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High Court Of Delhi
SURI AND SURI PRIVATE LIMITED - Appellant
Versus
DELHI ELECTRICITY SUPPLY UNDERTAKING - Respondent
Interim Application 6387 of 1991
Decided On : 07/17/1991
ARBITRATION - INTERIM INJUNCTION - ELECTRICITY SUPPLY - TARIFF - EQUIPMENT CHARGES - NORMATIVE CONDITION CHARGES - CONTRACT OUT OF STATUTE - VALIDITY - SECTION 283 OF DELHI MUNICIPAL CORPORATION ACT, 1957 - SECTION 49 OF ELECTRICITY (SUPPLY) ACT, 1948.
Fact of the Case:
The petitioner, a cold storage facility, had a bulk supply agreement with the respondent electricity board. The petitioner requested a reduction in load, which the respondent agreed to, subject to certain terms and conditions, including a reduction in transformer capacity and the payment of equipment charges and normative condition charges. The petitioner challenged the imposition of these charges, arguing that they were not authorized by the agreement or by statute.
Finding of the Court:
The court held that the normative condition charges were authorized by Section 283 of the Delhi Municipal Corporation Act, 1957, which empowered the respondent to levy charges for the supply of electricity at rates fixed by the Delhi Electric Supply Committee. The court also held that the equipment charges were not authorized by the agreement or by statute, and that the petitioner was not liable to pay them.
Issues: 1. Whether the normative condition charges were authorized by statute. 2. Whether the equipment charges were authorized by the agreement or by statute.
Ratio Decidendi: 1. Section 283 of the Delhi Municipal Corporation Act, 1957 empowered the respondent to levy charges for the supply of electricity at rates fixed by the Delhi Electric Supply Committee. 2. The agreement between the parties did not authorize the imposition of equipment charges, and there was no statutory provision authorizing such charges.
Final Decision: The court granted an interim injunction restraining the respondent from disconnecting the petitioner's electricity supply, except to the extent of the equipment charges. The court also allowed the petitioner to amend its petition to challenge the imposition of the equipment charges.
( 1 ) THIS order will dispose of two applications being I. A. Nos. 4048 and 6387 of 1991 in Suit No. 2588 of 1988 while I. A. No. 4048 of 1991 is petitioner s application under Schedule II read with Section 41 of the Arbitration Act, 1940 for grant of interim injunction restraining the respondents from disconnecting power and electricity supply under K. No. BS 289 (XI 390) installed at B-33, Lawrence Road Industrial Area, Delhi, I. A. 6387 of 1991 is an application under Order 6 Rule 17, Civil Procedure Code for amendment of the petition under Section 20 of the Arbitration Act.
( 2 ) THE relevant facts as appear from the pleadings of the parties may be stated thus: The petitioner is having a cold storage for which the electric power was being supplied by the respondent under bulk supply agreement dated October 24, 1975. Under the terms and conditions of the said agreement, respondent No. 1 agreed to supply load of 330 H. P. (Industrial Power) plus 5 KW (Lighting) at the cold storage. The petitioner did not want to remain in the category of large industrial power consumer and as such requested the respondents to reduce the load. The respondents vide their letter dated February 28,1986 communicated their decision to reduce the load from 330 H. P. (IP) and 5 KW (Lighting) to 120 HP, inter alia, on the following terms and conditions:,
"1. The existing 11 KV S/stn. will remain in the same location. However, existing transformer will be handed over to DESU free of cost. Further, maintenance of HT line and transformer will be carried out by DESU and as such you will not be required to pay the necessary maintenance and rental charges on HT switch gear and transformer etc. The LT connection for meeting your reduced load requirement shall be provided from the same transformer and accordingly nec. metering will be done on LT. 2. xxxxxxxxxxxxxxxxxxx 3. In lieu of your handing over of your transformer to DESU free of cost, your lien for sanction of load upto 200 KW on LT will be kept for future. 4. xxxxxxxxxxxxxxxxxxx 5. xxxxxxxxxxxxxxxxxxx 6. All outstandings dues against the present LT connection will have to be cleared and certificate to that effect to be submitted from A. XEN (MR)".
( 3 ) PURSUANT to the aforesaid letter of the respondents, the petitioner in order to comply with the terms and conditions thereof gave its undertaking on July 20, 1988. It is averred by the pettitioner that despite the letter on February 28, 1986 and the undertaking furnished by it, reduction in load was not carried out by the respondents. In C. M. No. 4016 of 1988 in C. W. P. No. 2533 of 1985 a Division Bench of this Court by its order dated September 8, 1988 directed the respondents to reduce the load within four weeks. Accordingly the load was reduced in terms of the letter of the respondents dated February 28, 1986. Despite the reduction in load the petitioner was not satisfied with the monthly bills being raised by the respondents.
( 4 ) IN the main petition under S. 20 of the Arbitration Act, being Suit No. 2588 of 1988 the petitioner has raised a dispute with regard to provisional supplementary bill dated October 11, 1988 which was for the period July, 1985 to August, 1988 on the ground that the demand was illegal and the amount was neither recoverable nor payable by it. In I. A. No. 4048/91 the petitioner points out that besides usual charges for consumption of energy the respondents have issued two bills for the month ending March, 1991 in which euipment charges and normative conditions charges (surcharge) are being levied. According to the petitioner the respondents are only entitled to charge @ Rs. 0. 75 paise per unit consumption plus meter rent and electricity tax. In the petition it is averred that the petitioner is not liable to pay equipment charges and normative condition charges as this is violative of the terms and conditions contained in the letter dated February 28, 1986. The following are the details of the equipment
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