1988 Supreme(Ker) 166

Judges : MALIMATH,K.BHASKARAN
SOCIAL S.G.OF ASSISI SISTERS - Appellant
Versus
KSEB - Respondent
Case No : O.P. No. 4837, 2051 etc. of 1987
Decided On : 04/05/1988
Advocates Appeared :
Kurien Joseph; K.J. Joseph; P.N. Ramakrishnan Nair; For Petitioners Kallada Sukumaran; Mathew P. Mathew; For Respondents

The main legal point established in the judgment is the classification of establishments as commercial consumers or non-domestic consumers for the purpose of electricity tariff rates, taking into account the essential services exemption and the discrimination under Art.14.

Headnote:

Churches, Convents, Orphanages, Seminaries, Hospitals, Educational Institutions, Hostels etc. - Electricity Act, 1948, S.49 - The Kerala State Electricity Board Low Tension (other than Public lighting) Tariff Order, 1985 - The Government of Kerala orders under S.22-B of the Indian Electricity Act - The Government Order dated 14-8-1986 - LT VI Non-Domestic (Single or 3 phase) category - Commercial consumers - Non domestic consumers - Enhanced electric tariff - Reduced tariff rates - Statutory power of Government to fix tariff rates under S.22-B - Classification of consumers for fixation of different rates of electricity tariff - Commercial consumers liable to pay enhanced electric tariff - Classification of establishments as commercial consumers - Enhanced levy of electricity tariff - Essential services exemption - Discrimination under Art.14 - Consumer classification for electricity purposes - Commercial establishment definition - Economic activity systematically or habitually conducted for the production or distribution of goods or for rendering material services to the community - Co-operative endeavour between the employer and employee - Educational institutions and Nursing schools as commercial consumers - Hospitals as essential services - Dispensaries attached to hospitals - Revised bills and collection of charges at normal tariff rates

Fact of the Case:

The main question in this batch of writ petitions was whether Churches, Convents, Orphanages, Seminaries, Hospitals, Educational Institutions, Hostels, etc. should be classified as 'commercial consumers' liable to pay enhanced electric tariff or as 'non domestic consumers' entitled to pay only at the reduced tariff rates fixed by the Board itself. The petitioners were classified as LT VI Non-domestic consumers under the Kerala State Electricity Board Low Tension Tariff Order, 1985. The Government of Kerala issued orders under S.22-B of the Indian Electricity Act, regulating the supply, distribution, and consumption of electrical energy, imposing a 100 percent power cut on certain consumers and limiting the supply of electrical energy for commercial purposes only. The petitioners contended that they cannot be treated as commercial consumers and challenged the Board's classification. The Board argued that the petitioners were correctly classified as commercial consumers and that the Board has the authority to classify consumers for the purpose of electrical tariff rates.

Finding of the Court:

The Court found that certain establishments such as Churches, Convents, Orphanages, and Seminaries should not be treated as commercial consumers and should be classified as non-domestic consumers entitled to pay at the reduced tariff rates. However, it upheld the classification of Educational Institutions, Nursing Schools, Hostels, Hospitals, and Dispensaries as commercial consumers. The Court also held that hospitals, whether high tension or low tension consumers, are essential services and should be treated alike, and thus, should pay only the normal tariff rates. The Court directed the Board to issue revised bills and collect charges accordingly.

Issues: The main issue was whether certain establishments should be classified as commercial consumers or non-domestic consumers for the purpose of electricity tariff rates. Additionally, the Court addressed the discrimination under Art.14, the essential services exemption, and the classification of hospitals as commercial consumers.

Ratio Decidendi: The Court held that establishments such as Churches, Convents, Orphanages, and Seminaries should not be treated as commercial consumers, while Educational Institutions, Nursing Schools, Hostels, Hospitals, and Dispensaries should be classified as commercial consumers. The Court also emphasized that hospitals, whether high tension or low tension consumers, are essential services and should be treated alike, paying only the normal tariff rates. The Court further directed the Board to issue revised bills and collect charges accordingly.

Final Decision: The Court decided that certain establishments should be classified as non-domestic consumers entitled to pay at the reduced tariff rates, while others should be classified as commercial consumers. The Court directed the Board to issue revised bills and collect charges accordingly. The Court also made it clear that nothing in the judgment shall prevent the Government or the Board from making a fresh classification or imposing new additional levy on the existing class of consumers, in accordance with the law.