Whether the Kerala State Electricity Board is entitled to continue the exemption granted under S.73A of the Kerala Court Fees and Suits Valuation Act (for short “Court Fees Act”), consequent to its being formed as a company during the pendency of the suit, is the question that arises for consideration before this Court.

2. O.S.No.627/2010 was filed before the Sub Court, Thiruvananthapuram by the Kerala State Electricity Board (for short 'KSE Board'), which was then a Board under the Government of Kerala, for recovery of Rs.1,13,14,117/-from the defendant, M/s Hindustan Constructions Company. A sum of Rs.8,36,542/- was to be paid by the KSE Board and the Board sought exemption from payment of the Court fees under the provisions of S.73A of the Act and it was granted by the Court. The Court proceeded with trial and no objection was raised by the defendant regarding the deficiency of the Court fees in the written statement. When the suit came up for final hearing before the trial Court, the defendant filed I.A.No.2792/2016 challenging the exemption granted to the plaintiff from payment of Court fees. The plaintiff opposed this application stating that the petition was belated and ought to have been raised at the appropriate stage. It was also contended that the Court fees as on the date of filing of the suit, the plaintiff was entitled to exemption under S.73A of the Court Fees Act, and that it could not have been reviewed by the Court at a later stage.

3. After hearing both sides and considering the scope of S.131 of the Electricity Act, 2003, as well as the Scheme famed by the State of Kerala as Kerala Electricity First Transfer Scheme, 2008 and the Kerala Electricity Second Transfer Scheme (Re-vesting) 2013, the learned Sub Judge held that the property, rights and liabilities of the Board, which had initially vested in the Government of Kerala has been reinvested in the newly constituted company consequent to the forming of the company, and hence, the plaintiff cannot be considered as the State of Kerala in order to claim exemption from payment of Court fees. The Court, therefore, found that there was sufficient reason for reviewing the order of granting exemption to the plaintiff from payment the Court fees. The plaintiff was directed to pay requisite Court fees within 15 days from the date of the impugned order.

4. Aggrieved by this impugned order dated 02-11-2016, the plaintiff has come up on revision. It is pointed out that in accordance with S.131 of the Electricity Act, the Government formulated a Transfer Scheme known as Kerala Electricity First Transfer Scheme vide SRO No.990/2008 dated 25.09.2008 and that by virtue of clause (8) of the Scheme, the Government was entitled to initiate legal proceedings for recovery of any amount due to the erstwhile Electricity Board and the suit was filed by the State Government through a Special Officer for realisation of the amount due from the respondent. The Court below was pleased to grant the exemption sought under the provisions under S.73A of the Court Fees Act. It is consequent to that, that the respondent herein appeared and filed a written statement on 20.06.2011. No objection was raised and the issues were framed regarding the insufficiency or non-payment of Court fees and the trial proceeded. Only when the matter came up for final hearing that the respondent filed I.A.No.2792/2016 questioning the validity of the exemption granted under S.73A of the Court Fees Act. The allegation is that by virtue of the Kerala Electricity Second Transfer Scheme (Re-vesting), 2013 which came into effect on 31.10.2013, the company under the name Kerala State Electricity Board Ltd. was formed and hence the plaintiff lost the status of being the State Government and therefore, the respondent insisted for reviewing the earlier exemption granted. It is alleged that by virtue of the Second Transfer Scheme, the status has changed from State Government to a fully owned Government company, an