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2025 Supreme(Pat) 175

IN THE HIGH COURT OF JUDICATURE AT PATNA
A. ABHISHEK REDDY, J.
CWJC No.20728 of 2021
(18.11.2024)
Magadh Sugar and Energy Ltd. ... Petitioner
vs.
Bihar State Electricity Board & Ors. ... Respondents

Advocates:
For the Petitioner: Mr. Ashish Giri.
For the Respondents: Mr. Vinay Kirti Singh.

Headnote:

Electricity Act, 2003 – Section 49 – Recovery of Transmission Loss – In agreement entered between parties, meters were supposed to have been installed at grid sub-station and basing on meter reading only, bills of petitioner ought to have been granted – However in this case, meters have been installed at place of generation by department themselves – It is not the case of authorities that meters were installed by petitioner himself – Irrespective of fact whether meters were installed at place of generation or at place of grid sub-station, fact remains that authorities have kept quiet for a period of more than 13 years before they have taken a decision to recover transmission loss, authorities cannot blame petitioner for lapses committed by them at the time of installation of meters – Authorities having kept quiet cannot seek to recover transmission losses after a lapse of more than 13 years – Impugned letters quashed – If any amount has been recovered from petitioner by authorities, they shall take necessary steps for refund of same immediately – Writ Petition allowed. (Paras 7 to 11)

A. Abhishek Reddy, J. – Heard the learned counsel for the parties.

The present writ petition has been filed for the following relief(s): –

“(i) To issue a writ/order/ direction in the nature of certiorari for quashing the letter no. 166 dated 11.10.2021 issued under the signature of the Chief Engineer (Commercial), South Bihar Power Distribution Company Ltd. addressed to the Electrical Executive Engineer, Transmission Division Gopalganj and copy forwarded to the petitioner in terms of which relying upon the letter of the Chief Engineer (Commercial) NBPDCL no. 303 dated 14.10.2020 transmission loss has been directed to be calculated and deducted and that further direction given that till the bill meters are installed as the grid sub-station, the invoices from September onwards will be admitted only after adjustment of applicable transmission loss of 132 KV and even, all previous invoices to be readmitted taking account of transmission loss including the upcoming monthly bills to be verified only after adjustment of applicable transmission loss. (Annexure-5 Pg.118).

(ii) To issue a writ/order/ direction in the nature of certiorari for quashing the letter no. 303 dated 14.10.2020 issued under the signature of the Chief Engineer (Commercial), North Bihar Power Distribution Company Ltd. addressed to the Electrical Executive Engineer, Transmission Division, Gopalganj, BSPTCL wherein, it has been directed to calculate the quantum and amount of transmission losses deductible ab-initio taking into account the transmission loss occurring between the grid station of BSPTCL/NBPDCL and the generator. (Annexure-4 Pg. 116).

(iii) To hold and declare that no transmission loss in relation to the supply of energy provided by the petitioners i.e. the generators to the respondent BSPTCL/NBPDCL can be deducted from the invoice of the petitioner from the date of supply pursuant to the power purchase agreement dated 23.08.2011 till the date the meters remain installed in the premises of the petitioner and are not move to the grid station of BSPTCL /NBPDCL.

(iv) To hold and declare that the action of the respondent in seeking recover the transmission loss from the invoice of the petitioner that too with retrospective effect is not only contrary to the terms of the purchase agreement but also becomes wholly without jurisdiction and violative of Article 14 & 19(1) (g) read with Article 300A of the Constitution of India.

(v) To pass appropriate interim / exparte ad interim relief during the pendency of the writ application preventing the respondent from taking any coercive steps against the petitioner in relation to recovery of the transmission loss from the past and deduction of the same from the current bills pursuant to the impugned letter dated 14.10.2020 and 11.10.2021 and/or accordingly, the same may kindly be stayed.

(vi) To any other relief or reliefs for which the petitioner is found to be entitled in the facts and circumstances of the case.”

3. It is the case of the petitioner that it is a sugar industry having electricity generating unit. That the petitioner has entered into an agreement with the respondent the then Electricity Board for sale/ supply of the power from its captive power unit. That the bill meters were installed at the factory site of the petitioner by the respondents and the same continued to be used even after the subsequent power purchase agreement dated 23.08.2011 was entered between the parties. That right from the year 2007, the meters were situated at the power station of the petitioner’s site and the meter readings were verified, bills generated and amounts adjusted/ paid accordingly. That vide letters dated 14.10.2020 & 11.10.2021, the authorities in a unilateral manner without putting the petitioner on prior notice have taken a decision to recover the transmission loss charges from the year 2007 till the current due.

4. Learned counsel appearing on behalf of the petitioner has stated that the authorities having entered into a

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