SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Jhk) 1434

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
Anil Kumar Choudhary, J.
M/s. Dayal Steels Limited - Petitioner
Versus
Damodar Valley Corporation and ors. - Respondents
W.P.(C) No.1727 of 2002 & W.P.(C) No.3205 of 2002
Decided On : 28-07-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. M. S. Mittal, Sr. Advocate, Mr. Salona Mittal, Advocate, Ms. Amrita Singh, Advocate, Mr. Yashdeep Kanhai, Advocate, Mr. Arya Vardhan Singh, Advocate, Ms. Divya Choudhary, Advocate
For the Respondent:Mr. Srijit Choudhary, Advocate, Ms. Tanya Rai, Advocate, Mr. Aayush Ojha, Advocate

The court upheld that a voluntarily entered agreement for billing practices, despite subsequent legislative changes, remains binding on the parties involved unless proven otherwise.

Headnote:(A) Constitution of India - Article 226 - Indian Electricity Act, 1910 - Dispute regarding billing and adjustment of transmission loss - Petitioner sought direction for billing based on their meter; respondents billed based on sub-station meter without adjustment. Court held that petitioner voluntarily agreed to billing terms and the adjustments made were valid. (Paras 2, 6, 16)

(B) Writ Jurisdiction - Court acknowledged existence of alternative remedies, but noted that dismissing writ petitions solely on this ground was not justified when the matter had been pending for a long time, and parties had exchanged pleadings. (Paras 7, 8)

Facts of the case:
The petitioner, a medium scale industry, engaged in manufacturing in Hazaribagh, contested the billing practices of the respondent company for electrical energy, claiming excessive charges due to a lack of accounting for transmission losses - They contested bills raised based on a sub-station meter instead of their internal meter. (Paras 4, 5)

Findings of Court:
The court determined the agreement for billing based on sub-station meters was valid since it was voluntarily entered into by the petitioner and clarified that the petitioner failed to present evidence indicating improper billing practices by the respondent. (Paras 16, 17)

Issues: Whether the writ petitions were maintainable due to the presence of an alternative remedy and whether the petitioner was justified in seeking adjustments in bills based on their installed meter instead of the sub-station's meter. (Paras 6, 8)

Ratio Decidendi: The court concluded that agreements made are binding unless proven invalid, and that a consumer cannot backtrack on accepted terms based on later changes in legislation or agreements. Dismissing the petitions, the court noted the absence of merit in the petitioner's claims. (Paras 16, 18)

Result: Writ Petitions dismissed without cost.

Table of Content
1. petitioner's claims related to electricity billing. (Para 2 , 3 , 4 , 5)
2. arguments on maintainability of writ petitions. (Para 6 , 7)
3. maintainability of writ petitions discussed. (Para 8 , 9)
4. consumer rights regarding electricity billing. (Para 10 , 11)
5. respondent's defenses against the petitioner's claims. (Para 12 , 13 , 14)
6. final legal reasoning regarding agreements. (Para 15 , 16 , 17)
7. court's decision to dismiss the petitions. (Para 18)

JUDGMENT :

Anil Kumar Choudhary, J.

Heard the parties.

2. Both these Writ Petitions have been filed under Article 226 of the Constitution of India between the same parties in respect of the same subject matter but W.P.(C) No.3205 of 2002 has been filed with a slightly different prayer which was required after partial compliance of the prayer made in W.P.(C) No.1727 of 2002 by the respondents of the said writ petition, hence, both these Writ Petitions are disposed of by this common judgment.

3. The brief fact of the case is that the petitioner is a medium scale industry and it had set up its plant at village Chaha in the district of Hazaribagh for manufacturing of steel ingots/ billets as well as Ferro Alloys. In July, 2000, the petitioner entered into an agreement with the respondent- D.V.C. for supply of electrical energy with an initial contract demand of 3 MVA (3000 KVA). The petitioner constructed a sub-station in its premises under the supervision of the respondents and the same was inspected and approved by the competent authority of Central Electricity Department, New Delhi. Subsequently, there was an offer given by the respondent- D.V.C. on 08.01.2001 in terms of the decision taken by the D.V.C. Management that the tariff meter will be installed at the D.V.C. Premises only and the petitioner was requested to convey its acceptance. On the same day, the petitioner agreed to accept the installation of the tariff meter at D.V.C. Sub-station at Ramgarh for billing purposes provided that the line loss/transmission loss from D.V.C. Ramgarh Sub-station to the factory be allowed to the petitioner. Thereafter, the respondent issued a direction to its authorities giving clearance for commencing electric supply with contract demand of 3 MVA. The electric line of the petitioner was analyzed on 24.01.2001. The contract demand was enhanced to 5 MVA and subsequently in August, 2001 it was finally enhanced to 7 MVA. The respondents started raising bills on the basis of meter reading installed at its Sub-station at Ramgarh but no line loss/transmission loss was given; as was agreed upon between the parties. It is contended by the petitioner that in general loss on account of line loss/transmission loss is 7%-8% in respect of KVA and 10%-12% in respect of KWH. It is also submitted that the meter in the premises of DVC is installed, more than 9 kilometres away from the load point situated within the factory premises of the petitioner. Even in spite of writing several letters to the concerned authorities of the respondent- D.V.C., the respondent continued to raise current monthly bills without giving any due weightage on account of line loss/transmission loss.

4. The petitioner earlier filed W.P.(C) No.6023 of 2001 and a co-ordinate Bench of this Court vide its judgment dated 29.01.2002 directed the respondent authorities to take final decision in the matter of grant of transmission loss to the petitioner within 30 days after giving a reasonable opportunity of hearing to the petitioner. The respondents were further directed to revise all the bills and the excess amount paid by the petitioner against the bills, were directed to be refunded or adjusted in future. As the respondents did not dispose of the matter in spite of specific time as fixed by the co-ordinate Bench of this Court in the said W.P.(C) No.6023 of 2001 and sat over the matter for over one year and deliberately not taking the decision in the matter and were continuing raising bills for the month of January, 2002

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top