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1936 Supreme(Cal) 146

CALCUTTA HIGH COURT
R.C. Mitter, J.
Saila Bala Roy and on her death Malti Rose - Appellant
Versus
Chairman, Darjeeling Municipality - Respondent
Decided On : 10-02-1936

The central legal point established in the judgment is that the power to levy minimum charges for electric energy supply can only be exercised through a contract entered into with an intending consumer, as per the provisions of the Indian Electricity Act 1910.

Headnote:

Minimum Charges - Electricity Supply - Indian Electricity Act 1910, Section 6, Section 3, Clause 11-A - The court discussed the provisions of the Indian Electricity Act 1910, particularly Section 6, Section 3, and Clause 11-A, and their interpretation in relation to the levy of minimum charges for electric energy supply. The court emphasized that the Act intended the rights between a licensee and a consumer to be regulated by contract, and that the power to levy minimum charges can only be exercised through a contract entered into with an intending consumer.

Fact of the Case:

The case involved a dispute over the levy of minimum charges for the supply of electric energy by the Municipality to a consumer. The defendant, as the legal representative of the consumer, contested the claim for minimum charges, arguing the absence of a contract to pay such charges.

Finding of the Court:

The court found in favor of the defendant, ruling that the Municipality cannot sue for minimum charges as there was no contract either with the consumer or the consumer's legal representative.

Issues: The key issue revolved around the authority of the Municipality to levy minimum charges for electric energy supply in the absence of a contract with the consumer or the consumer's legal representative.

Ratio Decidendi: The court held that the power to levy minimum charges can only be exercised through a contract entered into with an intending consumer, as intended by the provisions of the Indian Electricity Act 1910.

Final Decision: The judgment and decree of the Small Cause Court in favor of the Municipality were set aside, and the petitioner (defendant) was awarded the costs of the lower Court.

JUDGMENT

R.C. Mitter, J. - This rule, which has been obtained by the defendant, relates to the claim of the opposite party to minimum charges for the supply of electric energy. Dr. D.N. Roy was the owner of a house within the limits of the Darjeeling Municipality known as the "Roy Cot." The said Municipality obtained a license in the year 1913 from the Local Government for the supply of electric energy in Darjeeling. It constructed a plant and began supplying electric energy. Dr. Roy applied about fifteen years ago for the supply of electric energy to his premises and he was required to enter into a written contract before he was allowed the supply. This written contract must have been entered into in pursuance of 01. 6 of the schedule annexed to the Indian Electricity Act of 1910. At the time when the contract was entered between Dr. Roy and the Municipality, there was no clause in the said schedule which, subject to such additions and modification as may be made by the Local Government, was incorporated in every license by the provisions of Clause (f), Section 3 of the said Act. In the year 1922 the Act was amended and a Clause 11-A, was added to the schedule. The clause is in these terms:

A licensee may charge a consumer a minimum charge for energy of such amount and determined in such manner as may be specified by his license and such minimum charge shall be payable notwithstanding that no energy has been used by the consumer during the period for which such minimum charge is made.

2. The license of the Municipality has not been produced, but a copy of the Calcutta Gazette dated 22nd January 1925 has been produced by the plaintiff. The notification dated 19th January 1925 in the Calcutta Gazette runs as follows:

It is hereby notified for general information that, in exercise of the powers conferred by Cl (6), Sub-section (3), Section 4, Electricity Act 1910 (IX of 1910), the Governor in Council is pleased to make the following amendment in Clause 5 of the Darjeeling Electric License, 1913, published under the Public Works Department notification No. 1-M. P. 1, dated 14th July 1913: After Clause 5, Sub-section (b) of the Darjeeling Electric License, 1913, the following shall be added, namely: Provided that where the total charge for energy in any year fall short of Rs. 72 per kilowatt of the total connected load in respect of any one installation connexion to the licensee's distributing system, the licensee may require the consumer to pay a minimum charges for such year at the rate of Rs. 72 per kilowatt of the total connected load of the installation, and where a minimum charge is made for any such year as aforesaid, the licensee shall no charge separately for any energy consumed in respect of such installation during that period, etc.

3. On 12th March 1925 the Municipality passed a resolution authorising the Municipality to levy minimum charges for April 1925 in accordance with the terms of the said notification. Dr. Roy died in 1926 and the defendant petitioner is his legal representative. It is admitted by plaintiff's witness 1, Nikhil Chandra Sen-Gopta, electrical sub-overseer of the Municipality, that agreements for payment of minimum charges were taken from consumers after the introduction of the minimum charges in that Municipality, but no such agreement was taken either from Dr. Roy or after his death from his legal representatives. Accordingly no contract to pay minimum charges has been pleaded by the Municipality in its plaint. In the year 1930-31 the actual consumption of "Roy Oct" was Rs. 3-15-0. A bill for that amount was made out by the Municipality and paid by the consumer on 17th August 1932. On 29th Septembe 1932 a further bill for Rs. 9-0-3 was made out and served on the consumer on 17th October 1932. In the said bill the sum of Rs. 12-15-3 was shown as the minimum charges for the year 1930-31 and the sum of Rs. 3-15-0 which was paid by the consumer previously was deducted and a demand was made for the balan

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