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2025 Supreme(Ker) 3018

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MOHAMMED NIAS C.P.
Malayalam Chemicals (P) Ltd. – Appellant
Versus
State of Kerala – Respondent


Advocates Appeared:
For the Appellants : T.K. Sreekala, J. Julian Xavier, S. Parvathi, Nikitha Susan Paulson, Uthara Asokan, Anand Geo, K.I. Mayankutty Mather
For the Respondent: B. Premod

Judgement Key Points

Certainly. Based on the provided legal document, the key points are as follows:

  1. The petitioner, a high tension industrial consumer, challenged the rejection of its application for a one-time settlement (OTS) of electricity arrears under a new OTS scheme, despite previous penal charges related to electricity theft being remitted (!) .

  2. The court emphasized that the conditions imposed by the Board for the OTS scheme were inconsistent with the scheme’s terms, particularly the finality of the scheme’s conditions, and reaffirmed the petitioner’s entitlement to the benefits of the scheme (!) (!) .

  3. The petitioner had remitted a substantial amount towards penal charges and arrears, and had been granted a No Objection Certificate to avail a new electricity connection, indicating compliance with prior directives (!) (!) .

  4. The scheme in question explicitly permitted settlement of cases involved in prior or pending litigations, and the scheme’s purpose was to facilitate early recovery of arrears, especially those tied up in litigation, without additional restrictions that were not explicitly included in the scheme (!) (!) .

  5. The court held that the Board’s attempt to impose additional conditions, such as disqualifying consumers with pending cases or previous adjudications, was contrary to the scheme’s terms and cannot be justified (!) .

  6. The court stressed that once an amnesty or OTS scheme is introduced, the Board is bound by its terms and conditions, and courts cannot alter or add restrictions to those terms. The scheme functions as an offer for settlement, and acceptance constitutes a binding settlement based on the scheme’s specific conditions (!) (!) .

  7. The petitioner’s prior compliance, including remittance of penal charges and interest within the stipulated time, and the fact that the scheme allows settlement even with pending court cases, support the petitioner’s claim to the scheme’s benefits (!) .

  8. The court ultimately found that the Board’s rejection of the petitioner’s claim under the scheme was unlawful, leading to the quashing of the impugned orders and directing the Board to recalculate the payable amount in accordance with the scheme, refunding any excess paid (!) (!) .

  9. The decision underscores that the scheme’s terms are final and cannot be modified or supplemented by the Board through additional conditions or restrictions not included in the scheme itself (!) (!) .

  10. The court’s order mandates the Board to complete the recalculation and refund process within six weeks of receiving a copy of the judgment, ensuring the petitioner’s rights under the scheme are upheld (!) (!) .

Please let me know if you need further analysis or assistance with this case.


Table of Content
1. petitioner was an ht industrial consumer with dues under dispute. (Para 1 , 2)
2. petitioner's service connection dismantled over arrears. (Para 3 , 4 , 5)
3. petitioner's entitlement under ots scheme was reaffirmed. (Para 6 , 7)
4. court emphasized adherence to terms of ots scheme. (Para 8 , 9 , 10 , 11 , 12)
5. board's rejections discussed—conditions concerning eligibility evaluated. (Para 13 , 14)
6. final order quashes previous decisions and allows writ petition. (Para 16)

JUDGMENT :

1. The petitioner, M/s. Malayalam Chemicals (P) Ltd., a company incorporated under the Companies Act, 1956, was an HT industrial consumer under the Electrical Section, Irumpanam, with a contract demand of 500 KVA, and had commenced commercial production of Calcium Carbonate on 11.03.1996. Following default in paying the arrears of electricity charges, the petitioner’s service connection was dismantled on 07.10.2006. Ext.P16 order dated 28.01.2025 issued by 3rd respondent shows that the petitioner had an outstanding arrears of Rs.27,27,744/- towards regular current charges for the consumption from 09/2000 to 04/2006, after adjusting Rs.7,57,624/- towards pre-92 tariff benefit and Rs.40,5

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