charges – paragraph 5 of the circular also clarified that if consumers had paid part of the compensation charge on the unpaid balance of the installments of the Fuel Surcharge, they would not be required to pay any further compensation charge – lastly, the petitioner filed a representation requesting the issuance of a revised bill excluding the amount of belayed Payment Surcharge as the petitioner was offering to pay a lump sum amount in light of the Board's Office Order No. OSD/Rev./Misc./308/03/1280 dated 12.04.2006 (One Time Settlement Scheme 2006) – The representation was ultimately rejected by the Financial Controller (Revenue) – Under similar issue, the High Court has set aside the order of the CGRF (Consumer Grievance Redressal Forum) and the learned ombudsman – hence, that part of the provisional bill, demanded by the respondent from the petitioner is arbitrary and illegal – Furthermore, the order passed by the Financial Controller – Revenue is also not sustainable in law – Accordingly, the Provisional Bill as well as the order of the Financial Controller set aside – Write petition allowed. (Paras 18 to 20)
M/s Balajee Ingots India Pvt. Ltd. Vs. Bihar State Electricity Board, CWJC No. 9493/2013 – Relied upon.
Dhiyan Singh Vs. Jugal Kishore, 1952 SC 145; Gaya Roller Flour Mills Pvt. Ltd. Vs. Bihar State Electricity Board, 1995 (2) PLJR 715; M/s Iceberg Industries Ltd Vs. BSEB, (2010) 4 PLJR 574; Gaya Roller Flour Mills Pvt. Ltd. vs Bihar State Electricity Board, 1995 (2) PLJR 715 – Referred to.
G. Anupama Chakravarthy, J.—The petitioner has filed the Writ petition for the following reliefs:—
“(i) For quashing of that part of the Provisional Bill for the month October issued on 4th November 2008 (Annexure- 11) by which the Respondents have arbitrarily raised a demand of arrears of Delayed Payment Surcharge [Delayed Payment Surcharge] from the Petitioner as being wholly illegal, without jurisdiction;
(ii) For restraining the Respondents from taking any coercive measure including the connection of Electricity Line of the Petitioner for recovery of the arrears of payment of Delayed Payment Surcharge as the demand was neither legal nor justified;
(iii) For a direction to the Respondents to accept the Current Monthly Bill and not to insist for payment of any further installment of the Delayed Payment Surcharge as demanded by the Respondents;
(iv) For a direction to the Respondents to rectify the Bill of Delayed Payment Surcharge [Delayed Payment Surcharge] on all the issue like Fuel Surcharge, Annual Minimum Guarantee etc. and to settle the matter on this issue without any further delay; and for any other relief(s) for which the Petitioner may legally be found entitled to in the facts & circumstances of the present case.
(v) For quashing of the order dated 28.1.2013 passed by the Financial Controller - Revenue by which he has rejected the Representation for Waiver of Delayed Payment Surcharge charges on Fuel Surcharge, claim related to Delayed Payment Surcharge on AMG Bills and claim related to Waiver of Delayed Payment Surcharge under OTS Scheme, 2006, as being wholly illegal, arbitrary, discriminatory and hence liable to be quashed.
(vi) For a direction to the Respondent Board to delete the Delayed Payment Surcharge charges on the A.M.G. bills as subsequently the AMG bills were found to be incorrect and rectified and, therefore, no Delayed Payment Surcharge could have been charged on that.”
2. It is relevant to mention here that the petitioner had filed I.A. No. 1636 of 2013 for amendment in the main Writ application to amend the prayer portion in paragraph 1 by additional relief Nos. V and VI, which was allowed by this Court by order dated 14.03.2013.
3. The brief facts culled out of the petition are that the petitioner is a company incorporated under the Companies Act, 1956 and is a consumer of Respondent Company bearing Consumer No. 182516 HT having a Contract Demand of 1000 KVA for Rolling Mill Unit at Phulwarisharif, Khagaul, Patna. Respondent No. 1 is a Power Distribution Company, erstwhile known as Bihar State Electricity Board, indulging in selling of power as licensee. At the outset the Learned counsel for the petitioner submits that in the present case only two issues are involved, i.e., (I) levy of Delayed Payment Surcharge on payment of Fuel Surcharge by way of interest and (ii) levy of Delayed Payment Surcharge on the amount of minimum guarantee bill which was subject matter of adjudication under Clause 13 of the Agreement.
4. The petitioner’s grievance is that the respondent company had increased the fuel surcharge by charging interest, which resulted in an enhanced fuel surcharge liability for the petitioner. The respondent company raised a fuel surcharge bill dated 21.09.2000 for Rs. 30,52,628/- for the period from April 1995 to July 2000.
5. It is submitted on behalf of the petitioner that the respondents allowed all Industrial Consumers to make the payment of the fuel surcharge in 10 installments, starting from November 2000 to September 2001. Each installment was for Rs. 3.05 lakhs, and the petitioner paid all the installments. It is further submitted on behalf of the petitioner that the petitioner did not pay the Delayed Payment Surcharge for the 10-month period, during which the payments were made in installments. The amount of Delayed Payment Surcharge was not specified by the respondent company, but was included in the regular bill and remained pending. Thereafter, considering the issue, the Board/Company de
Gaya Roller Flour Mills Pvt. Ltd. vs. Bihar State Electricity Board
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