GAUHATI HIGH COURT
J. N. SARMA, J.
Assam State Electricity Board, Guwahati and others -Appellant
Versus
Borjalinga Tea Company, and another -Respondent
F.A. No. 3 of 1987
Decided On : 10-04-1997
ELECTRICITY ACT - PENAL BILL - SECTION 48, 49 - VALIDITY OF PENAL BILL - MALPRACTICE - STANDBY MOTORS - CONSUMPTION OF ELECTRICITY BEYOND SANCTIONED LOAD - COURT FEES - JURISDICTION - SECTION 8(II)(B)(C) AND (G), 8(III)(C)(I) OF TERMS AND CONDITIONS OF SUPPLY OF ELECTRIC ENERGY 1981 - INTERPRETATION AND APPLICATION.
Fact of the Case:
The plaintiff, a tea company, filed a suit against the ASEB challenging the legality of a penal bill of Rs. 1,12,748.79 P. for exceeding the sanctioned load of 250 KW and consuming 231.4 KW. The plaintiff claimed that the penal bill was prepared on the basis of an inventory that included standby motors without prior approval from ASEB.
Finding of the Court:
The court found that the plaintiff had installed standby motors without obtaining prior approval from ASEB and had consumed electricity beyond the sanctioned load. The court also found that the penal bill was prepared in accordance with the terms and conditions of supply of electric energy and that the plaintiff had committed malpractice by exceeding the sanctioned load and installing additional machinery without permission.
Issues: 1. Whether the penal bill submitted by the defendant is illegal and void? 2. Is there any ground for granting an injunction? 3. Is the plaintiff entitled to the relief sought in the suit?
Ratio Decidendi: The court held that the penal bill was valid and that the plaintiff was liable to pay the amount claimed by ASEB. The court relied on Section 48 of the Indian Electricity Act 1910 and the terms and conditions of supply of electric energy 1981, which provide for the imposition of penalties for malpractice, including exceeding the sanctioned load and installing additional machinery without permission.
Final Decision: The court set aside the judgment and decree of the trial court and dismissed the plaintiff's suit with costs.
JUDGMENT :- This first Appeal has been filed against the judgment and decree dated 9-8-96 passed by the learned Asstt. District Judge No. 2, Cachar at Silchar decreeing the suit by which the penal bills as mentioned in para 17(a) of the plaint was declared to be illegal and void. It was further decreed that the defendants are not entitled to realise any amount in such bills. The suit was also decreed for permanent injunction. The plaintiff Tea Co. brought a suit against the ASEB and others and their case was that the amount of penal charge of Rs. 1,12,748.79 P. demanded by the penal bills dated 21-8-94 is illegal and that further claimed that there was consumption of electricity of 231.4 KWs in place of sanction limit of 250 KW is illegal. It was further stated that this penal bill was prepared on the basis of inventory prepared by the officers of defendant during their visit on 8-11-83. The said inventory illegally included the stand-by motors and as such the suit was filed. A written statement was filed and in paras 11, 13, 14 and 17 it is stated as follows :
"11. The statements made in para 4 of the plaint is rather distorted and misrepresented. The plaintiff never applied to the defendants for setting up of such standby motors and machineries, which as per the rules and agreed terms of the Board and the plaintiff, requires prior approval. The plaintiff never applied to the defendants for any new installation as has been admitted by the plaintiff in the said para as all installations need prior approval.
13. The statement made in para 6 is not altogether correct and true. The motor testing Inspector visited the factory of the plaintiff on 8-11-83 and found some motors and machineries were newly installed by the plaintiff without any approval of the defendants and moreover all the newly installed motor and machineries alleged to be standby were connected to the electrical system (for receiving energy). The M.T.1. prepared an inventory of all the machineries and motors, in presence of the person who was at that time incharge of the factory and he had also put his signature on the inventory and on the basis of the inventory so prepared, the penal bill and the notice, as has been mentioned by the plaintiff in the said para was served upon the plaintiff as the plaintiff had violated the provisions as setforth in the General Clauses of supply. The plaintiff had no authority to connect the installed machineries and motors with the electricity supply line. All the installations within the factory campus of the plaintiff belongs to the defendant Board.
14. The averments made in paras 7, 8 and 9 of the plaint are not true and correct. From a 250KW Transformer, 231.4 KW energy can easily be consumed and the plaintiff has done so. The M.T.I. who visited and made the inventory had all authority to inspect, as the entire installations of the electrical line and etc. belonged to the Board and the plaintiff had no authority to challenge such inspection.
17. The notice and the penal bill were served upon the plaintiff by the defendants as per provisions contained in the General Conditions of Supply and Schedule of Tariff, which guides the defendants. The plaintiff entered into the contract as per provisions of the said rules and had agreed to abide by the same. And as such, the plaintiff is to either pay the penalty or to face disconnection."
2. On these pleadings, 5 issues were framed. Issues No. 3, 4 and 5 are relevant for the purpose of disposal of this suit. They are quoted as follows :
"1........................
2.......................
3. Whether penal bill submitted by defendant are illegal and void as alleged in the plaint.?
4. Is there any ground for granting injunction ?
5. Is the plaintiff entitled to relief sought in the suit ?
Following witnesses were examined :
PW 1 Durga Datta Tiwari, the Manager of the garden.
DW 1 Benimadhab Das Choudhary, the Executive Engineer of ASEB.
3. A
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