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2004 Supreme(Cal) 326
High Court Of Calcutta
Soumitra Pal
ZILT FORMS PVT LTD - Appellant
Versus
WEST BENGAL STATE ELECTRICITY BOARD - Respondent
W. P. 10070 (W) Of 2002
Decided On : 05/12/2004
Debasish Chattopadhyay, S.K.Kundu, Tapan Kr.Mitra
A statutory body like the WBSEB is bound to comply with the provisions of the Electricity (Supply) Act, 1948, and the Indian Electricity Act, 1910, and is liable to pay interest on the deposited amount for the period of delay in providing electricity connection.
Headnote:
ELECTRICITY SUPPLY - INDUSTRIAL CONNECTION - DELAY IN SUPPLY - INTEREST ON DEPOSIT - WEST BENGAL STATE ELECTRICITY BOARD - Liability to pay interest on the deposited amount for the period of delay in providing electricity connection - Held that the Board is liable to pay interest on the deposited amount for the period of delay.
Fact of the Case:
Petitioner applied for a new industrial electric connection to the West Bengal State Electricity Board (WBSEB) and paid the requisite fee. Despite the petitioner complying with all formalities, the WBSEB delayed the supply of electricity. The petitioner filed a writ petition seeking a direction to the WBSEB to grant the new industrial electric connection and to pay interest on the deposited amount for the period of delay.
Finding of the Court:
The court held that the WBSEB was liable to pay interest on the deposited amount for the period of delay. The court relied on Section 26 of the Electricity (Supply) Act, 1948, and Clause VI of the Schedule to the Indian Electricity Act, 1910, which impose a statutory obligation on the WBSEB to supply electricity within a specified time frame.
Issues: 1. Whether the WBSEB was liable to pay interest on the deposited amount for the period of delay in providing electricity connection.
Ratio Decidendi: The court held that the WBSEB was liable to pay interest on the deposited amount for the period of delay. The court relied on the following principles: * The WBSEB is a statutory body bound by the provisions of the Electricity (Supply) Act, 1948, and the Indian Electricity Act, 1910. * Under Section 26 of the Electricity (Supply) Act, 1948, the WBSEB has all the powers and obligations of a licensee under the Indian Electricity Act, 1910. * Clause VI of the Schedule to the Indian Electricity Act, 1910, imposes a statutory obligation on the WBSEB to supply electricity within one month of receiving a requisition from an owner or occupier of premises within the area of supply. * The WBSEB did not approach the Electrical Inspector for enlargement of time to provide supply nor was prevented by any of the events enumerated in Clause VI of the Schedule to the Indian Electricity Act, 1910. * The reasons cited by the WBSEB for the delay in providing electricity connection were not tenable. * The petitioner and the Unique Forms Pvt. Ltd. are distinct and separate entities, and the petitioner cannot be made to suffer for the default or laches of the Unique Forms Pvt. Ltd.
Final Decision: The court allowed the writ petition and directed the WBSEB to pay interest @ 15% per annum on the sum of Rs. 1,05,625/- to the petitioners for the period from 2. 8. 2001 to 2. 7. 2003. The court also directed the WBSEB to pay costs quantified at Rs. 1,700/- to the petitioners.
( 1 ) THE petitioner company made an application on 26. 8. 99 for new industrial electric connection to the West Bengal State Electricity Board (hereinafter referred to as the said Board) along with the requisite fee of rs. 500/ -. Pursuant to such application the respondent No. 2 by letter dated 20. 7. 2000 being Annexure P-8 to the writ petition, enquired whether the petitioner No. 2 was ready to bear the infrastructural cost as per the rules of the Board to effect the said industrial connection since the existing transformer was unable to cater to the load. Thereafter the respondent No. 2 by letter dated 21. 6. 2001 being Annexure P-11 to the writ application furnished a quotation for Rs. 1,05,625/- being the cost of industrial service connection charges. It was also intimated that agreement and test report were required to be executed before the commencement of supply of power. The said sum of Rs. 1,05,625/-was paid on 2. 7. 2001. An agreement between the petitioner No. 1 and the Board was entered into on 11. 7. 2001 and other formalities were complied with. As the supply of electricity was not effected, the petitioner No. 2 by letter dated 8. 10. 2001 in the form of reminder requested the respondent No. 2 to expedite the matter regarding supply of electricity. Thereafter, another letter dated 4. 3. 2000 in the form of reminder was sent to the respondent No. 2. Being unsuccessful the petitioner by letter dated 21. 3. 2002 demanded justice. Pursuant to such letter the respondent No. 2 by letter dated 26. 4. 2002, being Annexure p-16 to the writ petition intimated as follows :"reference to your Advocate's letter dated 21. 3. 02 on the issue, we like to inform you that necessary steps are being taken to provide you electricity as early as possible".
( 2 ) HOWEVER, as electricity was not provided the petitioner filed the instant writ application. The reliefs which are relevant for adjudication are as follows : " (a) A writ of and/or order in the nature of mandamus be issued commanding the respondents to grant New Industrial Electric Connection to the petitioners' factory premises within 2 weeks from the date of the order to be passed herein and to proceed in accordance with law. (b) A writ of and/or order in the nature of mandamus be issued commanding the respondents to pay interest @ 18% per annum on the deposited sum of rs. 1,05,625/- to the petitioner company for the period from 2nd July, 2001 until grant of New Industrial Electric Connection to the petitioners' factory premises and to give credit of the said amount in the first bill to be raised by the respondents upon the petitioner company after grant of such New Electric connection and to proceed in accordance with law".
( 3 ) THE writ petitioner also prayed for an interim order which is set out hereunder:"interim order directing the respondents, their servants and agents to grant new Industrial Electric Connection to the petitioners' factory premises within 2 weeks from the date of the order pending disposal of the writ petition".
( 4 ) DIRECTIONS were issued for filing the affidavit-in-opposition and the affidavit-in-reply. Affidavits have since been exchanged.
( 5 ) MR. Tapan Kr. Mitra appearing for the petitioner along with Mr. S. K. Kundu submitted he was not praying for an order in terms of prayer (a) as the board in compliance with the order passed on 6th September, 2002 had provided electricity connection on 2. 7. 2003. Mr. Mitra, however, prayed for an order in terms of prayer (b) since production in the said factory suffered due to inordinate delay for no valid reason by the Board in providing electricity connection to the new factory. Prayer was made for payment of interest to the petitioner company @ 18% per annum on the sum of Rs. 1,05,625/- for the period from 2. 7. 2001 that is the date on which the money was deposited for new industrial connection, up to 2. 7. 2003, the date on which such connection was provided.
( 6 ) MR. Debasish
