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2014 Supreme(Ker) 72

High Court of Kerala
THE HONOURABLE MR. JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE ANIL K. NARENDRAN, JJ.
Kerala State Electricity Board, represented by its Secretary & Others
Versus
M/s. Hamsaveni Carbides & Others
WA. No. 1876 of 2013 IN WP(C). 6134 of 2009
Decided on: 05-02-2014

Advocates Appeared:
For the Appellant:P. Santhalingam, Sr. Advocate, S. Sharan, SC, K.S.E. Board.
For the Respondents:R1, J. Julian Xavier, Firoz K. Robin, Advocates.

Headnote:

Evidence Act, 1872 - Section 115 - "Promissory Estoppel" - Promise made by Government - Applicability of doctrine of - Held, Promise which is intend to be acted and binding upon is of binding nature - promise made by the Government should be clear and unequivocal and that the promisee should have acted upon such promise to his detriment

Judgment :

Antony Dominic, J.

1. This appeal is filed by respondents 1 to 3 and 6 in WP(C) No.6134/09, who are aggrieved by the judgment of the learned Single Judge allowing the writ petition filed by the 1st respondent herein.

2. Briefly stated, the facts of the case are that the 1st respondent herein, who filed the writ petition, is a small scale industrial unit engaged in the production of Calcium Carbide. They started commercial production on 30/1/95 availing of power supply from the first appellant as a High Tension consumer. According to them, there was a major machinery break down on 27/9/01 and as a result, the production in the unit came to a halt. While this position was continuing, on 2/8/2008, State of Kerala issued GO(Rt) No.209/08/PD ordering waiver of minimum demand charges/fixed charges for electricity for the period of closure in respect of all closed HT/LT plantations and industrial units which will be restarting their operation on or before 31/12/2008.

3. The first appellant Board in its meeting held on 18/8/2008 adopted the Government Order and issued Ext.P3 Board order dated 30/8/2008 for implementation of the Government Order, subject to the following conditions;

1) To extend the cut-off date for waiver of MD charges in respect of closed industrial units/plantations specified in the G.O(Rt) No.35/07/PD dated 24/2/2007 for a further period upto 31/12/2008.

2) To extend the benefit of waiver of fixed charges in respect of LT industrial units and plantations, if they re-open on or before 31/12/2008.

3) The firm availing the benefit of waiver shall have to function for a minimum period of 6 months after re-opening, failing which the benefit will be withdrawn.

4) Government Order shall be applicable only to the units reopening on or before 31/12/2008 and subject to the condition that the package for repayment will be considered by the Board by processing individual cases of plantations and industrial units (both HT and LT) on production of a certificate regarding closure and reopening obtained from the competent authority.

5) To extend the benefit of waiver of MD charges to consumers whose service connection was dismantled, if they re-open on or before 31/12/2008.

6) To effect the reconnection on remittance of 1/3rd of arrears and interest for instalment and allowing a maximum of six instalments for the balance amount subject to the condition that arrear instalments and monthly electricity charges shall be paid promptly by the consumer failing which, waiver of MD/fixed charges for closed period will be withdrawn and supply disconnected.

7) When there are more than one spell of closure intervened by a spell of operation, the last spell of closure only shall be taken for granting waiver of minimum demand charges.

4. Coming to know of Ext.P3, the 1st respondent submitted Ext.P4 representation dated 29/11/2008 requesting the second appellant to extend them the benefit of Ext.P3 Board order. According to them, there was delay in considering the request and therefore, they filed WP(C) No.36490/08 before this Court. That writ petition was disposed of by Ext.P6 judgment rendered on 9/1/2009 recording the undertaking of the standing counsel for the first appellant that they will consider Ext.P4 in accordance with law within a period of one week.

5. While the matter stood thus, the 3rd respondent issued Ext.P7 communication requesting several High Tension consumers including the 1st respondent to attend a meeting convened on 24/1/2009 in the chamber of the 2nd respondent. Accordingly, a meeting was held and the representative of the 1st respondent also attended the same. The minutes of the meeting is Ext.P8 and in so far as the 1st respondent is concerned, it reads thus;

“Hamsaveni Carbides (File No. 35123 / J3/08/ID): Chairman is requested to accept the principal amount alone and give power connection to the unit. He may also consider the request of waiver of MD charges etc. separately provided the company resumes production by 15th

























































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